WORLD TRADE  
ORGANIZATION  WT/REG169/1 
30 April 2004  
 
(04-1922) 
Committee on Regional Trade Agreements Original:   English/ 
                  Spanish 
  
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND CHILE 
 
  The following joint communication, dated 8 April 2004, is being circulated at the request of 
the Delegations of the Republic of Korea and Chile.  
_______________ 
 
TABLE OF CONTENTS
 
 
PREAMBLE 
PART I: GENERAL ASPECTS 
• Chapter 1: Initial Provisions 
• Chapter 2: General Definitions 
 Annex 2.1 
 PART II: TRADE IN GOODS 
• Chapter 3: National Treatment And Market Access For Goods 
 Annex 3.5 
 Annex 3.9 
• Chapter 4: Rules Of Origin 
• Chapter 5: Customs Procedures 
• Chapter 6: Safeguard Measures 
• Chapter 7: Anti-Dumping And Countervailing Duty Matters 
• Chapter 8: Sanitary A nd Phytosanitary Measures 
• Chapter 9: Standards-Related Measures 
 Annex 9.10 
 
PART III: INVESTMENT, SERVICES AND RELATED MATTERS 
• Chapter 10: Investment 
 Annex 10.9.6 
 Annex 10.11 
 Annex 10.20  Annex 10.41.2  Annex 10.41.4  Annex 10.43 
• Chapter 11: Cross-Border Trade In Services 
 Annex 11.9 
• Chapter 12: Telecommunications 
 Annex 12.1 
 Annex 12.5.8 
• Chapter 13: Temporary Entry For Business Persons 
 Annex 13.4: Temporary Entry For Business Persons 
 Annex 13.4.1 
 Appendix 13.4.I.1 
 Appendix 13.4.I.3 WT/REG169/1 
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• Chapter 14: Competition 
 
PART IV: GOVERNMENT PROCUREMENT 
• Chapter 15: Government Procurement 
 Annex 15.1 
 Annex 15.2 
 
PART V: INTELLECTUAL PROPERTY RIGHTS 
• Chapter 16: Intellectual Property Rights 
 Annex 16.4.3 
 Annex 16.4.4  Annex 16.4.5 
 
PART VI: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 
• Chapter 17: Transparency 
• Chapter 18: Administration Of The Agreement 
 Annex 18.1.1 
 Annex 18.1.2(c)  Annex 18.1.3(c)  Annex 18.2 
• Chapter 19: Dispute Settlement 
 Annex 19.2 
 Annex 19.10  Annex 19.7 
 
PART VII: OTHER PROVISIONS 
• Chapter 20: Exceptions 
• Chapter 21: Final Provisions 
 
ANNEX 3.4: Elimination Of Customs Duties 
• Section B: Schedule of Chile 
• Section C: Schedule of Korea 
 
ANNEX 4: Specific Rules Of Origin 
 
ANNEX I: Reservations for Existing Measures and Liberalization Commitments 
 (Chapters 10 and 11) 
• Schedule of Chile 
• Schedule of Korea 
 
ANNEX II: Reservations for Future Measures 
 (Chapters 10 and 11) 
• Schedule of Chile 
• Schedule of Korea 
 
ANNEX III: Quantitative Restrictions (Chapter 11) 
• Schedule of Chile 
• Schedule of Korea 
 
ANNEX IV: Miscellaneous Commitments (Chapter 11)   WT/REG169/1 
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FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KOREA 
AND THE GOVERNMENT OF THE REPUBLIC OF CHILE 
   The Government of the Republic of Korea  (“Korea”) and the Government of the Republic of 
Chile  (“Chile”), hereinafter referred to as “the Parties”; 
  Committed  to strengthening the special bonds of  friendship and cooperation between their 
countries;  
 Sharing  the belief that a free trade agreement shall produce mutual benefits to each Party and 
contribute to the expansion and development of world trade under the multilateral trading system 
embodied in the Marrakesh Agreement Establis hing the World Trade Organization (“the WTO 
Agreement”);  
 Building  on their respective rights and obligations under the WTO Agreement and other 
multilateral, regional and b ilateral instruments of cooperation, including APEC; 
  Resolved to promote reciprocal trade and investment through the establishment of clear and 
mutually advantageous trade rules and the a voidance of trade and investment barriers; 
 
 Recognizing  that this Agreement should be implem ented with a view toward raising the 
standard of living, creating new work opportuniti es, and promoting sustainable development in a 
manner consistent with environmen tal protection and conservation; 
  Committed  to promoting the public welfare within each of their countries; and  
 
 Desiring  to strengthen the parallel development of market economy and democracy within 
their countries;  HAVE AGREED  as follows: 
 
 
PART I : GENERAL ASPECTS 
 
CHAPTER 1 : INITIAL PROVISIONS 
 
Article 1.1 
 
Establishment Of The Free Trade Area
 
  The Parties to this Agreement, consistent w ith Article XXIV of the General Agreement on 
Tariffs and Trade 1994 (“GATT”) and Article V of the General Agreement on Trade in Services 
(“GATS”), which are part of the WTO Agreement, hereby establish a free trade area. 
 
Article 1.2 
 
Objectives
 
 
1. The objectives of this Agreement, as elaborated  more specifically through its principles and 
rules, including national treatment, most-favoured -nation treatment and transparency, are to: 
(a) encourage expansion and diversification of  reciprocal trade between the Parties; WT/REG169/1 
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(b) eliminate barriers to trade in, and facilita te the cross-border movement of, goods and 
services between  the territories of the Parties; 
(c) promote conditions of fair competition in the free trade area; 
(d) substantially increase investment opportunities between the territories of the Parties; 
(e) provide adequate and effective protection and enforcement of intellectual property 
rights in each Party's territory; 
(f) create effective procedures for the implementation and application of this Agreement, 
for its joint  administration, and for the resolution of disputes; and 
(g) establish a framework for further bilatera l and multilateral cooperation in order to 
expand and enhance the benef its of this Agreement. 
2. The Parties shall interpret and apply the provisi ons of this Agreement in the light of the 
objectives set out in paragraph 1 and in accordance w ith the applicable rules of international law. 
Article 1.3 
 
Relation To Other International Agreements
 
 
1. The Parties affirm their existing rights and obligations with respect to each other under the 
WTO Agreement and other international agreem ents to which both Parties are party. 
2. In the event of any inconsistency between th is Agreement and such other agreements under 
paragraph 1, this Agreement shall prevail to the extent of the inconsiste ncy, except as otherwise 
provided in this Agreement. 
Article 1.4 
 
Succession Of Treaties Or International Agreements  
  Any reference in this Agreement to any other treaty or international agreement shall be made 
in the same terms to its successor treaty or intern ational agreement to which the Parties are party. 
 
Article 1.5 
 
Extent Of Obligations
 
 
 The Parties shall ensure that all necessary measur es are taken in order to give effect to the 
provisions of this Agreement in their respective territories.   
CHAPTER 2 : GENERAL DEFINITIONS 
 
Article 2.1 
 
Definitions Of General Application
 
  For purposes of this Agreement, unless otherwise specified: 
 
 Agreement  means the free trade agreement between the Parties;  WT/REG169/1 
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 APEC  means Asia-Pacific Economic Cooperation; 
  citizen means a citizen as defined in Annex 2.1 fo r the Party specified in that Annex; 
  Commission  means the Free Trade Commission established under Article 18.1; 
 
 Customs Valuation Agreement  means the Agreement on Implementation of Article VII of 
the General Agreement on Tariffs and Trade 1994, in cluding its interpretative notes, which is part of 
the WTO Agreement;  
 days  means calendar days; 
  enterprise  means any entity constituted or organized under applicable law, whether or not for 
profit, and whether privately-owned or government ally-owned, including any corporation, trust, 
partnership, sole proprietorship, jo int venture and other association;  
 
 enterprise of a Party  means an enterprise constituted or organized under the law of a Party; 
  existing  means in effect on the date of entry into force of this Agreement; 
  GATS means the General Agreement on Trade in Services, which is part of the WTO 
Agreement; 
  GATT means the General Agreement on Tariffs and Trade 1994, which is part of the WTO 
Agreement;  
 Generally Accepted Accounting Principles  means the recognized consensus or substantial 
authoritative support in the territory of a Party with  respect to the recording of revenues, expenses, 
costs, assets and liabilities, disclosure of informati on and preparation of financial statements. These 
standards may be broad guidelines of general application as well as detailed standards, practices and 
procedures;  
 goods of a Party  means domestic products as these are understood in the GATT or such  
goods as the Parties may agree upon, including originating goods of that Party. The goods of the Parties may incorporate materials of other countries;   Harmonized System (HS)  means the Harmonized Commodity Description and Coding  
System, including its General Rules of Interpretati on, Section Notes and Chapter Notes, as adopted 
and implemented by the Parties in their respective tariff laws;   heading  means a code of tariff classification of the Harmonized System at the level of four 
digits;  
 measure  means, inter alia , any law, regulation, procedure or administrative action,  
requirement or practice;   national  means a natural person who is a citizen  or permanent resident of a Party; 
 
 originating good  means a good qualifying under the rules of origin set out in Chapter 4; 
  person  means a natural person or an enterprise; 
  person of a Party  means a national or an enterprise of a Party; 
 WT/REG169/1 
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 Secretariat  means the Secretariat established under Article 18.2; 
  standards-related measures  means a standard, technical regulation or conformity 
assessment procedure;  
 state enterprise  means an enterprise that is owned or  controlled through ownership interests 
by a Party;   subheading  means a code of tariff classification of the Harmonized System at the level of six 
digits; 
 
 Tariff Elimination Schedule  means the Tariff Elimination Schedule referred to in        
Article 3.4;   territory  means for a Party, the territory of that Party as set out in Annex 2.1; 
 
 TBT Agreement  means the Agreement on Technical Barriers to Trade, which is part of the 
WTO Agreement;   TRIPS Agreement  means the Agreement on Trade Relate d Aspects of Intellectual Property 
Rights, which is part of the WTO Agreement; 
 
 Uniform Regulations  means the regulations established under Article 5.12; and 
  WTO Agreement  means the Marrakesh Agreement Establishing the World Trade 
Organization, done on April 15, 1994. 
 
 
ANNEX 2.1 
 
Country-Specific Definitions
 
 
 For purposes of this Agreement, unless otherwise specified: 
  citizen  means: 
 
(a) with respect to Chile, a Chilean as defined in Article 13 of the Political Constitution 
of the Republic of Chile ("Constitución Política de la República de Chile); and 
(b) with respect to Korea, a Ko rean as defined in Article 2 of the Constitution of the 
Republic of Korea and its relevant law. 
 territory  means: 
 
(a) with respect to Chile, the land, maritime, and air space under its sovereignty, and the 
exclusive economic zone and the continenta l shelf over which it exercises sovereign 
rights and jurisdiction in accordance with in ternational law and its domestic law; and 
(b) with respect to Korea, the land, mariti me, and air space under its sovereignty, and 
those maritime areas, including the seabed and subsoil adjacent to the outer limit of 
the territorial sea over which it exercises sovereign rights or jurisdiction in 
accordance with international law and its domestic law. 
  WT/REG169/1 
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PART II : TRADE IN GOODS 
 
CHAPTER 3 : NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
 
Section A - Definitions And Scope And Coverage  
 
Article 3.1 
 
Definitions  
 
 For purposes of this Chapter: 
  advertising films means recorded visual media, with or without sound-tracks, consisting 
essentially of images showing the nature or operation of goods or services offered for sale or lease by 
a person established or resident in the territory of any Party, provided that the films are of a kind 
suitable for exhibition to prospective customers but not for broadcast to  the general public, and 
provided that they are imported in packets that each  contain no more than one copy of each film and 
that do not form part of a larger consignment;   agricultural goods  means those goods referred to in  Article 2 of the Agreement on 
Agriculture, which is part of the WTO Agreement; 
 
 commercial samples of negligible value  means commercial samples having a value, 
individually or in the aggregate as shipped, of not more than one U.S.  dollar, or the equivalent amount 
in the currency of either of the Parties, or so mark ed, torn, perforated or otherwise treated that they are 
unsuitable for sale or for use except as commercial samples; 
 
 consumed  means: 
 
(a) actually consumed; or 
(b) further processed or manufactured so as to result in a substantial change in value, 
form or use of the good or in the production of another good; 
 customs duty  means any customs or import duty and a charge of any kind imposed in 
connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:  
(a) charge equivalent to an internal tax impo sed consistently with Article III:2 of GATT, 
or any equivalent provision of a successor ag reement to which both Parties are party; 
(b) anti-dumping or countervailing duty that is a pplied pursuant to a Party's domestic law 
and consistently with Chapter 7; 
(c) fee or other charge in connection with importation commensurate with the cost of 
services rendered; and 
(d) premium offered or collected on an im ported good arising out of any tendering 
system in respect of the administration of  quantitative import restrictions, tariff rate 
quotas or tariff preference levels; 
 goods imported for sports purposes  means sports requisites for use in sports contests, 
demonstrations or training in the territory of the Party into whose territory such goods are imported; WT/REG169/1 
Page 8  
 
 goods intended for display or demonstration  includes their component parts, ancillary 
apparatus and accessories;   printed advertising materials  means those goods classified in Chapter 49 of the Harmonised 
System, including brochures, pamphlets, leaflets , trade catalogues, yearbooks published by trade 
associations, tourist promotional mate rials and posters, that are used to promote, publicise or advertise 
a good or service, are essentially intended to advertise a good or service, and are supplied free of charge; and   repair or alteration  does not include an operation or process that either destroys the essential 
characteristics of a good or creates a new or commercially different good.
1 
 
Article 3.2 
 
Scope And Coverage  
 
 This Chapter shall be applied to th e trade in goods between the Parties. 
 
Section B - National Treatment  
 
Article 3.3 
 
National Treatment  
 1. Each Party shall accord national treatment to th e goods of the other Party in accordance with 
Article III of GATT, including its interpretative notes,  and to this end, Article III of GATT and its 
interpretative notes, or any equivalent provision of  a successor agreement to which both Parties are 
party, are incorporated into and made part of this Agreement. 
2. For the purpose of paragraph 1, each Party shall grant to the goods of the other Party a 
treatment no less favourable than the most favourable treatment granted by that Party to its own like 
or directly competitive or substitu table goods of national origin.  
Section C - Tariffs
 
 
Article 3.4 
 
Tariff Elimination  
 
1. Except as otherwise provided in this Agreem ent, neither Party may increase any existing 
customs duty or adopt any customs duty on a good. 
2. Except as otherwise provided in this Agreement,  each Party shall progressively eliminate its 
customs duties on originating goods in accordance w ith its Tariff Elimination Schedule set out in 
Annex 3.4. 
3. If at any moment a Party reduces its most-favour ed-nation customs duties to non-Parties for 
one or more goods included in the Agreement, the Parties shall consult to consider adjusting the 
customs duties applicable to reciprocal trade. 
                                                      
1 An operation or process that is part of the production or assembly of an unfinished good into a 
finished good is not a repair or alteration of the unfinished good; a component of a good is a good that may be 
subject to repair or alteration.  WT/REG169/1 
 Page 9 
 
 
4. Upon request of a Party, the Parties shall consu lt to consider accelera ting the elimination of 
customs duties set out in their Tariff Elimination Schedules. 
5. The agreement reached pursuant to paragraph 4 regarding the accelerated elimination of 
customs duties on an originating good shall be put into effect in accordance with Article 18.1 and 
each Party’s applicable legal procedures, and sh all prevail over any other duty rate or staging 
category, determined pursuant to its Ta riff Elimination Schedule for the good. 
6. Except as otherwise provided in this Agreement,  either Party may adopt or maintain import 
measures to allocate in-quota imports made pursuan t to a tariff rate quota set out in Annex 3.4, 
provided that such measures do not have trade rest rictive effects on imports additional to those caused 
by the imposition of the tariff rate quota. 
Article 3.5 
 
Temporary Admission Of Goods  
 1. Each Party shall grant duty-free temporary admission, including exemption from fees as 
specified in Annex 3.5 for: 
(a) professional equipment necessary for carrying out the business activity, trade or 
profession of a business person who qualifies for temporary entry pursuant to  Chapter 13, 
(b) equipment for the press or for sound or te levision broadcasting and cinematographic 
equipment, 
(c) goods imported for sports purposes and goods in tended for display or demonstration, 
and 
(d) commercial samples and advertising films,  
admitted from the territory of the other Party, regard less of their origin and regardless of whether like 
or directly competitive or substitutable goods ar e available in the territory of the Party. 
 
2. Except as otherwise provided in this Agreem ent, neither Party may impose any condition 
upon the duty-free temporary admission of a good referre d to in subparagraph 1(a), (b) or (c), other 
than the requirement that such a good: 
(a) be admitted by a national or resident of the other Party who seeks temporary entry; 
(b) be used solely by or under th e personal supervision of such a person in the exercise of 
the business activity, trade or profession of that person; 
(c) not be sold or leased while in its territory; 
(d) be accompanied by a bond in an amount no greater than 110 per cent of the charges 
that would otherwise be owed on entry or fi nal importation, or by another form of 
security, releasable on exportation of the good, except that a bond for customs duties 
shall not be required for an originating good; 
(e) be capable of identification when exported; WT/REG169/1 
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(f) be exported on the departure of that person or  within such other period of time as is 
reasonably related to the purpose of the temporary admission; and 
(g) be imported in no greater quantity than is reasonable for its intended use. 
3. Except as otherwise provided in this Agreem ent, neither Party may impose any condition 
upon the duty-free temporary admission of a good refe rred to in subparagraph 1(d), other than the 
requirement that such a good: 
(a) be admitted solely for the solicitation of  orders for goods or services provided from 
the territory of the other Party or a non-Party; 
(b) not be sold, leased or put to any use other than exhibition or demonstration while in 
its territory; 
(c) be capable of identification when exported; 
(d) be exported within such a period as is reasonably related to the purpose of the 
temporary admission; and 
(e) be admitted in no greater quantity than is reasonable for its intended use. 
4. Where a good is temporarily admitted duty-fr ee under paragraph 1 and any condition the 
Party imposes under paragraphs 2 and 3 has not been fulfilled, a Party may impose: 
(a) the customs duty and any other charge th at would be owed on entry or final 
importation of the good; and 
(b) any applicable criminal, civil or administ rative responsibilities that  the circumstances 
may warrant. 
5. Subject to Chapters 10 and 11: 
(a) each Party shall allow a container used in international traffic, which enters its 
territory from the territory of the other Party, to exit its territory on any route that is reasonably related to the economic and pr ompt departure of such a container; 
(b) neither Party may require any bond or impose any penalty or charge solely by reason 
of any difference between the port of entry and the port of departure of a container; 
(c) neither Party may condition the release of an y obligation, including any bond, that it 
imposes in respect of the entry of a containe r into its territory on its exit through any 
particular port of departure; and 
(d) neither Party may require that the carrier br inging a container from the territory of the 
other Party into its territory be the same carri er that takes the container to the territory 
of the other Party.  WT/REG169/1 
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Article 3.6 
 
Duty-Free Entry Of Certain Commercial Samples Of Negligible Value  
And Printed Advertising Materials  
 
 Each Party shall grant duty-free entry to comme rcial samples of negligible or non-commercial 
value, and to printed advertising ma terials, imported from the territory of the other Party, regardless of 
their origin, but may require that:  
(a) such samples be imported solely for the solicitation of orders for goods, or services 
provided from the territory, of the other Party or a non-Party, regardless of whether 
they are originating goods, or whether services are provided from the territory of the other Party or a non-Party; or 
(b) such advertising materials be imported in packets that each contain no more than one 
copy of each of such materials and that ne ither such materials nor packets form part 
of a larger consignment. 
Article 3.7 
 
Goods Re-Entered After Repair Or Alteration
 
 1. Neither Party may apply a customs duty to a good,  regardless of its origin, that re-enters its 
territory after that good has been exported or if it was under a temporary exit from its territory to the 
territory of the other Party for repair or alteration, regardless of whether such repair or alteration could 
be performed in its territory. 
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported 
temporarily from the territory of the other Party for repair or alteration.  
Article 3.8 
 
Customs Valuation
 
  The Customs Valuation Agreement shall govern the customs valuation rules applied by the 
Parties to their reciprocal trade. 
 
Section D - Non-Tariff Measures
 
 
Article 3.9 
 
Import And Export Restrictions  
 1. Except as otherwise provided in this Agreement,  neither Party may adopt or maintain any 
prohibition or restriction on the importation of an y good of the other Party or on the exportation or 
sale for export of any good destined for the territory  of the other Party, except in accordance with 
Article XI of GATT, including its interpretative notes,  and to this end, Article XI of GATT and its 
interpretative notes, or any equivalent provision of  a successor agreement to which both Parties are 
party, are incorporated into and made part of this Agreement. 
2. The Parties understand that the rights and obligations under GATT, incorporated by 
paragraph 1 prohibit, in any circumstances in which an y other form of restriction is prohibited, export 
price requirements and, except as permitted in enfo rcement of countervailing and antidumping orders 
and undertakings, import price requirements. WT/REG169/1 
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3. In the event that a Party adopts or maintains a prohibition or restriction on the importation 
from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent 
the Party from: 
(a) limiting or prohibiting the importation from the territory of the other Party of such a 
good of that non-Party; or 
(b) requiring as a condition of export of such a good of the Party to the territory of the 
other Party, that the good not be re-exported to the non-Party, directly or indirectly, 
without being consumed in the territory of the other Party. 
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of 
a good from a non-Party, the Parties, upon request of the other Party, shall consult with a view to 
avoiding undue interference with or distortion of pr icing, marketing and distribution arrangements in 
the other Party. 
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 3.9.  
Article 3.10 
 
Customs User Fees
 
  Customs user fees 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. They shall be based on specific rate s that correspond to the real value of the service 
rendered. 
 
Article 3.11 
 
Export Taxes
 
 
 Neither Party may adopt or maintain any duty, tax or other charge on the export of any good 
to the territory of the other Party, unless such duty,  tax or charge is adopted or maintained on such a 
good when destined for domestic consumption.   
Article 3.12 
 
Emergency Clause For Agricultural Goods
 
 1. Notwithstanding Chapter 6 of this Agreement a nd Article 5 of the Agreement on Agriculture, 
if, given the particular sensitivity of the agricultura l markets, a product originating in a Party is being 
imported into the other Party in such increased quantities and under such conditions as to cause or 
threaten to cause serious injury or disturbance in the markets of like or directly competitive products 
of the other Party, that Party may take appropr iate measures under the conditions and in accordance 
with the procedures laid down in this Article.  
2. If the conditions set out in paragraph 1 are met, the importing Party may: 
(a) suspend the further reduction of any customs duties on the products concerned 
provided for under this Chapter; or 
(b) increase the customs duty on the product to a level which does not exceed the lesser 
of:  WT/REG169/1 
 Page 13 
 
 
(i) the most-favoured-nation customs duty; or 
(ii) the basic customs duty to which the succes sive reductions are to be applied, 
pursuant to its Tariff Elimination Schedule. 
3. Before applying the measure as defined under para graph 2, the Party concerned shall refer the 
matter to the Commission for a thorough examination of the situation, with a view to seeking a 
mutually acceptable solution. If the other Party so re quests, the Parties shall hold consultations within 
the Commission. If no solution is found within 30 days of the request for such consultations, safeguard measures may be applied. 
4. Where exceptional circumstances require immediat e action, the importing Party may take the 
measures provided for in paragraph 2 on a transiti onal basis without complying with the requirements 
of paragraph 3 for a maximum period of 120 days. Such measures shall not exceed what is strictly 
necessary to limit or redress the injury or distur bance. The importing Party shall inform the other 
Party immediately. 
5. The measures taken under this Article shall not exceed what is necessary to remedy the 
difficulties that have arisen. The Party imposing the measure shall preserve the overall level of 
preferences granted for the agricultural sector. To achieve this objective, the Parties may agree on 
compensation for the adverse effects of the measure  on their trade, including the period during which 
a transitional measure applied in accordance with para graph 4 is in place. To this effect, the Parties 
shall hold consultations to reach a mutually agreed  solution. If no agreement is reached within 30 
days, the affected exporting Party may, after notification to the Commission, suspend the application of substantially equivalent concessions under this Chapter. 
6. For purposes of this Article: 
(a) “serious injury” shall be understood to m ean a significant overall impairment in the 
position of the producers as a whole of the like or directly competitive products operating in a Party; and 
(b) “threat of serious injury” shall be understood to mean serious injury that is clearly 
imminent based on facts and not merely on allegations, conjecture or remote 
possibility. 
Article 3.13 
 
Committee On Trade In Goods
 
 
1. The Parties hereby establish the Committee on Trade in Goods, comprising representatives of 
each Party. 
2. The Committee shall ensure the effective implem entation and administration of this Chapter, 
Chapter 4, Chapter 5 and Uniform Regulations. 
3. The Committee shall have the following functions: 
(a) to review and recommend to the Commission issues relating to market access, 
including the application of non-tariff measures; and 
(b) to promote trade in goods between the Pa rties through consultations and studies on 
matters relating to market access, including the periods established in Annex 3.4, in order to accelerate the tariff elimination process. WT/REG169/1 
Page 14  
 
ANNEX 3.5 
 
Temporary Admission Of Goods
 
  The temporary admission of goods from Korea specified in subparagraph 1 of Article 3.5 
shall not be subject to the payment of the fees  established in Article 106 of the Chilean Customs 
Ordinance (Ordenanza de Aduanas) contained in D ecree with Force of Law 2 of the Ministry of 
Finance, Official Gazette, July 21, 1998 (“Decreto con Fuerza de Ley 2 del Ministerio de Hacienda, 
Diario Oficial, 21 de julio de 1998”).  
 
ANNEX 3.9 
 
Import And Export Measures
 
 Chilean Measures 
 
 Notwithstanding Article 3.9, Chile may continue or adopt measures relate d to imports of used 
vehicles.   
CHAPTER 4 : RULES OF ORIGIN 
 
Article 4.1 
 
Definitions
 
 
 For purposes of this Chapter:   adjusted value  means the value determined under Artic les 1 through 8, Article 15, and the 
corresponding interpretative notes of the Custom s Valuation Agreement, for purposes of the 
application of the regional value content formula and the De Minimis , adjusted, if necessary, to 
exclude the following costs, charges, and expe nses from the customs value of the goods under 
consideration when not already excluded in accordan ce with the national legislation of a Party: any 
costs, charges, or expenses incurred for transportati on, insurance, and related services incident to the 
international shipment of the merchandise from the c ountry of exportation to the place of importation; 
 
 fungible goods or materials  means goods or materials that are interchangeable for 
commercial purposes and whose properties are essentially identical;   good  means any merchandise, product, article or material; 
 
 goods wholly obtained or produced entirely in the territory of one or both of the Parties 
means: 
 
(a) mineral goods extracted in the territory of one or both of the Parties; 
(b) vegetable goods, as defined in the Harmonise d System, grown and harvested in the 
territory of one or both of the Parties; 
(c) live animals born and raised in the terri tory of one or both of the Parties; 
  WT/REG169/1 
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(d) goods obtained from hunting, trapping or fishing in the territory of one or both of the 
Parties; 
(e) products of sea-fishing and other products ta ken from the sea outside the territory of 
one or both of the Parties by vessels register ed or recorded with a Party and flying its 
flag; 
(f) goods produced on board factory ships fro m the goods referred to in subparagraph 
(e), provided such factory ships are registered  or recorded with one of the Parties and 
fly its flag; 
(g) goods taken by a Party or a person of a Party from the seabed or beneath the seabed 
outside territorial waters, provided that a Party has rights to exploit such seabed; 
(h) goods taken from outer space, provided that they are obtained by a Party or a person 
of a Party and not processed in a non-Party; 
(i) waste and scrap derived from: 
(i) production in the territory of one or both of the Parties; or 
(ii) used goods collected in the territory of one or both of the Parties, provided 
that such goods are fit only for th e recovery of raw materials; and 
(j) goods produced in the territory of one or both of the Parties exclusively from goods 
referred to in subparagraphs (a ) through (i), or from their derivatives, at any stage of 
production; 
 indirect material  means a good used in the production, testing or inspection of a good but 
not physically incorporated into the good, or a g ood used in the maintenance of buildings or the 
operation of equipment associated with the production of a good, including: 
 
(a) fuel and energy; 
(b) tools, dies and moulds; 
(c) spare parts and materials used in the maintenance of equipment and buildings; 
(d) lubricants, greases, compounding materials and other materials used in production or 
used to operate equipment and buildings; 
(e) gloves, glasses, footwear, clothing, safety equipment and supplies; 
(f) equipment, devices, and supplies used for testing or inspecting the goods; 
(g) catalysts and solvents; and 
(h) any other goods that are not incorporated into the good but whose use in the 
production of the good can reasonably be de monstrated to be a part of that 
production; 
 intermediate material  means a material that is self-produced and used in the production of a 
good, and designated pursuant to Article 4.4;  WT/REG169/1 
Page 16  
 
 material  means a good that is used in the production of another good, such as a part or an 
ingredient;   non-originating good or non-originating material  means a good or material that does not 
qualify as originating under this Chapter; 
 
 packing materials and containers for shipments  means goods used to protect a good during  
its transportation, different from those containers  or materials used for its individual sale; 
  producer  means a person who grows, mines, ra ises, harvests, fishes, traps, hunts, 
manufactures, processes or assembles a good; 
  production  means growing, mining, harvesting, fish ing, reproducing and breeding, trapping, 
hunting, manufacturing, processing or assembling a good;  
 used means used or consumed in the production of goods; and  
  value of materials means: 
 
(a) Except in the case of packing materials and containers for shipments, for purposes of 
calculating the regional value content of a good, and for purposes of applying the De 
Minimis  rule, the value of a material that is used in the production of a good shall: 
(i) for a material that is imported by the producer of the good, be the adjusted 
value of the material with respect to that importation; 
(ii) for a material purchased in the territo ry where the good is produced, the 
producer’s actual cost for the material; and 
(iii) for a material provided to the producer without charge, or at a price reflecting 
a discount or similar reduction, the co st or value shall be determined by 
computing the sum of: 
a. all expenses incurred in the growth, production, or manufacture of 
the material, including general expenses; and 
 
   b. an amount for profit. 
 
(b) The value of materials may be adjusted as follows: 
(i) for originating materials, if not included under subparagraph (a), the 
following expenses may be added to the value of the material: 
a. the costs of freight, insurance, p acking and all other costs incurred in 
transporting the material to the location of the producer; 
 b. duties, taxes and customs brokerage fees on the materials paid in the 
territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including 
credit against duty or tax paid or payable; and  
 c. the costs of waste and spoilage resulting from the use of the material 
in the production of the good, less the value of renewable scrap or by-product.   WT/REG169/1 
 Page 17 
 
 
(ii) for non-originating materials, if included under subparagraph (a), the 
following expenses may be deducted from the value of the material:  
a. the costs of freight, insurance, p acking and all other costs incurred in 
transporting the material to the location of the producer; 
 
b. duties, taxes and customs brokerage fees on the material paid in the 
territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; 
 
c. the costs of waste and spoilage resulting from the use of the material 
in the production of the good, less the value of renewable scrap or by-products; and 
 d. the costs of originating materials used in the production of the non-
originating material in the territory of a Party. 
 
Article 4.2 
 
Originating Goods
 
 
1. Except as otherwise provided in this Chapter, a good  shall originate in the territory of a Party 
where: 
(a) the good is wholly obtained or produced entirely in the territory of one or both of the 
Parties, as defined in Article 4.1; 
(b) each of the non-originating materials used in the production of the good undergoes 
the applicable change in tariff classification set out in Annex 4 as a result of 
production occurring entirely in the territory of one or both of the Parties, or the good otherwise satisfies the applicable requirem ents of that Annex where no change in 
tariff classification is required, and th e good satisfies all other applicable 
requirements of this Chapter; 
(c) the good is produced entirely in the territory of one or both of the Parties exclusively 
from originating materials pursuant to this Chapter; or 
(d) except for a good provided for in Chapters 61 through 63 of the Harmonised System, 
the good is produced entirely in the territory of one or both of the Parties but one or more of the non-originating materials that are used in the production of the good do not undergo a change in tariff classification because: 
(i) the good was imported into the territory of a Party in an unassembled or a 
disassembled form but was classified as an assembled good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonised System, or 
(ii) the heading for the good provides for and specifically describes both the good 
itself and its parts and is not furthe r subdivided into subheadings, or the 
subheading for the good provides for and specifically describes both the good 
itself and its parts,  
provided that the regional value content of  the good, determined in accordance with 
Article 4.3, is not less than 45 per cent, where the build-down method is used, or 30 WT/REG169/1 
Page 18  
 
per cent, where the build-up method is used and that the good satisfies all other applicable requirements of this Chapter. Howe ver, if the applicable rule of Annex 4, 
where the good is classified, specifies a di fferent amount of regional value-content 
requirement, then such a requirement shall be applied. 
 
2. For the purpose of this Chapter, the production of a good from non-originating materials that 
undergo a change in tariff classification and satisfy other requirements pursuant to Annex 4, shall be 
made entirely in the territory of one or both of th e Parties and the regional value content of the good 
shall be met entirely in the territory of one or both of the Parties. 
3. Notwithstanding the requirements of this Article, goods shall not be considered originating if 
they result exclusively from operations under Article 4.13 carried out in the territory of the Parties, 
when in those operations non-originating materials are used. 
Article 4.3 
 
Regional Value Content
 
 
 When a regional value content is required to determine if a good is originating, each Party 
shall provide that the regional value content of a good may be calculated on the basis of one or the 
other of the following two methods:   Method 1: Build-down method 
 
AV - VNM 
RVC = -------------------- x 100 
AV 
 
 Method 2: Build-up method 
 
VOM 
RVC = -------------- x 100 
AV 
 
 where 
  RVC is the regional value content, expressed as a percentage;   AV  is the adjusted value; 
 
 VNM  is the value of non-originating material s used by the producer in the production of the 
good; and 
  VOM  is the value of originating materials used by the producer in the production of the 
good. 
 
Article 4.4 
 
Intermediate Materials
 
 
 Any self-produced material that  is used in the production of a good may be designated by the 
producer of the good as an intermediate material for the purpose of calculating the regional value 
content of the good under Article 4.3, provided that where the intermediate material is subject to a 
regional value-content requirement, no other self-pr oduced material subject to a regional value- WT/REG169/1 
 Page 19 
 
 
content requirement used in the production of that in termediate material may itself be designated by 
the producer as an intermediate material.   
Article 4.5 
 
Accumulation
 
 1. Originating goods or materials from the territory of a Party incorporated to a good in the 
territory of the other Party shall be considered originating from the territory of the latter Party. 
2. For the purpose of establishing that a good is originating, the producer of a good may 
accumulate one’s production with the production in the territory of one or both of the Parties by one 
or more producers, of materials incorporated in th e good, so that the production of those materials is 
considered as done by that producer, provided that the good complies with the criteria set out in Article 4.2. 
Article 4.6 
 
De Minimis
 
 
1. A good that does not undergo a change in tariff classification pursuant to Annex 4, shall be 
considered originating if the value of all non-orig inating materials used in its production that do not 
undergo change in tariff classification does not exceed eight per cent of the adjusted value of the good 
determined pursuant to Article 4.3. 
2. Paragraph 1 shall not apply to a non-origina ting material used in the production of a good 
provided for in Chapters 1 through 24 of the Ha rmonized System, unless the non-originating material 
is provided for in a different subheading from th at of the good for which the origin is being 
determined under this Article. 
3. A good provided for in Chapters 50 through 63 of the Harmonized System that does not 
originate because certain fibres or yarns used in the production of the component of the good that 
determines the tariff classification of the good do not undergo the applicable change in tariff 
classification set out in Annex 4, shall nonetheless be c onsidered to originate if the total weight of all 
such fibres or yarns in that component is not more than eight per cent of the total weight of that component. 
Article 4.7 
 
Fungible Goods And Materials
 
 1. For purposes of determining whether a good is an originating good: 
(a) where originating and non-originating fungibl e materials are used in the production of 
a good, the determination of whether the materials are originating need not be made through the identification of any specific fungible material, but shall be determined on the basis of any of the inventory management methods set out in the Uniform Regulations; and  
(b) where originating and non-originating fungible goods are commingled and exported 
in the same form, the determination shall be made on the basis of any of the inventory 
management methods set out in the Uniform Regulations. WT/REG169/1 
Page 20  
 
2. Once a decision has been taken on the inventor y management method, this method shall be 
used throughout the fiscal year. 
Article 4.8 
 
Accessories, Spare Parts And Tools
 
 
1. Accessories, spare parts or tools delivered with the good that form part of standard 
accessories, spare parts or tools of the good, shall be considered as originating if the good originates 
and shall be disregarded in determining whethe r all the non-originating materials used in the 
production of the good undergo the a pplicable change in tariff classification set out in Annex 4, 
provided that: 
(a) the accessories, spare parts or tools are no t invoiced separately from the good; and 
(b) the quantities and value of the accessories, sp are parts or tools are customary for the 
good. 
2. If the good is subject to a regional value-c ontent requirement, the value of the accessories, 
spare parts or tools shall be taken into account as or iginating or non-originating materials, as the case 
may be, in calculating the regional value content of the good. 
Article 4.9 
 
Indirect Materials  
 
1. An indirect material shall be considered to be an originating material without regard to where 
it is produced. The value of its materials shall be th e costs registered in th e accounting records of the 
producer of the good. 
2. The value of an indirect material shall be  based on the Generally Accepted Accounting 
Principles applicable in the territory of the Party in which the good is produced.  
Article 4.10 
 
Packaging Materials And Containers For Retail Sale  
  Packaging materials and containers in which a good is packaged for retail sale shall, if 
classified with the good, be disregarded in determ ining whether all the non-originating materials used 
in the production of the good undergo the applicable ch ange in tariff classification set out in Annex 4, 
and, if the good is subject to a regional value-c ontent requirement, the value of such packaging 
materials and containers shall be taken into account  as originating or non-originating materials, as the 
case may be, in calculating the regional value content of the good.  
Article 4.11 
 
Packing Materials And Containers For Shipment
 
  Packing materials and containers in which a good is packed for shipment shall be disregarded 
in determining whether: 
 
(a) the non-originating materials used in the production of the good undergo the 
applicable change in tariff classification set out in Annex 4; and  WT/REG169/1 
 Page 21 
 
 
(b) the good satisfies a regional value-content requirement.  
Article 4.12 
 
Transhipment  
 
 A good shall not be considered to be an or iginating good by reas on of having undergone 
production that satisfies the requirements of Article 4.2, if, subsequent to that production, the good 
outside the territories of the Parties:  
(a) undergoes further production or any operati on, other than unloading, reloading, 
crating, packing and repacking or any ot her operation necessary to preserve it in good 
condition or to transport the good to the territory of a Party; or  
(b) does not remain under the control or obser vation of the customs authority in the 
territory of the non-Party. 
Article 4.13 
 
Non-Qualifying Operations
 
 1. A good shall not be considered to be  originating merely by reason of: 
(a) operations or processes that assure the preservation of goods in good conditions for 
the purpose of transportation or storage; 
(b) operations or processes to facilitate shipment or transportation; or 
(c) operations or processes relating to packag ing or presentation of the goods for their 
respective sale. 
2. Operations or processes under paragraph 1 shall include, inter alia : 
(a) airing, ventilation, drying, refrigeration, freezing; 
(b) cleaning, washing, sieving, shaking, selecti on, classification or grading, picking out, 
mixing, cutting; 
(c) peeling, unshelling or unflaking, grain re moving, removal of bones, crushing or 
squeezing, macerating; 
(d) elimination of dust from broken or damaged pa rts, application of oil, paint for rust 
treatment or other protecting materials thereof; 
(e) testing or calibrations, division of bulk ship ments, assemble into packages, adherent 
of marks, labels or distinctive signs on th e products or packing; packing, unpacking 
or repackaging; 
(f) dilution with water or with any othe r aqueous, ionised or salted solution; 
(g) the simple assembly of goods, formation of sets; 
(h) salifying, sweetening; WT/REG169/1 
Page 22  
 
(i) slaughter of animals; 
(j) disassembly; and 
(k) the combination of one or more of these operations. 
Article 4.14 
 
Interpretation And Application
 
  For purposes of this Chapter:  
(a) the basis for tariff classification in th is Chapter is the Harmonised System; 
(b) where applying subparagraph 1(d) of Article  4.2, the determination of whether a 
heading or subheading under the Harmonised System provides for and specifically describes both a good and its parts shall be made on the basis of the nomenclature of the heading or subheading and the relevant Section or Chapter Notes, in accordance 
with the General Rules for the Interpretation of the Harmonised System; 
(c) in applying the Customs Valuation Agreement for the determination of the origin of a 
good under this Chapter: 
(i) the principles of the Customs Valuati on Agreement shall apply to domestic 
transactions, with such modifications as may be required by the circumstances, as would apply to international transactions; 
(ii) the provisions of this Chapter sh all take precedence over the Customs 
Valuation Agreement to the ex tent of any difference; and 
(iii) the definitions in Article 4.1 shall take  precedence over the definitions in the 
Customs Valuation Agreement to th e extent of any difference; and 
(d) all costs referred to in this Chapter shall be recorded and maintained in accordance 
with the Generally Accepted Accounting Princi ples applicable in the territory of the 
Party in which the good is produced. 
Article 4.15 
 
Consultations And Modifications
 
 1. The Parties shall consult regularly to ensure th at this Chapter is administered effectively, 
uniformly and consistently with the spirit and objec tives of this Agreement, and shall cooperate in the 
administration of this Chapter in accordance with Chapter 5. 
2. A Party that considers that this Chapter requires modification to take into account 
developments in production processes or other matters may submit to the other Party for consideration 
a proposed modification along with supporting rationa le, any studies and any appropriate action that 
needs to be taken under Chapter 5. 
  WT/REG169/1 
 Page 23 
 
 
CHAPTER 5 : CUSTOMS PROCEDURES 
 
Article 5.1 
 
Definitions  
 
 For purposes of this Chapter:   commercial importation  means the importation of a good into the territory of a Party for the 
purpose of sale, or any commercial, industrial or other like use; 
 
 customs administration  means the competent authority that is responsible under the law of a 
Party for the administration of customs laws and regulations;   determination of origin  means a ruling issued as a result of origin verification process 
establishing that a good qualifies as an origin ating good in accordance with Chapter 4;  
  exporter means a person located in the territory of a Party from where a good is exported by 
such a person and required to maintain records in th e territory of that Party regarding exportations of 
the good, pursuant to Article 5.4.5;  
 identical goods  means "identical goods" as defined in the Customs Valuation Agreement;  
  importer means a person located in the territory of a Party where a good is imported by such 
a person and required to maintain records in the te rritory of that Party regarding importation of the 
good, pursuant to Article 5.3.4; 
 
 material means a “material” as defined in Article 4.1;  
  preferential tariff treatment  means the duty rate applicable to an originating good, pursuant 
to the Parties’ respective Tariff Elimination Schedules;  
 producer  means a “producer” as defined in Article 4.1; 
  production  means "production" as defined in Article 4.1; 
  adjusted value means "adjusted value" as defined in Article 4.1; 
 
 Uniform Regulations  means the "Uniform Regulations " established under Article 5.12; 
  used  means "used" as defined in Article 4.1; and 
  value  means value of a good or material for pur poses of calculating customs duties or for 
purposes of applying Chapter 4. 
 
Article 5.2 
 
Certificate And Declaration Of Origin
 
 
1. The Parties shall establish, by the entry into fo rce of this Agreement, a single form for the 
Certificate of Origin and a single form for the Declaration of Origin, which may thereafter be revised by agreement between the Parties.  WT/REG169/1 
Page 24  
 
2. The Certificate of Origin, referred to in paragr aph 1, shall certify that goods that are exported 
from the territory of one Party to the territory of the other Party qualify as originating. The Certificate will have a duration of two years from the date on which the Certificate was signed. 
3. Each Party shall require that a Certificate of Or igin for a good imported into its territory must 
be completed and signed in the English language, for the purpose of  requesting preferential tariff 
treatment. 
4. Each Party shall: 
(a) require an exporter in its territory to comple te and sign a Certificate of Origin for any 
exportation of a good for which an importer may claim preferential tariff treatment on importation of the good into the territory of the other Party;  
(b) provide that where an exporter in its territory is not the producer of the good, the 
exporter may complete and sign a Certificate of Origin on the basis of: 
(i) its knowledge of whether the good qualifies as an originating good; 
(ii) its reasonable reliance on the producer's written representation that the good 
qualifies as an originating good; or 
(iii) the Declaration of Origin referred to in paragraph 1. 
5. The Declaration of Origin referred to in para graph 1 should be comple ted and signed by the 
producers of the good and provided voluntarily to th e exporter. The Declaration will have a duration 
of two years from the date on which it was signed. 
6. Each Party shall provide that a Certificate of Origin that has been completed and signed by an 
exporter in the territory of the other Party is app licable to a single importation of a good into its own 
territory. 
7. For any originating good that is imported into th e territory of a Party on or after the date of 
entry into force of this Agreement, each Party sh all accept a Certificate of Origin that has been 
completed and signed prior to that da te by the exporter of that good.  
8. Each Party shall make all efforts to establish, according to its domestic legislation, that the 
Certificate of Origin completed and signed by the exporter is certified by competent governmental 
authorities or the body empowered by the government. 
Article 5.3 
 
Obligations Regarding Importations
 
 
1. Each Party shall require an importer in its territo ry that claims preferential tariff treatment for 
a good imported into its territory from the territory of the other Party to: 
(a) make a written declaration, in the importati on document established in its legislation, 
based on a valid Certificate of Origin, that  the good qualifies as an originating good; 
(b) have the Certificate of Origin in its possession at the time the declaration, referred to 
in subparagraph (a), is made;  WT/REG169/1 
 Page 25 
 
 
(c) provide, upon request of that Party's custom s administration, a copy of the Certificate 
of Origin; and 
(d) promptly make a corrected declaration and pay any duties owing, where the importer 
has reason to believe that a Certificate of  Origin on which a declaration was based 
contains information that is not correct. When the importer complies with such 
obligations, the importer shall not be penalised. 
2. Each Party shall provide that, when an importer in its territory does not comply with any 
requirement established in this Chapter, the claime d preferential tariff treatment shall be denied for 
the imported goods from the territory of the other Party. 
3. Each Party shall provide that, where a good woul d have qualified as an originating good when 
it was imported into the territory of that Party but no claim for preferential tariff treatment was made 
at that time, the importer of the good may, no later than one year after the date on which the good was 
imported, apply for a refund of any excess duties paid as the result of the good not having been accorded with preferential tariff treatment, on presentation of:  
(a) a written declaration that the good qualified as an originating good at the time of 
importation; 
(b) a copy of the Certificate of Origin; and 
(c) such other documentation relating to the importation of the good as that Party may 
require. 
4. Each Party shall provide that an importer claiming preferential tariff treatment for a good 
imported into its territory maintain in that territory , for five years after the date of importation of the 
good or for such longer period as the Party may specify, such documentation, including a copy of the 
Certificate of Origin, as the Party may require relating to the importation of the good. 
Article 5.4 
 
Obligations Regarding Exportations
 
 
1. Each Party shall provide that an exporter in its te rritory, or a producer in its territory that has 
provided a copy of a Declaration of Origin to that  exporter pursuant to Article 5.2, shall provide a 
copy of the Certificate or Declaration of Origin to its customs administration upon request. 
2. Each Party shall provide that an exporter or a producer in its territory who has completed and 
signed a Certificate or Declaration of Origin, and who has reason to believe that the Certificate or 
Declaration of Origin contains information that is not correct, notifies promptly, in writing, its 
customs administration and all persons, to whom the Ce rtificate or Declaration of Origin was given by 
the exporter or producer, of any change that could affect the accuracy or validity of the Certificate or Declaration, depending on the case. Upon compliance with such an obligation, neither the exporter 
nor the producer shall be penalised for presenting an incorrect Certification or Declaration of Origin. 
3. Each Party shall provide that the customs ad ministration of the exporting Party notify in 
writing to the customs administration of the importing Party regarding the notification mentioned in paragraph 2. 
4. Each Party shall provide that a false certification by an exporter or a producer in its territory 
that a good to be exported to the territory of the ot her Party qualifies as an originating good shall have 
the same legal consequences, with appropriate m odifications, as would apply to an importer in its WT/REG169/1 
Page 26  
 
territory for a contravention of its customs laws  and regulations regarding the making of a false 
statement or representation. Furthermore, each Pa rty may apply such measures as the circumstances 
may warrant where an exporter or a producer in its territory fails to comply with any requirement of 
this Chapter. 
5. Each Party shall provide that an exporter or a pr oducer in its territory that completes and signs 
a Certificate or Declaration of Origin shall maintain  in its territory, for five years after the date on 
which the Certificate or Declaration of Origin w as signed or for such a longer period as the Party may 
specify, all records relating to the origin of a goo d for which preferential tariff treatment was claimed 
in the territory of the other Party,  including records associated with:  
(a) the purchase, cost and value of, and payment for, the good that is exported from its 
territory; 
(b) the purchase, cost and value of, and payment for, all materials, including indirect 
materials, used in the production of the good that is exported from its territory; and 
(c) the production of the good in the form in which the good is exported from its 
territory. 
Article 5.5 
 
Exceptions
 
  Each Party shall provide that a Certificat e of Origin shall not be required for: 
 
(a) a commercial importation of a good whose value does not exceed US$1,000 or its 
equivalent amount in the Party's currency, or such higher amount as it may establish, except that it may require that the in voice accompanying the importation include a 
statement certifying that the good qualifies as an originating good,  
(b) a non-commercial importation of a good w hose value does not exceed US$1,000 or 
its equivalent amount in the Party's cu rrency, or such higher amount as it may 
establish, or 
(c) an importation of a good for which the Party into whose territory the good is imported 
has waived the requirement for a Certificate of Origin, 
provided that the importation does not form pa rt of one or more importations that may 
reasonably be considered to have been undertak en or arranged for the purpose of avoiding the 
certification requirements of Articles 5.2 and 5.3. 
Article 5.6 
 
Invoicing By A Non-Party Operator
 
 
 When a good to be traded is invoiced by a n on-Party operator, the producer or exporter of the 
originating Party shall notify, in the field titled "obs ervations" of the respective Certificate of Origin, 
that the goods subject to declaration shall be invoi ced from that non-Party, and shall notify the name, 
corporate name and address of the operator that  will eventually invoice the operation to its 
destination.  WT/REG169/1 
 Page 27 
 
 
Article 5.7 
 
Confidentiality  
 1. Each Party shall maintain, in accordance with its law, the confidentiality of confidential 
business information collected pursuant to this Ch apter and shall protect such information from 
disclosure that could prejudice the competitive position of the persons providing the information. 
2. The confidential business information collected  pursuant to this Chapter may only be 
disclosed to those authorities respons ible for the administration and en forcement of determinations of 
origin, and customs and revenue matters. 
Article 5.8 
 
Origin Verifications
 
 1. The importing Party may request the exporting Pa rty to provide information regarding the 
origin of any imported good. 
2. For purposes of determining whether a good importe d into its territory from the territory of 
the other Party qualifies as an originating good, the importing Party may, through its customs administration, conduct verification solely by means of: 
(a) written questionnaires and requests for requi red information to an exporter or a 
producer in the territory of the other Party; 
(b) visits to the premises of an exporter or a producer in the territory of the other Party to 
review the records referred to in Article 5.4.5 and observe the facilities used in the 
production of the good, or to that effect any facilities used in the production of the 
materials; or 
(c) such other procedure as the Parties may agree. 
3. The exporter or producer that receives a ques tionnaire pursuant to subparagraph 2(a) shall 
answer and return it within a period of 30 days from the date on which it was received. During this 
period the exporter or producer may, in only one opp ortunity, request in writing to the importing Party 
an extension of the original period, not exceeding 30 days. 
4. In the case the exporter or producer does not return the questionnaire correctly answered 
within the given period or its extension, the im porting Party may deny preferential tariff treatment. 
5. Prior to conducting a verification visit pursuant to subparagraph 2(b), a Party shall, through 
its customs administration: 
(a) deliver a written notification of its intention to conduct the visit to: 
(i) the exporter or producer whose premises are to be visited; 
(ii) the customs administration of the other Party; and 
(iii) if requested by the other Party, the emb assy of the other Party in the territory 
of the importing Party proposi ng to conduct the visit; and WT/REG169/1 
Page 28  
 
(b) obtain the written consent of the exporter or  producer whose premises are to be 
visited. 
6. The notification referred to in paragraph 5 shall include: 
(a) the identity of the customs admini stration issuing the notification; 
(b) the name of the exporter or producer whose premises are to be visited; 
(c) the date and place of the proposed verification visit; 
(d) the object and scope of the proposed verifica tion visit, including specific reference to 
the good that is the subject of the verification; 
(e) the names and titles of the officials performing the verification visit; and 
(f) the legal authority for the verification visit. 
7. Where an exporter or a producer has not given its written consent to a proposed verification 
visit within 30 days after the receipt of notificati on pursuant to paragraph 5, the notifying Party may 
deny preferential tariff treatment to the good that  would have been the subject of the visit. 
8. Each Party shall provide that, upon receipt of notification pursuant to paragraph 5, such an 
exporter or a producer may, within 15 days of  receiving the notification, postpone the proposed 
verification visit for a period not exceeding 60 days from the date of such receipt, or for such longer 
period as the Parties may agree. However, this may be  done in only one opportunity. For this purpose, 
this extension shall be notified to the customs ad ministration of the importing and exporting Parties. 
9. A Party shall not deny preferential tariff treatment to a good based solely on the 
postponement of a verification vi sit pursuant to paragraph 8. 
10. Each Party shall permit an exporter or a producer  whose good is the subject of a verification 
visit by the other Party to designate two observe rs to be present during the visit, provided that: 
(a) the observers do not participate in a manner other than as observers; and 
(b) the failure of the exporter or producer to designate observers shall not result in the 
postponement of the visit. 
11. Each Party shall, through its customs admini stration, where conducting the verification of 
origin involving a regional value content, De Minimis  calculation or any other provision in Chapter 4 
to which Generally Accepted Accounting Principles  may be relevant, apply such principles as are 
applicable in the territory of the Party from which the good was exported. 
12. After the conclusion of a verification, the cu stoms administration conducting the verification 
shall provide the exporter or producer whose good is  the subject of the verification with a written 
determination of whether the good qualifies as an or iginating good, including findings of fact and the 
legal basis for the determination. 
13. Where verifications by a Party indicate a pattern of conduct by an exporter or a producer of 
false or unsupported representations that a good imported  into its territory qualifies as an originating 
good, the Party may withhold preferential tariff treat ment to identical goods exported or produced by 
such a person until that person estab lishes compliance with Chapter 4.  WT/REG169/1 
 Page 29 
 
 
14. Each Party shall provide that where its custom s administration determines that a certain good 
imported into its territory does not qualify as an or iginating good based on a tariff classification or a 
value applied by the Party to one or more material s used in the production of the good, which differs 
from the tariff classification or value applied to the materials by the other Party, the Party's 
determination shall not become effective until it no tifies in writing both the importer of the good and 
the exporter that completed and signed the Certificat e of Origin for the good of its determination. 
15. A Party shall not apply a determination made  under paragraph 14 to an importation made 
before the effective date of the determination where: 
(a) the competent authorities of the other Pa rty has issued an advanced ruling under 
Article 5.9 or any other ruling on the tari ff classification or on the value of such 
materials, or has given consistent treatme nt to the entry of the materials under the 
tariff classification or value at issue, on which a person is entitled to rely; and  
(b) the advanced ruling, other ruling or c onsistent treatment was given prior to 
notification of the determination. 
16. If a Party denies preferential tariff treatment to a good pursuant to a determination made 
under paragraph 14, it shall postpone  the effective date of the denial for a period not exceeding 90 
days where the importer of the good, or the person  who completed and signed the Certificate of 
Origin for the good, demonstrates that it has relie d in good faith to its detriment on the tariff 
classification or value applied to such materials by the customs administration of the other Party.  
Article 5.9 
 
Advanced Rulings On Determinations Of Origin  
 1. Each Party shall, through its competent author ities, provide for the expeditious issuance of 
written advanced rulings, prior to the importation of  a good into its territory, to an importer in its 
territory or an exporter or a producer in the territory of the other Party, on the basis of the facts and 
circumstances presented by such an importer, an e xporter or a producer of the good, concerning: 
(a) whether a good qualifies as an originating good under Chapter 4; 
(b) whether materials imported from a non-Party used in the production of a good 
undergo an applicable change in tariff classification set out in Annex 4 as a result of production occurring entirely in the territory of one or both of the Parties; 
(c) whether a good satisfies a regional value- content requirement under either the 
builddown method or the build-up method set out in Chapter 4; 
(d) for the purpose of determining whether a good satisfies a regional value-content 
requirement under Chapter 4, the appropriate basis or method for value to be applied 
by an exporter or a producer in the territory of the other Party, in accordance with the 
principles of the Customs Valuation Agreemen t, for calculating the adjusted value of 
the good or of the materials used in the production of the good;  
(e) for the purpose of determining whether a good satisfies a regional value-content 
requirement under Chapter 4, the appropr iate basis or method for reasonably 
allocating costs, in accordance with the a llocation methods set out in the Uniform 
Regulations, for calculating the value of an intermediate material; WT/REG169/1 
Page 30  
 
(f) whether a good that re-enters its territory after the good has been exported from its 
territory to the territory of the other Party for repair or alteration qualifies for dutyfree 
treatment in accordance with Article 3.7; or 
(g) such other matters as the Parties may agree. 
2. Each Party shall adopt or maintain procedures for the issuance of advanced rulings, including 
a detailed description of the info rmation reasonably required to pro cess an application for a ruling. 
3. Each Party shall provide that its competent authorities: 
(a) may, at any time during the course of an ev aluation of an application for an advanced 
ruling, request supplemental informati on from the person requesting the ruling; 
(b) shall, after it has obtained all necessary information from the person requesting an 
advanced ruling, issue the ruling within  the periods specified in the Uniform 
Regulations; and 
(c) shall, where the advanced ruling is unfavour able to the person requesting it, provide 
to that person with a full explanation of the reasons for the ruling. 
4. Subject to paragraph 6, each Party shall apply an advanced ruling to importations into its 
territory of the good for which the ruling was requested , beginning on the date of its issuance or such 
a later date as may be specified in the ruling. 
5. Each Party shall provide to any person requ esting an advanced ruling the same treatment, 
including the same interpretation and applicatio n of the provisions of Chapter 4 regarding a 
determination of origin, as it provided to any othe r person to whom it issued an advanced ruling, 
provided that the facts and circumstances are identical in all material respects. 
6. The issuing Party may modify or revoke an advanced ruling: 
(a) if the ruling is based on an error: 
(i) of fact; 
(ii) in the tariff classification of a good or a material that is the subject of the 
ruling; 
(iii) in the application of a regional value- content requirement under Chapter 4; or 
(iv) in the application of the rules for determining whether a good that re-enters 
its territory after the good has been export ed from its territory to the territory 
of the other Party for repair or alteration qualifies for duty-free treatment under Article 3.7; 
(b) if the ruling is not in a ccordance with an interpreta tion agreed by the Parties 
regarding Chapter 3 or Chapter 4; 
(c) if there is a change in the material facts or circumstances on which the ruling is 
based; 
(d) to conform with a modification of Chapter 3,  Chapter 4, this Ch apter or the Uniform 
Regulations; or  WT/REG169/1 
 Page 31 
 
 
(e) to conform with a judicial or administrative  decision or a change in its domestic law. 
7. Each Party shall provide that any modificati on or revocation of an advanced ruling is 
effective on the date on which the modification or re vocation is issued, or on such a later date as may 
be specified therein, and shall not be applied to im portations of a good that have occurred prior to that 
date, unless the person to whom the advanced ruling was issued has not acted in accordance with its 
terms and conditions. 
8. Notwithstanding paragraph 7, the issuing Party shall postpone the effective date of such 
modification or revocation for a period not exceed ing 90 days where the person to whom the 
advanced ruling was issued demonstrates that it has relied in good faith to its detriment on that ruling. 
9. Each Party shall provide that where its co mpetent authorities examines the regional value 
content of a good for which it has issued an advanc ed ruling pursuant to subparagraphs 1(d), (e) and 
(f), it shall evaluate whether: 
(a) the exporter or producer has complied with the terms and conditions of the advanced 
ruling; 
(b) the exporter's or producer's operations are consistent with the material facts and 
circumstances on which the advanced ruling is based; and 
(c) the supporting data and computations used in applying the basis or method for 
calculating value or allocating cost were correct in all material respects. 
10. Each Party shall provide that where its compet ent authority determines that any requirement 
in paragraph 9 has not been satisfied, it may modify or revoke the advanced ruling as the circumstances may warrant. 
11. Each Party shall provide that, where the pers on to whom an advanced ruling was issued 
demonstrates that it used reasonable care and acted in good faith in presenting the facts and 
circumstances on which the ruling was based, a nd where the competent authority of a Party 
determines that the ruling was based on incorrect  information, the person to whom the ruling was 
issued shall not be subject to penalties. 
12. Each Party shall provide that where it issu es an advanced ruling to a person that has 
misrepresented or omitted material facts or circ umstances on which such a ruling is based or has 
failed to act in accordance with the terms and c onditions of the ruling, the Party may apply such 
measures as the circumstances may warrant. 
13. The Parties shall provide that the person to whom the advanced ruling was issued may use it 
only while the material facts or circumstances that were the basis of its issuance are still present. In 
this case, the person to whom the advanced ruli ng was issued may present the necessary information 
for the issuing authority to pr oceed pursuant to paragraph 6. 
14. A good that is subject to an origin verification process or any instance of review or appeal in 
the territory of one of the Parties may not undergo an advanced ruling. WT/REG169/1 
Page 32  
 
Article 5.10 
 
Review And Appeal
 
 1. Each Party shall grant substantially the same right s of review and appeal of determinations of 
origin and advanced rulings by its customs administ ration, as it provides to importers in its territory, 
to any person: 
(a) who completes and signs a Certificate of Or igin for a good that has been the subject 
of a determination of origin pursuant to Article 5.8.12; or 
(b) who has received an advanced ruling pursuant to Article 5.9. 
2. Each Party shall provide that the rights of revi ew and appeal referred to in paragraph 1 shall 
include access to: 
(a) at least one level of administrative review independent of the official or office 
responsible for the determ ination under review; and 
(b) in accordance with its domestic law, judicial or quasi-judicial review of the 
determination or decision taken at the final level of administrative review. 
Article 5.11 
 
Penalties
 
 1. Each Party shall maintain measures imposing cr iminal, civil or administrative responsibilities 
for violations of its laws and regul ations relating to this Chapter. 
2. Nothing in Articles 5.3.1(d), 5.3.2, 5.4.2, 5.8.4,  5.8.7 or 5.8.9 shall be construed to prevent a 
Party from applying such measures as the circumstances may warrant. 
Article 5.12 
 
Uniform Regulations
 
 1. The Parties shall establish and implement, through their respective laws or regulations, by the 
date of entry into force of this Agreement, or at any time thereafter upon agreement of the Parties, the 
Uniform Regulations regarding the interpretation,  application and administration of Chapter 3, 
Chapter 4, this Chapter and other matt ers as may be agreed by the Parties. 
2. As of the entry into force of the Unifor m Regulations, each Party shall implement any 
modification of or addition to the Uniform Regulatio ns no later than 180 days after the Parties agree 
on such modification or addition, or such other period as the Parties may agree. 
Article 5.13 
 
Cooperation
 
 1. Each Party shall notify the other Party of the following determinations, measures and rulings, 
including to the greatest extent practicable t hose that are prospective in application:   WT/REG169/1 
 Page 33 
 
 
(a) a determination of origin issued as the result of a verification conducted pursuant to 
Article 5.8, once the instances of review and appeal pursuant to Article 5.10 have been exhausted; 
(b) a determination of origin that the Party is aware is contrary to: 
(i) a ruling issued by the cust oms administration of the other Party with respect 
to the tariff classification or value of a good, or of materials used in the 
production of a good, or the reasonable a llocation of costs where calculating 
the value of a good, that is the subject of a determination of origin; or  
(ii) consistent treatment given by the cust oms administration of the other Party 
with respect to the tariff classification or value of a good, or of materials used 
in the production of a good, or the reasonable allocation of costs where 
calculating the value of a good, that is the subject of a determination of origin; 
(c) a measure establishing or significantly modi fying an administrative policy that is 
likely to affect future determinations of origin; and 
(d) an advanced ruling, or a ruling modifying or  revoking an advanced ruling, pursuant to 
Article 5.9. 
2. The Parties shall cooperate: 
(a) in the enforcement of their respective customs-related laws or regulations 
implementing this Agreement, and under any customs mutual assistance agreement or 
other customs-related agreement to which they are party;  
(b) to the extent practicable and for purposes of  facilitating the flow of trade between 
them, in such customs-related matters as the collection and exchange of statistics 
regarding the importation and export ation of goods, the harmonisation of 
documentation used in trade, the standardi sation of data elements, the acceptance of 
an international data syntax a nd the exchange of information; 
(c) to the extent practicable, in the stor age and transmission of customs-related 
documentation; 
(d) in the origin verification process of a good, for which the customs administration of 
the importing Party may request the other Party’s customs administration to cooperate in this process of verification in its own territory; 
(e) to search for a certain mechanism with th e purpose of detecting and preventing the 
illicit shipment of goods arriving from one of the Parties or from a non-Party; and 
(f) to jointly organise training programmes in  customs related issues, which should 
include training for customs officials as well as users that directly participate in customs procedures. WT/REG169/1 
Page 34  
 
Article 5.14 
 
Review
 
  In the second year from the date of entry into  force of this Agreement, the Parties shall 
examine and revise, if deemed necessary by the Pa rties, the system regarding the Certificate or 
Declaration of Origin under this Chapter.   
CHAPTER 6 : SAFEGUARD MEASURES 
 
Article 6.1 
 
Safeguard Measures
 
 
1. Both Parties maintain their rights and ob ligations under Article XIX of GATT and the 
Agreement on Safeguards, which is part of the WTO. 
2. Actions taken pursuant to Article XIX of GA TT and Agreement on Safeguards shall not be 
subject to Chapter 19 of this Agreement. 
 
CHAPTER 7 : ANTI-DUMPING AND COUNTERVAILING DUTY MATTERS 
 
Article 7.1 
 
Anti-Dumping And Countervailing Duty Matters  
 
1. The Parties maintain their rights and obligatio ns under Article VI of GATT, the Agreement 
on Implementation of Article VI of GATT (“Ag reement on Antidumping”) and the Agreement on 
Subsidies and Countervailing Measures, which are part of the WTO Agreement.  
2. Antidumping actions taken pursuant to Artic le VI of GATT and the Agreement on 
Antidumping, or countervailing actions taken pursuan t to Article VI of GATT and the Agreement on 
Subsidies and Countervailing Measures shall not be  subject to Chapter 19 of this Agreement. 
 
CHAPTER 8 : SANITARY AND PHYTOSANITARY MEASURES 
 
Article 8.1 
 
Definitions  
  For purposes of this Chapter, the definitions  and terms established under the following shall 
be applied:  
(a) Agreement on the Application of Sanitary an d Phytosanitary Measures, which is part 
of the WTO Agreement (SPS Agreement); 
(b) Office International des Epizooties (OIE); 
(c) International Plant Protection Convention (IPPC); and 
(d) Codex Alimentarius Commission (CODEX).  WT/REG169/1 
 Page 35 
 
 
Article 8.2 
 
General Provisions  
 1. This Chapter applies to all sanitary and phyto sanitary measures, which may, directly or 
indirectly, affect trade between the Parties. 
2. The Parties shall, through mutual  cooperation, facilitate agricultural, fishing and forest trade 
without such trade posing a sanitary or phytosanita ry risk, and agree to prevent the introduction or 
spread of pests or diseases, and to enhance plant and animal health and food safety. 
3. The framework of rules and disciplines that guide the adoption and enforcement of the 
sanitary and phytosanitary measures included in this Chapter is deemed to be consistent with the SPS 
Agreement. 
4. Any other sanitary or phytosanitary matter whic h is not described in this Chapter shall be 
dealt with in accordance with the SPS Agreement. 
Article 8.3 
 
Rights Of The Parties
 
  The Parties may, in accord ance with the SPS Agreement: 
 
(a) adopt, maintain or apply any sanitary or  phytosanitary measure whenever it is 
necessary for the protection of human, animal or  plant life or health in their territories 
in accordance with this Chapter; and 
(b) apply their sanitary or phyto sanitary measures to the exte nt necessary to achieve an 
appropriate level of protection. 
Article 8.4 
 
Obligations Of The Parties
 
  Each Party shall ensure that any sanitary or phytosanitary measure that it adopts, maintains or 
applies:  
(a) is neither applied in a manner that constitutes a disguised restriction on trade, nor has 
the purpose or the effect of creating unnecessary obstacles to trade between the Parties; 
(b) is based on scientific principles and is not  maintained without sufficient scientific 
evidence, except as provided for in Ar ticle 5.7 of the SPS Agreement; and  
(c) does not arbitrarily or unjustifiably discr iminate between its goods and similar goods 
of the other Party, or between goods of th e other Party and similar goods of any other 
country, where identical or similar conditions exist. WT/REG169/1 
Page 36  
 
Article 8.5 
 
International Standards And Harmonization
 
 1. Without reducing the level of protection of human , animal or plant life or health, each Party 
shall base its sanitary and phytosanitary measures on  relevant international standards, guidelines or 
recommendations, where they exist, with a view to seeking harmonization. 
2. Notwithstanding paragraph 1, the Parties may adopt a sanitary or phytosanitary measure 
offering a level of protection other than the level th at would be achieved through a measure based on 
an international standard, guideline or recommendati on, including a more stringent measure than the 
foregoing, if there is a scientific justification, or as a consequence of the level of sanitary or 
phytosanitary protection the Party determines to be appropriate in accordance with the relevant 
provisions of Article 5 of the SPS Agreement. 
3. For purposes of achieving a higher degree of harmonization, the Parties shall, to the greatest 
extent possible, cooperate in the developmen t of international standards, guidelines and 
recommendations to all aspects of sanitary and phyt osanitary measures, and follow the standards, 
guidelines and recommendations set by the following organizations: 
(a) on plant health issues, the IPPC; 
(b) on animal health issues, the OIE; and 
(c) on food safety issues, the CODEX. 
4. For matters not covered by the international or ganizations listed in pa ragraph 3, the Parties 
may consider, as agreed by the Parties, the standards, guidelines and recommendations of other 
relevant international organizations of which both Parties are members. 
Article 8.6 
 
Equivalence
 
 
1. Each Party shall accept the sanitary and phyt osanitary measures of the other Party as 
equivalent, even if these measures differ from its own measures, if the exporting Party objectively 
demonstrates to the other Party that its measures achie ve the other Party’s appropriate level of sanitary 
or phytosanitary protection. 
2. For purposes of ensuring that sanitary and phytosanitary measures of the exporting Party 
consistently meet the importing Party’s requireme nts, the exporting Party shall, upon request, provide 
the importing Party with reasonable access to its territory for the verification of its systems or procedures of inspection, testing and other relevant procedures. 
Article 8.7 
 
Risk Assessment And Determination Of Appropriate  Sanitary And Phytosanitary Level Of Protection
 
 1. The Parties shall ensure that their sanitary a nd phytosanitary measures are, as appropriate to 
the circumstances, based on an assessment of the risks to human, animal or plant life or health, taking 
into account relevant risk ass essment guidelines and techniques developed by the relevant 
international organizations.  WT/REG169/1 
 Page 37 
 
 
2. The Parties shall, in assessing risks and determin ing a sanitary or phytosanitary measure, take 
into account available scientific evid ence and other factors, such as: 
(a) the prevalence of pests or diseases; 
(b) the existence of pest- or disease-free areas; 
(c) the relevant ecological and environmental conditions; 
(d) the effectiveness of eradication or control programs; 
(e) the structure and organization of sanitary and phytosanitary services; and 
(f) the control, monitoring, diagnosis and other procedures ensuring the safety of the 
product. 
3. In assessing risks to animal or plant life or hea lth and determining the measure to be applied 
for achieving the appropriate level of protection from su ch risks, the Parties shall take into account the 
following relevant economic factors: 
(a) the potential damage in terms of loss of pr oduction or sales in the event of the entry, 
establishment or spread of a pest or disease; 
(b) the cost of control or eradication in the territory of the importing Party; and 
(c) the relative cost-effectiveness of alte rnative approaches to limiting risks. 
4. The Parties shall, in establishing their appropria te levels of protection, take into account the 
objective of minimizing negative trade effects and sha ll, with the purpose of achieving consistency in 
the application of such levels of protection, avoid ar bitrary or unjustifiable distinctions that may result 
in discrimination or constitute a disguised r estriction on the trade between the Parties. 
5. Where a Party determines that available scientific  information is insufficient, it may adopt a 
provisional sanitary or phytosanitary measure on the b asis of available relevant information, including 
information from relevant intern ational organizations and from sanitary or phytosanitary measures of 
the other Party and any other countries. The Party shall, once it has the information sufficient to complete the assessment, complete its assessment and, where appropriate, review the provisional 
sanitary or phytosanitary measure within a reasonable period of time. 
Article 8.8 
 
Adaptation To Regional Conditions, In cluding Pest- Or Disease-Free Areas 
 
And Areas of Low Pest or Disease Prevalence  
 
1. The Parties shall adapt its sanitary or phytosanita ry measures relating to animal or plant pest 
or disease to the sanitary or phytosanitary characteris tics of the area of origin and destination of the 
goods. When assessing the characteristics of an area, the Parties shall take into account, inter alia , the 
level of prevalence of specific diseases or pests, the existence of eradication or control programmes, 
and appropriate criteria or guidelines, which ma y be developed by the relevant international 
organizations. 
2. The Parties shall recognize, in particular accord ing to relevant international standards, the 
concepts of pest- or disease-free areas or areas of  low pest or disease prevalence. When determining WT/REG169/1 
Page 38  
 
such areas, the Parties shall consider factor s, such as geographical location, ecosystems, 
epidemiological surveillance, and the effectiveness of  sanitary or phytosanitary controls in that area. 
3. The Party declaring that an area in its territory  is free from or low prevalence of a specific 
pest or disease shall provide the n ecessary evidence thereof in order to demonstrate such a condition 
objectively and to the satisfaction of  the other Party, and give assurances that the area shall remain as 
such based on protection measures adopted by  the authorities responsible for sanitary and 
phytosanitary services. 
4. The Party interested in obtaining the recogniti on of a pest- or disease-free area or areas of low 
pest or disease prevalence shall make the request, a nd provide the relevant sc ientific and technical 
information to the other Party. For this purpose, the requesting Party shall provide reasonable access 
to its territory to the other Party for inspec tion, testing and other relevant procedures. 
5. If the request for recognition is rejected, the rej ecting Party shall provide the technical reasons 
for its decision in writing. 
Article 8.9 
 
Control, Inspection And Approval Procedures
 
 1. The Parties shall, in accordance with this Chapter, apply the provisions in Annex C of the 
SPS Agreement in relation to control, inspecti on or approval procedures, including systems for 
approving the use of additives or for establishing le vels of tolerance for contaminants in food, 
beverages or feedstuffs. 
2. The importing Party may verify whether the im ported animals, plants and other related 
products are consistently in compliance with its sanitary and phytosanitary requirements. The Parties 
shall facilitate proceedings for such verification. 
Article 8.10 
 
Transparency
 
 1. Each Party shall notify through its competent authorities, modification of a sanitary or 
phytosanitary measure and provide the related in formation in accordance with the provisions in 
Annex B of the SPS Agreement. 
2. In addition, to ensure the protection of human, anim al or plant life or health in the other Party, 
each Party shall notify: 
(a) changes or modifications to sanitary and phytosanitary measures having a significant 
effect on trade between the Parties, at least 60 days before the effective date of the new provision, to allow for observations from the other Party. The 60-day period shall not apply to emergency situati ons, as established in Annex B of the SPS 
Agreement; 
(b) changes occurring in the animal health fi eld, such as the appearance of exotic 
diseases and those in List A of the OIE, w ithin 24 hours following their provisional 
diagnosis; 
(c) changes occurring in the phytosanitary field,  such as the appearance of a quarantine 
pest and spread of a pest under official control, within 24 hours following verification 
of the pest;  WT/REG169/1 
 Page 39 
 
 
(d) food control emergency situations where there is a clearly identified risk of serious 
adverse health effects associated with th e consumption of certain food, within 24 
hours of the identification of the risk; and 
(e) discoveries of epidemiological importance a nd significant changes related to diseases 
and pests not included in subparagraphs 2(b) and (c) that may affect trade between 
the Parties, within a maximum period of ten days following the verification of such 
diseases and pests. 
Article 8.11 
 
Committee On Sanitary And Phytosanitary Measures  
 
1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Measures 
(“Committee”), comprising representatives of each Party, who are responsible for sanitary and 
phytosanitary issues in the fields of anim al and plant health, food safety and trade. 
2. The Committee shall be set up not later than 30  days after the entry into force of this 
Agreement. 
3. The Committee shall carry out the functions nece ssary to implement the provisions of this 
Chapter, including, but not limited to: 
(a) coordinating the application of the provisions of this Chapter; 
(b) facilitating consultations on specific matters  related to sanitary or phytosanitary 
measures; 
(c) establishing and determining the scope and mandate of the sub-committees; 
(d) promoting technical cooperation between th e Parties, including cooperation in the 
development, adoption and enforcement of sanitary and phytosanitary measures; and 
(e) monitoring the compliance with the provisions of this Chapter. 
4. The Committee shall establish, if the need arises  and the Parties so agree, the following sub-
committees: Sub-Committees on Animal Health, Plant Protection and Food Safety. The members of 
these sub-committees shall be designated by the re levant authorities in their respective fields. 
5. The sub-committees shall carry out the following functions, including, but not limited to:  
(a) preparing terms of reference for their activ ities within the scope of their competence 
and informing results thereof to the Committee; 
(b) concluding specific agreements on ma tters of interest, involving higher 
technicaloperating details, to be submitted to the Committee; and 
(c) establishing expeditious informa tion exchange mechanisms to deal with consultations 
between the Parties. 
6. The Committee shall meet once every two years, except as otherwise agreed. If an additional 
meeting is requested by a Party, it will be held in  the territory of the other Party. The sub-committees 
shall meet, upon request of a Party. The meetings ma y also be held by telephone, video conference or 
other means, upon the agreement of both Parties. WT/REG169/1 
Page 40  
 
7. The Committee shall report annually to the Commission on the implementation of this 
Chapter. 
Article 8.12 
 
Technical Consultations
 
 
1. A Party may initiate consultations with the other Party if uncertainty arises with regard to the 
application or interpretation of the content of a sanitary or phytosanitary measure under this Chapter. 
2. Where a Party requests consultations and so  notifies the Committee, the Committee shall 
facilitate consultations, and may refer the matter at issue to an ad hoc  working group or another 
forum, for providing non-binding technical assi stance or recommendations to the Parties. 
3. A Party asserting that the interpretation or app lication of a sanitary or phytosanitary measure 
of the other Party is inconsistent with the provisi ons of this Chapter shall bear the burden to prove 
such inconsistency. 
4. Where the Parties, pursuant to this Article, have carried out consultations without reaching 
satisfactory results, such consultati ons, if so agreed by the Parties, shall constitute consultations under 
Article 19.4. 
 
CHAPTER 9 : STANDARDS-RELATED MEASURES 
 
Article 9.1 
 
Definitions  
  For purposes of this Chapter:  
 authorization procedure  means any registration, notification or other mandatory 
administrative procedure granting authorization for a good to be produced, marketed or used for a 
stated purpose or under stated conditions;   conformity assessment procedure  means any procedure used, directly or indirectly, to 
determine compliance with the provisions on techni cal regulations or standards. This includes, inter 
alia, sampling procedures, testing and inspection,  evaluation, verification and assurance of 
conformity, registration, accreditation and approv al either separately or in combination; 
  international standard  means a standards-related measure, or any other guideline or 
recommendation, adopted by an international standa rdizing body and made available to the public; 
 
 international standardizing body  means a standardizing body whose membership is open to 
the relevant bodies of at least all the parties to  the WTO Agreement, including the International 
Organization for Standardization, the Interna tional Electrotechnical Commission, the Codex 
Alimentarius Commission, the World Health Organi zation, the Food and Agriculture Organization of 
the United Nations, the International Telecommunica tion Union, and any other body that the Parties 
designate; 
  legitimate objective  is to guarantee national security requirements, the prevention of 
deceptive practices, protection of human health or safety, animal or plant life or health, or the environment and any other objective that shall be  determined by the Standards-Related Measures 
Committee;  WT/REG169/1 
 Page 41 
 
 
 make compatible  means to bring different standards-related measures of the same scope 
approved by different standardizing bodies to a level su ch that they are either identical or modified to 
fulfill the same purpose, or have the effect of permit ting that goods are used in place of one another or 
fulfill the same purpose;  
 standard  means a document, approved by a recognized body, that provides for common and 
repeated use, rules, guidelines or characteris tics for goods or related processes and production 
methods, with which compliance is not mandatory. It  may also include or deal exclusively with 
terminology, symbols, packaging, marking and la belling requirements applicable to a good, process or 
production method; 
 
 standardizing body  means a body having recognized activities in standardization; 
  standards-related measures  means a standard, technical regulation or conformity 
assessment procedure; and 
 
 technical regulation  means a document which lays down the product characteristics or their 
related processes and production me thods, including the applicable administrative provisions, with 
which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements applic able to a product, process, or production method. 
 
Article 9.2 
 
General Provision
 
  The Parties shall apply the provisions set forth in this Chapter in addition to the provisions 
established by the WTO Agreement. 
 
Article 9.3 
 
Scope And Coverage
 
 
1. This Chapter applies to standards-related meas ures of the Parties that may, directly or 
indirectly, affect the trade of goods between the Part ies and to measures of the Parties relating to such 
measures. 
2. Provisions included in this Chapter shall not  apply to sanitary and phytosanitary measures 
governed by Chapter 8. Technical specifications prepared by governmental bodies for production or 
consumption requirements of governmental bodies are not subject to the provisions of this Chapter 
but are addressed in Chapter 15. 
Article 9.4 
 
Basic Rights And Obligations  
 Right to Take Standards-Related Measures 
 
1. Each Party may prepare, adopt, apply or mainta in any standards-related measure to ensure 
that each Party is able to pursue its legitimat e objectives, as well as measures ensuring enforcement 
and compliance with these standardizing measures, including approval procedures. WT/REG169/1 
Page 42  
 
Extent of Obligation 
 
2. Each Party shall comply with the applicable  provisions of this Chapter and adopt the 
appropriate measures to ensure its observance, as well as those measures of non-governmental standardizing bodies duly accredited in its territory. 
3. Each Party shall, in respect of its standards -related measures, accord to goods of the other 
Party: 
(a) national treatment; and 
(b) treatment no less favorable than the most fa vorable treatment that the Party accords to 
similar goods of any other non-Party. 
Unnecessary Obstacles 
 
4. No Party may prepare, adopt, maintain or apply any standards-related measure with a view to 
or with the effect of creating unnecessary obstacles to trade between the Parties. To that end, 
standards-related measures shall not be more trade restrictive th an necessary to achieve a legitimate 
objective, taking account of the risks that non-fulf illment would create. An unnecessary obstacle to 
trade shall not be deemed to be created where: 
(a) the demonstrable purpose of the measure is to achieve a legitimate objective; 
(b) the measure complies with an international standard; and 
(c) the measure does not operate to exclude goods of the other Party that meet that 
legitimate objective. 
Use of International Standards 
 
5. Each Party shall use, as a basis for its own standards-related measures, the relevant 
international standards in force or whose completi on is imminent, except where such standards would 
be an ineffective or inappropriate m eans to fulfill its legitimate objectives. 
Article 9.5 
 
Compatibility
 
 1. Recognizing the crucial role of standards-rela ted measures in achieving legitimate objectives, 
the Parties shall, in accordance w ith this Chapter and the WTO Agre ement, work jointly to enhance 
the level of safety and of protection of human, anim al and plant life and health, the environment and 
consumers.  
2. The Parties shall, to the greatest extent practi cable, work to make compatible their respective 
standards-related measures, without reducing the level of safety or of protection of human, animal or 
plant life or health, the environment or consumers, without prejudice to the rights granted to either 
Party under this Chapter, and taking into account international standardization activities so as to 
facilitate the trade of a good between the Parties.  
3. A Party shall, upon request of the other Party,  seek, as far as possible and through appropriate 
measures, to promote the compatibility of a specific st andard-related measure that is maintained in its 
territory with the standards-related measures main tained in the territory of the other Party.  WT/REG169/1 
 Page 43 
 
 
4. A Party shall, upon request in writing from the othe r Party explicitly stating its reasons for the 
request, consider favorably the possibility of accepti ng standards-related measures of the other Party 
as equivalent to its own, even if they differ from its  own, provided that, in coop eration with that Party, 
it is convinced that such measures comply adeq uately with the legitimate objectives of its own 
measures. 
5. A Party shall provide to the other Party, upon request, its reasons in writing for not accepting 
standards-related measures as e quivalent under paragraph 4. 
Article 9.6 
 
Conformity Assessment Procedures  
 
1. Conformity assessment procedures of the Parties shall be prepared, adopted and applied in a 
manner that provides access to similar goods of the territory of the other Party on terms no less favorable than those granted to similar goods of the Party or any other country in a comparable 
position. 
2. Each Party shall, with respect to its conf ormity assessment procedures, ensure that:  
(a) such procedures are initiated and complete d as expeditiously as possible and in a non-
discriminatory order; 
(b) the normal processing period for each one of such procedures is published or the 
estimated processing period is communicated to the applicant upon request; 
(c) the competent body or authority: 
(i) upon receipt of an application, promptly examines the completeness of the 
documentation and informs the applicant in a precise and complete manner of 
any deficiency; 
(ii) transmits to the applicant as soon as po ssible the results of the assessment in 
a precise and complete manner, so that  the applicant may take any necessary 
corrective action; 
(iii) even if the application is deficient,  proceeds as far as practicable with the 
conformity assessment if so requested by the applicant; and  
(iv) informs the applicant, on request, of the status of the application and the 
reasons for any delay; 
(d) it limits the information the applicant is required to supply to what is necessary to 
conduct the conformity assessment procedure and to determine appropriate fees; 
(e) the confidential nature of information ar ising from, or supplied in connection with 
such procedures for a good of the other Part y is respected in the same manner as the 
treatment accorded to a good of that Party,  so as to protect legitimate commercial 
interests; 
(f) any fee it imposes for conducting the conformity assessment procedure of a good of 
the other Party is no higher than is equita ble in relation to any such fee imposed for 
like goods of that Party, taking into account communication, transportation and other WT/REG169/1 
Page 44  
 
related costs derived from the different loca tions of the facilities of the applicant and 
those of the conformity assessment body; 
(g) the location of facilities at which confor mity assessment procedures and sampling 
selection procedures are conducted does not  cause unnecessary inconvenience to the 
applicant or its agents; 
(h) whenever the specifications for a good are modified subsequent to a determination 
that the good conforms to the applicab le technical regulation or standard, the 
conformity assessment procedure of the modified good is limited to what is necessary to determine that the good continues to conform to the technical regulation or 
standard; and 
(i) there is a procedure in place to review complaints concerning the operation of a 
conformity assessment procedure and that corrective action is taken when a complaint is justified. 
3. Each Party shall give positive consideration to  a request by the other Party to negotiate 
agreements for the mutual recognition of the r esults of their respective conformity assessment 
procedures. 
4. Each Party shall, wherever possible, accep t the results of the conformity assessment 
procedures conducted in the territory of the other Party, provided that the procedure offers a 
satisfactory assurance, equivalent to that provi ded by a procedure it conducts or a procedure 
conducted in its territory, the results of which it acce pts, and that the relevant good complies with the 
applicable technical regulation or  standard adopted or maintained in that Party's territory. 
5. Prior to accepting the results of a conformity assessment procedure pursuant to paragraph 4, 
and in order to enhance confidence in the perm anent reliability of each one of the conformity 
assessment results, the Parties may consult on matte rs such as the technical competence of the 
conformity assessment bodies involved, including veri fied compliance with relevant international 
standards through means such as accreditation. 
6. Recognizing that it should be to the mutual advantage of the Parties, each Party shall accredit, 
approve, or otherwise recognize conformity assessment bodies in the territory of the other Party, on terms no less favorable than those accorded to  conformity assessment bodies in its territory. 
Article 9.7 
 
Authorization Procedures
 
 
 Each Party shall apply, with such modifications  as may be necessary, the relevant provisions 
of Article 9.6.2, to its authorization procedures.  
Article 9.8 
 
Transparency
 
 1. Each Party shall keep a list of its standards-re lated measures and make them available to the 
other Party, upon request, and ensure that where fu ll copies of documents are requested by the other 
Party or by interested persons of the other Party, they are supplied at the same price, apart from the 
actual cost of delivery, as the price for domestic purchase.  WT/REG169/1 
 Page 45 
 
 
2. Where a Party allows non-governmental persons in its territory to participate in the process of 
preparation of standards-related measures, it sha ll also allow non-governmental persons from the 
territory of the other Party to participate. In such participation, nongovernmental persons from the 
territory of the other Party shall be allowed to express their opinions  and comments on the preparation 
of the standards-related measure. 
Article 9.9 
 
Limitations On The Provision Of Information  
  Nothing in this Chapter shall be construed to  require a Party to furn ish any information the 
disclosure of which they consider is co ntrary to its essential security interests. 
 
Article 9.10 
 
Committee On Standards-Related Measures
 
 
1. The Parties hereby establish the Committee on Standards-Related Measures, comprising 
representatives of each Party, pursuant to Annex 9.10. 
2. The Committee's functions shall include: 
(a) monitoring the implementation, enforcement and administration of this Chapter; 
(b) considering any specific matter relating to  the standards-related and metrology-
related measures of the other Party or any other related measures, whenever a Party 
has any doubts on the interpretation or app lication of this Chapter, including the 
provision of non-mandatory technical advice and recommendations; 
(c) facilitating the process by which the Parties make compatible their standards-related 
and metrology-related measures; 
(d) providing a forum for the Parties to consult on issues relating to standards-related and 
metrology-related measures; 
(e) fostering technical cooperation activities between the Parties; 
(f) enhancing cooperation on the development and strengthening of standardization 
systems, technical regulations, confor mity assessment procedures and metrology 
systems of the Parties; 
(g) reporting annually to the Commission on the implementation of this Chapter; 
(h) facilitating the process of negotiating agreem ents for mutual recognition between the 
Parties; and 
(i) establishing sub-committees as deemed necessary and determining the scope of 
action and mandate of such sub-committees. 
3. The Committee shall meet as mutually agreed but not less than once a year. The meetings 
may also be held by telephone, video conference or  other means, upon the agreement of the Parties. WT/REG169/1 
Page 46  
 
Article 9.11 
 
Technical Cooperation
 
 1. Each Party shall, upon request of the other Party, provide: 
(a) information and technical assistance on mutually agreed terms and conditions to 
enhance the standards-related measures of that Party, as well as its activities, processes and systems in this matter; and 
(b) information on its technical cooperation programs linked to standards-related 
measures in specific areas of interest. 
2. Each Party shall encourage standardizing bodi es in its territory to cooperate with the 
standardizing bodies in the territories of the other Party, as appropriate, in standardizing activities, 
such as through membership in international standardizing bodies. 
3. Each Party shall, to the fullest extent practicab le, inform the other Party of the international 
agreements or programs it has executed on standards-related measures. 
 
ANNEX 9.10 
 
Members Of The Standards-Related Measures Committee
 
 1. For purposes of Article 9.10, members of the Committee will be representatives from: 
(a) in the case of Chile, the Ministerio de Economía, through the Departamento de 
Comercio Exterior, or its successor; and 
(b) in the case of Korea, the Ministry of  Commerce, Industry and Energy, through a 
department responsible for standards -related measures, or its successor. 
2. Each member shall invite, as it deems necessary or upon request of the other Party, other 
relevant government organizations responsible for st andards-related measures, to participate in the 
Committee. 
 
PART III : INVESTMENT, SERVICES AND RELATED MATTERS 
 
CHAPTER 10 : INVESTMENT 
 
Section A - Definitions
 
 
Article 10.1 
 
Definitions  
  For purposes of this Chapter:   disputing investor  means an investor that makes a claim under Section C;   
 
 disputing parties  means the disputing investor and the disputing Party;  
  WT/REG169/1 
 Page 47 
 
 
 disputing Party means a Party against which a claim is made under Section C;  
  disputing party  means the disputing investor or the disputing Party; 
  enterprise  means an "enterprise" as defined in Artic le 2.1, and a branch of an enterprise; 
  
 enterprise of a Party means an enterprise constituted or organized under the law of a Party 
and a branch, located in the territory of a Pa rty and carrying out business activities there; 
  financial institution  means any natural person or enterprise of a Party wishing to supply or 
supplying financial services under the law of the Party in whose territory it is located; 
  G7 currency means the currency of Canada, France, Germany, Italy, Japan, the United 
Kingdom of Great Britain and Northern Ireland or the United States of America;  
 ICSID means the International Center for Settlement of Investment Disputes; 
  ICSID Convention  means the Convention on the Settleme nt of Investment Disputes between 
States and Nationals of other States, done at Washington, March 18, 1965;   investment  means every kind of asset that an investor owns or controls, directly or indirectly, 
and that has the characteristics of an investment, such as the commitment of capital or other resources, 
the expectation of gains or profits and the assumption of risk. Forms that an investment may take include, but are not limited to:  
(a) an enterprise; 
(b) shares, stocks, and other forms of equ ity participation in an enterprise; 
(c) bonds, debentures, loans, and other debt instruments of an enterprise; 
(d) rights under contracts, including turnkey,  construction, management, production, 
concession or revenue-sharing contracts; 
(e) claims to money established and maintain ed in connection with the conduct of 
commercial activities; 
(f) intellectual property rights; 
(g) rights conferred pursuant to domestic law or contract such as concessions, licenses, 
authorizations and permits, except for those that do not create any rights protected by domestic law; and 
(h) other tangible or intangible, movable or immovable property, and related property 
rights, such as leases, mortgages, liens and pledges; 
but investment  does not mean, 
 
(i) claims to money that arise solely from: 
(i) commercial contracts for the sale of goods or services by a national or 
enterprise in the territory of a Party to an enterprise in the territory of the 
other Party; or WT/REG169/1 
Page 48  
 
(ii) the extension of credit in connection w ith a commercial transaction, such as 
trade financing; and 
(j) an order entered in a judicial or administrative action. 
 investment of an investor of a Party  means an investment owned or controlled, directly or 
indirectly, by an investor of such a Party; 
 
 investor of a Party  means a Party or state enterprise ther eof, or a national or an enterprise of 
such a Party, that makes a juridical  act in the territory of the other Party, towards materializing an 
investment within it, that submits capital or, when  applicable, is making or has made an investment; 
 
 investor of a non-Party  means an investor other than an investor of a Party; 
  New York Convention  means the United Nations C onvention on the Recognition and 
Enforcement of Foreign Arbitral Awards, done in New York on June 10, 1958;  
 Secretary-General means the Secretary-General of ICSID; 
  transfers  means transfers and international payments; 
  Tribunal  means an arbitration tribunal established under Article 10.24 or 10.30; 
 
 TRIMS Agreement  means Agreement on Trade-Related Investment Measures, which is part 
of the WTO Agreement; and   UNCITRAL Arbitration Rules  means the arbitration rules of the United Nations 
Commission on International Trade Law, approved by the United Nations General Assembly on 
December 15, 1976. 
 
Section B - Investment
 
 
Article 10.2 
 
Scope And Coverage  
 1. This Chapter applies to measures adopted or maintained by a Party relating to: 
(a) investors of the other Party; 
(b) investments of investors of the other Party in the territory of the Party; and 
(c) with respect to Articles 10.7 and 10.18, all investments in the territory of the Party. 
2. This Chapter applies to the existing investments at the date of the entry into force of this 
Agreement, as well as to the investments made or acquired after this date. 
3. This Chapter does not apply to: 
(a) measures adopted or maintained by a Party relating to investors of the other Party, 
and investments of such investors, in financ ial institutions in the Party's territory; and 
(b) claims arising out of events which occurred, or claims which had been raised, prior to 
the entry into force of this Agreement.  WT/REG169/1 
 Page 49 
 
 
4. Nothing in this Chapter shall be construed to prevent a Party from providing a service or 
performing a function such as law enforcement, corr ectional services, income security or insurance, 
social security or insurance, social welfare, public  education, public training, health and child care. 
5. Notwithstanding paragraph 4, if services provide d in the exercise of governmental authority 
are provided in the territory of a Party such as la w enforcement, correctional services, income security 
or insurance, social security or insurance, social welfare, public e ducation, public training, health, and 
child care on a commercial basis or in competition with one or more service providers, those services are covered by the provisions of this Chapter. 
Article 10.3 
 
National Treatment
 
 1. Each Party shall accord to investors of the othe r Party treatment no less favourable than that it 
accords, in like circumstances, to its own investor s with respect to the establishment, acquisition, 
expansion, management, conduct,  operation, and sale or other disposition of investments. 
2. Each Party shall accord to investments of investors of the other Party treatment no less 
favourable than that it accords, in like circumstances,  to investments of its own investors with respect 
to the establishment, acquisition, expansion, ma nagement, conduct, operation, and sale or other 
disposition of investments. 
Article 10.4 
 
Most-Favoured-Nation Treatment
 
 1. Each Party shall accord to investments of investor s of the other Party made or materialized in 
accordance with the laws and regulations of the other Party, and investors of the other Party who have 
made or materialized such investments, treat ment no less favorable than it accords, in like 
circumstances, to investments made or materialized by investors of any non-Party or investors of such 
investments. 
2. If a Party accords more favorable treatment to investments of investors of a non- Party or 
investors of a non-Party by an agreement establishing, inter alia , a free trade area, a customs union, a 
common market, an economic union or any other fo rm of regional economic organization to which 
the Party is a member, it shall not be obliged to acco rd such treatment to investments of the investors 
of the other Party or the investors of the other Party. 
3. Notwithstanding paragraph 2, if a Party makes an y further liberalization, in conformity with 
Articles 10.9.1 and 10.9.2 by an agreement with a non-Party, it shall afford adequate opportunity to 
the other Party to negotiate treatment granted therei n on a mutually advantageous basis with a view to 
securing an overall balance of rights and obligations. 
Article 10.5 
 
Minimum Standard Of Treatment
 
 1. Each Party shall accord to investments of inv estors of the other Party treatment in accordance 
with the customary international law minimum sta ndard of treatment of aliens, including fair and 
equitable treatment and full protection and security. WT/REG169/1 
Page 50  
 
2. The concepts of “fair and equitable treatment”  and “full protection and security” in paragraph 
1 do not require treatment in addition to or beyond that which is required by the customary 
international law minimum standa rd of treatment of aliens. 
3. A determination that there has been a breach of another provision of this Agreement, or of a 
separate international agreement, does not establish that there has been a breach of this Article. 
Article 10.6 
 
Losses And Compensation
 
  Investors of a Party whose investments suffer losses owing to war or other armed conflict, a 
state of national emergency, revolt, insurrection, ri ot or other similar situations, and such losses as 
ones resulting from requisition or destruction of prop erty, which was not caused in combat action or 
was not required by the necessity of the situation, in the territory of the other Party, shall be accorded 
by the latter Party treatment, as regards restitution, indemnification, compensation or other forms of 
settlement, no less favorable than that which the la tter Party accords to its own investors or to 
investors of any non-Party, whichever is mo re favourable to the investors concerned. 
 
Article 10.7 
 
Performance Requirements
 
 
1. Neither Party may impose or enforce any of the following requirements, or enforce any 
commitment or undertaking, in connection wi th the establishment, acquisition, expansion, 
management, conduct or operation of an investment of an investor of a Party or of a non-Party in its 
territory: 
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or pe rcentage of domestic content; 
(c) to purchase, use or accord a preference to goods produced or services provided in its 
territory, or to purchase goods or services from persons in its territory; 
(d) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange in flows associated with such investment; 
(e) to restrict sales of goods or services in its territory that such investment produces or 
provides by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings; 
(f) to transfer technology, a production process  or other proprietary knowledge to a 
person in its territory, except when the requi rement is imposed or the commitment or 
undertaking is enforced by a court, administrative tribunal or competition authority to 
remedy an alleged violation of competition la w or to act in a manner not inconsistent 
with other provisions of this Agreement; or 
(g) to act as the exclusive supplier of the goods it produces or services it provides to a 
specific region or world market. 
2. A measure that requires an investment to u se a technology to meet generally applicable 
health, safety or environmental requirements sha ll not be construed to be inconsistent with 
subparagraph 1(f). For greater certainty, Artic les 10.3 and 10.4 apply to the measure.   WT/REG169/1 
 Page 51 
 
 
3. Neither Party may condition the receipt or contin ued receipt of an advantage, in connection 
with an investment in its territory of an investor of a Party or of a non-Party, in compliance with any 
of the following requirements: 
(a) to achieve a given level or pe rcentage of domestic content; 
(b) to purchase, use or accord a preference to  goods produced in its territory, or to 
purchase goods from producers in its territory; 
(c) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange infl ows associated with such investment; or 
(d) to restrict sales of goods or services in its territory that such investment produces or 
provides by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings. 
4. Nothing in paragraph 3 shall be construed to prevent a Party from conditioning the receipt or 
continued receipt of an advantage, in  connection with an investment in its territory of an investor of a 
Party or of a non-Party, in compliance with a requi rement to locate production, provide a service, train 
or employ workers, construct or expand particular facilities, or carry  out research and development, in 
its territory. In the event of any inconsistency be tween this paragraph and the TRIMS Agreement, the 
latter shall prevail to the extent of the inconsistency.  
5. Paragraphs 1 and 3 do not apply to any requir ement other than the requirements set out in 
those paragraphs. 
6. Provided that such measures are not applied in an arbitrary or unjustifiable manner, or do not 
constitute a disguised restriction on international tr ade or investment, nothing in subparagraphs 1(b) 
or (c) or 3(a) or (b) shall be construed to prev ent a Party from adopting or maintaining measures, 
including environmental measures: 
(a) necessary to secure compliance with laws and regulations that are not inconsistent 
with the provisions of this Agreement; 
(b) necessary to protect human, animal or plant life or health; or 
(c) necessary for the conservation of living or  non-living exhaustible natural resources. 
7. The provisions of: 
(a) subparagraphs 1(a), (b) and (c), and 3(a) and (b) shall not apply to qualification 
requirements for goods or services with respect to export promotion and foreign aid programs; 
(b) subparagraphs 1(b), (c), (f) and (g), and 3( a) and (b) shall not apply to procurement 
by a Party or a state enterprise; and 
(c) subparagraphs 3(a) and (b) shall not apply to requirements imposed by the importing 
Party relating to the content of goods n ecessary to qualify for preferential tariff or 
preferential quotas. 
8. This Article does not preclude the application of any commitment, obligation or requisite 
between private parties. WT/REG169/1 
Page 52  
 
Article 10.8 
 
Senior Management And Boards Of Directors
 
 1. Neither Party may require that an enterprise of a Pa rty that is an investment of an investor of 
the other Party appoint to senior management pos itions individuals of any particular nationality. 
2. A Party may require that a majority of the board of directors, or any committee thereof, of an 
enterprise of that Party that is an investment of an  investor of the other Party, be of a particular 
nationality, or resident in the territory of the Part y, provided that the requirement does not materially 
impair the ability of the investor to exercise control over its investment. 
Article 10.9 
 
Reservations And Exceptions
 
 1. Articles 10.3, 10.7 and 10.8 shall not apply to: 
(a) any existing nonconforming measure that is maintained by: 
(i) a Party at the national level, as set out in its Schedule to Annex I; or 
(ii) a local government; 
(b) the continuation or prompt renewal of an y nonconforming measure referred to in 
subparagraph (a); or 
(c) an amendment to any nonconforming measure referred to in subparagraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendmen t, with Articles 10.3, 10.7 and 10.8. 
2. Articles 10.3, 10.7 and 10.8 shall not apply to any measure that a Party adopts or maintains 
with respect to sectors, subsectors or activiti es, as set out in its Schedule to Annex II. 
3. Neither Party shall, under any measure adopted af ter the date of entry into force of this 
Agreement and covered by its Schedul e to Annex II, require an investor of the other Party, by reason 
of its nationality, to sell or otherwise dispose of  an investment existing at the time the measure 
becomes effective. 
4. Nothing in this Chapter shall be construed so as to derogate from rights and obligations under 
international agreements in respect of protection of intellectual property rights to which both Parties 
are party, including TRIPS Agreement and other treaties concluded under the auspices of the World 
Intellectual Property Organization. 
5. Articles 10.3 and 10.8 shall not apply to: 
(a) procurement by a Party or a state enterprise; or 
(b) subsidies or grants provided by a Party or a state enterprise, including government-
supported loans, guarantees and insurance. 
6. Articles 10.3, 10.7 and 10.8 shall not apply to any voluntary and special investment regime, 
as is established in Annex 10.9.6.  WT/REG169/1 
 Page 53 
 
 
Article 10.10 
 
Future Liberalization  
  Through future negotiations, to be scheduled  every two years by the Commission after the 
date of entry into force of this Agreement, the Par ties will engage in further liberalisation with a view 
to reaching the reduction or elimination of the rema ining restrictions schedul ed in conformity with 
paragraphs 1 and 2 of Article 10. 9 on a mutually advantageous basis and securing an overall balance 
of rights and obligations.  
Article 10.11 
 
Transfers
 
 1. Except as provided in Annex 10.11, each Party shall permit all transfers relating to an 
investment of an investor of the other Party in the territory of the Party to be made freely and without 
delay. Such transfers include: 
(a) the initial capital and additional amount to  maintain or increase an investment; 
(b) profits, dividends, interest, capital gains,  royalty payments, management fees, 
technical assistance and other fees, returns in kind and other amounts derived from the investment; 
(c) proceeds from the sale of all or any part of the investment or from the partial or 
complete liquidation of the investment; 
(d) payments made under a contract entered in to by the investor, or its investment, 
including payments made pursuant to a loan agreement; 
(e) payments made pursuant to Article 10.13; and 
(f) payments arising under Section C. 
2. Each Party shall permit transfers to be made in  a freely usable or convertible currency at the 
market rate of exchange prevailing on the date of transfer. 
3. Neither Party may require its investors to transfer , or penalize its investors that fail to transfer, 
the income, earnings, profits or other amounts derive d from, or attributable to, investments in the 
territory of the other Party. 
4. Notwithstanding paragraphs 1 and 2, a Party ma y prevent a transfer through the equitable, 
non-discriminatory and good faith appl ication of its laws relating to: 
(a) bankruptcy, insolvency or the protection of the rights of creditors; 
(b) issuing, trading or dealing in securities; 
(c) criminal or penal offenses; 
(d) reports of transfers of currency or other monetary instruments; or 
(e) ensuring the satisfaction of judgments in adjudicatory proceedings. WT/REG169/1 
Page 54  
 
5. Paragraph 3 shall not be construed to preven t a Party from imposing any measure through the 
equitable, non-discriminatory and good faith applica tion of its laws relating to the matters set out in 
subparagraphs (a) through (e) of paragraph 4. 
6. Notwithstanding paragraph 1, a Party may restrict transfers of returns in kind in 
circumstances where it could otherw ise restrict such transfers under this Agreement, including as set 
out in paragraph 4. 
Article 10.12 
 
Exceptions And Safeguard Measures
 
 
1. Where, in exceptional circumstances, payments and capital movements between the Parties 
cause or threaten to cause serious difficulties for th e operation of monetary policy or exchange rate 
policy in either 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.  
Article 10.13 
 
Expropriation And Compensation
 
 
1. Neither Party may, directly or indirectly, na tionalize or expropriate an investment of an 
investor of the other Party in its territory, except: 
(a) for a public purpose; 
(b) on a non-discriminatory basis; 
(c) in accordance with due process of  law and Article 10.5(1); and 
(d) on payment of compensation in accordance with paragraphs 2 through 6. 
2. Compensation shall be equivalent to the fair market value of the expropriated investment 
immediately before the expropriation took place ("date  of expropriation"), and shall not reflect any 
change in value occurring because the intended e xpropriation had become known earlier. Valuation 
criteria shall include going concern value, asset value including declared tax value of tangible 
property, and other criteria, as appropria te, to determine fair market value. 
3. Compensation shall be paid without delay and be fully realizable. 
4. If payment is made in a G7 currency, compensa tion shall include interest at a commercially 
reasonable rate for that currency from the date of  expropriation until the date of actual payment. 
5. If a Party elects to pay in a currency other than a G7 currency, the amount paid on the date of 
payment, if converted into a G7 currency at the mark et rate of exchange prevailing on that date, shall 
be no less than that if the amount of compensa tion owed on the date of expropriation had been 
converted into that G7 currency at the market rate  of exchange prevailing on that date, and interest 
had accrued at a commercially reasonable rate for that G7 currency from the date of expropriation 
until the date of payment.  WT/REG169/1 
 Page 55 
 
 
6. On payment, compensation shall be freely transferable as provided in Article 10.11. 
7. This Article does not apply to the issuance of  compulsory licenses granted in relation to 
intellectual property rights, or to the revocation, limitation or creation of intellectual property rights, 
to the extent that such issuance, revocation, lim itation or creation is consistent with the TRIPS 
Agreement. 
Article 10.14 
 
Subrogation  
 1. Where a Party or an agency authorized by that  Party has granted a contract of insurance or 
any form of financial guarantee against non-commercial risks with regard to an investment by one of 
its investors in the territory of the other Party and when payment has been made  under this contract or 
financial guarantee by the former Party or the agency  authorized by it, the latter Party shall recognize 
the rights of the former Party or the agency author ized by the Party by virtue of the principle of 
subrogation to the rights of the investor.  
2. Where a Party or the agency authorized by the Party has made a payment to its investor and 
has taken over rights and claims of the investor, th at investor shall not, unless authorized to act on 
behalf of the Party making the payment, pursue t hose rights and claims against the other Party. 
Article 10.15 
 
Special Formalities And Information Requirements
 
 
1. Nothing in Article 10.3 shall be construed to prevent a Party from adopting or maintaining a 
measure that prescribes special formalities in conn ection with the establishment of investments by 
investors of the other Party, such as the requirement  that investments be legally constituted under the 
laws or regulations of the Party, provided that  such formalities do not materially impair the 
protections afforded by a Party to investors of the other Party and investments of investors of the other 
Party pursuant to this Chapter. 
2. Notwithstanding Article 10.3 or 10.4, a Party may re quire an investor of the other Party, or its 
investment in its territory, to provide routine in formation concerning that investment solely for 
informational or statistical purposes. The Party shall protect such business information that is 
confidential from any disclosure that would prejudi ce the competitive position of the investor or the 
investment. Nothing in this paragraph shall be c onstrued to prevent a Party from otherwise obtaining 
or disclosing information in connection with the equitable and good faith application of its law. 
Article 10.16 
 
Relation To Other Chapters  
 
1. In the event of any inconsistency between this Chapter and another Chapter in this 
Agreement, the other Chapter shall prevail to the extent of the inconsistency.  
2. The requirement by a Party that a service provider of the other Party post a bond or other 
form of financial security as a c ondition of providing a service into its  territory does not of itself make 
this Chapter applicable to the provision of that cross-border service. This Chapter applies to that 
Party's treatment of the posted bond or financial security. WT/REG169/1 
Page 56  
 
Article 10.17 
 
Denial Of Benefits
 
 1. A Party may deny the benefits of this Chapter to an investor of the other Party that is an 
enterprise of such Party and to inv estments of such investor, if investors of a non-Party own or control 
the enterprise and the denying Party: 
(a) does not maintain diplomatic relations with the non-Party; or 
(b) adopts or maintains measures with respect to the non-Party that prohibit transactions 
with the enterprise or that would be violated  or circumvented if the benefits of this 
Chapter were accorded to the ente rprise or to its investments. 
2. Subject to prior notification and consultation in accordance with Articles 17.4 and 19.4, a 
Party may deny the benefits of this Chapter to an i nvestor of the other Party that is an enterprise of 
such Party and to investments of such investors if investors of a non-Party own or control the enterprise and the enterprise has no substantial bus iness activities in the territory of the Party under 
whose law it is constituted or organized. 
Article 10.18 
 
Environmental Measures
 
 1. Nothing in this Chapter shall be construed to prevent a Party from adopting, maintaining or 
enforcing any measure otherwise consistent with this  Chapter that it considers appropriate to ensure 
that an investment activity in its territory is undertaken in a manner sensitive to environmental 
concerns. 
2. The Parties recognize that it is inappropriate to encourage investment by relaxing domestic 
health, safety or environmental measures. Accord ingly, a Party should not waive or otherwise 
derogate from, or offer to waive or otherwise dero gate from, such measures as an encouragement for 
the establishment, acquisition, expansion or retention in its territory of an investment of an investor. If 
a Party considers that the other Party has offered su ch an encouragement, it may request consultations 
with the other Party and the Parties shall consult with a view to avoiding any such encouragement. 
Section C - Settlement Of Disputes Between A Party And An Investor Of The Other Party
 
 
Article 10.19 
 
Purpose  
  Without prejudice to the rights and obligations of the Parties under Chapter 19, this Section 
establishes a mechanism for the settlement of inve stment disputes that assures both equal treatment 
among investors of the Parties in accordance with th e principle of international reciprocity and due 
process before an impartial tribunal.  
Article 10.20 
 
Claim By An Investor Of A Party On Its Own Behalf
 
 1. Subject to Annex 10.20, an investor of a Part y may submit to arbitration under this Section a 
claim that the other Party has br eached an obligation under Section B or Article 14.8, and that the 
investor has incurred loss or damage by reason of, or arising out of, that breach.   WT/REG169/1 
 Page 57 
 
 
2. An investor may not make a claim if more th an three years have elapsed from the date on 
which the investor first acquired, or should have first acquired, knowledge of the alleged breach and 
knowledge that the investor has incurred loss or damage. 
Article 10.21 
 
Claim By An Investor Of A Party On Behalf Of An Enterprise  
 
1. Subject to Annex 10.20, an investor of a Party, on behalf of an enterprise of the other Party 
that is a juridical person that the investor owns or controls, directly or indirectly, may submit to 
arbitration under this Section a claim that the ot her Party has breached an obligation under Section B 
or Article 14.8, and that the enterprise has incurred lo ss or damage by reason of, or arising out of, that 
breach. 
2. An investor may not make a claim on behalf of an enterprise described in paragraph 1 if more 
than three years have elapsed from the date on which the enterprise first acquired, or should have first 
acquired, knowledge of the alle ged breach and knowledge that the enterprise has incurred loss or 
damage. 
3. Where an investor makes a claim under this Ar ticle and the investor or a non-controlling 
investor in the enterprise makes a claim under Article 10.20 arising out of the same events that gave 
rise to the claim under this Article, and two or more  of the claims are submitted to arbitration under 
Article 10.24, the claims should be heard togeth er by a Tribunal established under Article 10.30, 
unless the Tribunal finds that the interests of a disputing party would be prejudiced thereby. 
4. An investment may not make a claim under this Section. 
Article 10.22 
 
Settlement Of A Claim Through  Consultation And Negotiation  
 
 The disputing parties should first attempt to settle a claim through consultation or negotiation. 
 
Article 10.23 
 
Notice Of Intent To Submit A Claim To Arbitration  
 
 The disputing investor shall deliver to the di sputing Party written notice of its intention to 
submit a claim to arbitration at least 90 days before  the claim is submitted, which notice shall specify: 
 
(a) the name and address of the disputing investor and, where a claim is made under 
Article 10.21, the name and address of the enterprise; 
(b) the provisions of this Agreement alleged to have been breached and any other 
relevant provisions; 
(c) the issues and the factual basis for the claim; and 
(d) the relief sought and the approximate amount of damages claimed. WT/REG169/1 
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Article 10.24 
 
Submission Of A Claim To Arbitration
 
 1. Provided that six months have elapsed since th e events giving rise to a claim, a disputing 
investor may submit the claim to arbitration under: 
(a) the ICSID Convention, provided that both the disputing Party and the Party of the 
investor are parties to the Convention; 
(b) the Additional Facility Rules of ICSID, provide d that either the disputing Party or the 
Party of the investor, but not both, is a party to the ICSID Convention; or  
(c) the UNCITRAL Arbitration Rules. 
2. The applicable arbitration rules shall govern the arbitration except to the extent modified by 
this Section. 
Article 10.25 
 
Conditions Precedent To Submission Of A Claim To Arbitration
 
 1. A disputing investor may submit a claim unde r Article 10.20 to arbitration only if: 
(a) the investor and the enterprise, that is a juridical person that the investor owns or 
controls, directly or indirectly, have not submitted the same claim before any 
administrative tribunal or court of the disputing Party; 
(b) the investor consents to arbitration in acco rdance with the procedures set out in this 
Agreement; and 
(c) the investor and, where the claim is for loss or  damage to an interest in an enterprise 
of the other Party that is a juridical person that the investor owns or controls, directly or indirectly, the enterprise, waive their right to initiate before any administrative 
tribunal or court under the law of a Party, or other dispute settlement procedures, any 
proceedings with respect to the measure of th e disputing Party that is alleged to be a 
breach referred to in Article 10.20, except for proceedings for injunctive, declaratory 
or other extraordinary relief, not involving the payment of damages, before an administrative tribunal or court under the law of the disputing Party. 
2. A disputing investor may submit a claim unde r Article 10.21 to arbitration only if:  
(a) both the investor and the enterprise that is a juridical person that the investor owns or 
controls, directly or indirectly, have not submitted the same claim before any 
administrative tribunal or court of the disputing Party; 
(b) both the investor and the enterprise consen t to arbitration in accordance with the 
procedures set out in this Agreement; and 
(c) both the investor and the enterprise wa ive their rights to initiate before any 
administrative tribunal or court under the la w of a Party, or other dispute settlement 
procedures, any proceedings with respect to the measure of the disputing Party that is 
alleged to be a breach referred to in Article 10.21, except for proceedings for 
injunctive, declaratory or other extraordinary relief, not involving the payment of  WT/REG169/1 
 Page 59 
 
 
damages, before an administrative tribuna l or court under the law of the disputing 
Party. 
3. Once a disputing investor concerned submit s the dispute for resolution before any 
administrative tribunal or court under the law of a Party, the investor may not thereafter allege the measure to be such a breach referred to in Article 10. 20 or 10.21 in an arbitration under this Section. 
4. A consent and waiver required by this Article shall be in writing, shall be delivered to the 
disputing Party and shall be included in th e submission of a claim to arbitration.  
5. Only where a disputing Party has deprived a dis puting investor of control of an enterprise: 
(a) a waiver from the enterprise under subparagra ph 1(c) or 2(c) shall not be required; 
and 
(b) Article 10.24.1(b) shall not be applicable. 
Article 10.26 
 
Consent To Arbitration
 
 
1. Each Party consents to the submission of a claim to arbitration in accordance with the 
procedures set out in this Agreement. 
2. The consent given under paragraph 1 and the submis sion by a disputing investor of a claim to 
arbitration shall satisfy the requirements of: 
(a) Chapter II of the ICSID Convention (Jurisdi ction of the Centre) and the Additional 
Facility Rules for written consent of the parties; and 
(b) Article II of the New York Convention for an agreement in writing.  
Article 10.27 
 
Number Of Arbitrators And Method Of Appointment  
 
 Except in respect of a Tribunal establishe d under Article 10.30, and unless the disputing 
parties otherwise agree, the Tribunal shall comprise th ree arbitrators, one arbitrator appointed by each 
of the disputing parties and the third, who shall be  the presiding arbitrator, appointed by agreement 
between the disputing parties.  
Article 10.28 
 
Constitution Of A Tribunal When A Party Fails To A ppoint An Arbitrator Or The Disputing Parties 
Are Unable To Agree On A Presiding Arbitrator  
 1. The Secretary-General shall serve as appointin g authority for an arbitration under this 
Section. 
2. If a Tribunal, other than a Tribunal established under Article 10.30, has not been constituted 
within 90 days from the date that a claim is submi tted to arbitration, the Secretary-General, on the 
request of either disputing party, shall appoint, in hi s or her discretion, the arbitrator or arbitrators not 
yet appointed, except that the presiding arbitrator sh all be appointed in accordance with paragraph 3. WT/REG169/1 
Page 60  
 
3. The Secretary-General shall appoint the presiding arbitrator from the roster of presiding 
arbitrators referred to in paragraph 4, provided that  the presiding arbitrator shall not be a national of 
the disputing Party or a national of the Party of the disputing investor. In the event that no such 
presiding arbitrator is available to serve, the Secr etary-General shall appoint, from the ICSID Panel of 
Arbitrators, a presiding arbitrator who is not a national of either of the Parties.  
4. On the date of entry into force of this Agre ement, the Parties shall establish, and thereafter 
maintain, a roster of 30 presiding arbitrators, none of whom may be a national of a Party, meeting the 
qualifications of the Convention and rules referred to in Article 10.24 and experienced in international 
law and investment matters. The roster member s shall be appointed by mutual agreement. 
Article 10.29 
 
Agreement To Appointment Of Arbitrators
 
  For purposes of Article 39 of the ICSID Conven tion and Article 7 of Schedule C to the ICSID 
Additional Facility Rules, and without prejudice to an objection to an arbitr ator based on Article 
10.28.3 or on a ground other than nationality: 
 
(a) the disputing Party agrees to the appoin tment of each individual member of a 
Tribunal established under the ICSID Conven tion or the ICSID Additional Facility 
Rules; 
(b) a disputing investor referred to in Article 10.20 may submit a claim to arbitration, or 
continue a claim, under the ICSID Conve ntion or the ICSID Additional Facility 
Rules, only on condition that the dispu ting investor agrees in writing to the 
appointment of each individual member of the Tribunal; and 
(c) a disputing investor referred to in Article 10.21.1 may submit a claim to arbitration, 
or continue a claim, under the ICSID C onvention or the ICSID Additional Facility 
Rules, only on condition that the disputing investor and the enterprise agree in writing 
to the appointment of each individual member of the Tribunal.  
Article 10.30 
 
Consolidation
 
 
1. A Tribunal established under this Article shall be established under the UNCITRAL 
Arbitration Rules and shall conduct its proceedi ngs in accordance with t hose Rules, except as 
modified by this Section. 
2. Where a Tribunal established under this Article is satisfied that claims have been submitted to 
arbitration under Article 10.24 that have a question of law or fact in common, the Tribunal may, in the 
interests of fair and efficient resolution of the claims , and after hearing the disputing parties, by order: 
(a) assume jurisdiction over, and hear and determine together, all or part of the claims; or 
(b) assume jurisdiction over, and hear and determine one or more of the claims, the 
determination of which it believes would assist in the resolution of the others.  
3. A disputing party that seeks an order under para graph 2 shall request the Secretary-General to 
establish a Tribunal and shall specify in the request:  WT/REG169/1 
 Page 61 
 
 
(a) the name of the disputing Party or disputing investors against which the order is 
sought; 
(b) the nature of the order sought; and 
(c) the grounds on which the order is sought. 
4. The disputing party shall deliver to the dispu ting Party or disputing investors against which 
the order is sought a copy of the request. 
5. Within 60 days of receipt of the request, the Secretary-General shall establish a Tribunal 
comprising three arbitrators. The Secretary-Genera l shall appoint the presiding arbitrator from the 
roster referred to in paragraph 4 of Article 10.28.  In the event that no such presiding arbitrator is 
available to serve, the Secretary-General shall appoint, from the ICSID Panel of Arbitrators, a 
presiding arbitrator who is not a national of either Party. The Secretary-General shall appoint the two 
other members from the roster referred to in pa ragraph 4 of Article 10.28 and to the extent not 
available from that roster, from the ICSID Panel of Arbitrators, and to the extent not available from 
that Panel, in the discretion of the Secretary-Genera l. One member shall be a national of the disputing 
Party and one member shall be a national of the Party of the disputing investors. 
6. Where a Tribunal has been established under th is Article, a disputing investor that has 
submitted a claim to arbitration unde r Article 10.20 or 10.21 and that has not been named in a request 
made under paragraph 3 may make a written request to the Tribunal that it be included in an order 
made under paragraph 2, and sh all specify in the request: 
(a) the name and address of the disputing investor; 
(b) the nature of the order sought; and 
(c) the grounds on which the order is sought. 
7. A disputing investor referred to in paragraph 6 shall deliver a copy of its request to the 
disputing parties named in a request made under paragraph 3. 
8. A Tribunal established under Article 10.24 shall not have jurisdiction to decide a claim, or a 
part of a claim, over which a Tribunal establis hed under this Article has assumed jurisdiction. 
9. On application of a disputing party, a Tri bunal established under th is Article, pending its 
decision under paragraph 2, may order that the pr oceedings of a Tribunal established under Article 
10.24 be stayed, unless the latter Tribunal has already adjourned its proceedings. 
Article 10.31 
 
Notice  
 
1. A disputing Party shall deliver to the Secretariat,  within 15 days of receipt by the disputing 
Party, a copy of: 
(a) a request for arbitration made under para graph (1) of Article 36 of the ICSID 
Convention; 
(b) a notice of arbitration made under Article 2 of Schedule C of the ICSID Additional 
Facility Rules; or WT/REG169/1 
Page 62  
 
(c) a notice of arbitration given under the UNCITRAL Arbitration Rules.  
2. A disputing Party shall deliver to the Secretar iat a copy of a request made under paragraph 3 
of Article 10.30: 
(a) within 15 days of receipt of the request, in the case of a request made by a disputing 
investor; or 
(b) within 15 days of making the request, in th e case of a request made by the disputing 
Party. 
3. A disputing Party shall deliver to the Secretar iat a copy of a request made under paragraph 6 
of Article 10.30 within 15 days of receipt of the request. 
4. The Secretariat shall maintain a public register of  the documents referred to  in paragraphs 1, 2 
and 3. 
5. A disputing Party shall deliver to the other Party: 
(a) written notice of a claim that has been submitted to arbitration no later than 30 days 
after the date that the claim is submitted; and 
(b) copies of all pleadings filed in the arbitration. 
Article 10.32 
 
Participation By A Party
 
  Upon written notice to the disputing parties, a Party may make submissions to a Tribunal on a 
question of interpretation of this Agreement. 
 
Article 10.33 
 
Documents
 
 
1. A Party shall be entitled to receive from the dis puting Party, at the cost of the requesting 
Party, a copy of: 
(a) the evidence that has been tendered to the Tribunal; and 
(b) the written argument of the disputing parties. 
2. A Party receiving information pursuant to paragraph 1 shall treat the information as if it were 
a disputing Party. 
Article 10.34 
 
Place Of Arbitration  
  Unless the disputing parties agree otherwise, a Tribunal shall hold an arbitration in the 
territory of a Party that is party to the Ne w York Convention, select ed in accordance with: 
 
(a) the ICSID Additional Facility Rules if the arbitration is under those Rules or the 
ICSID Convention; or  WT/REG169/1 
 Page 63 
 
 
(b) the UNCITRAL Arbitration Rules if the arbitration is under those Rules. 
Article 10.35 
 
Governing Law  
 
1. A Tribunal established under this Section shall decide the issues in di spute in accordance with 
this Agreement and applicable rules of international law. 
2. An interpretation by the Commission of a provisi on of this Agreement shall be binding on a 
Tribunal established under this Section. 
Article 10.36 
 
Interpretation Of Annexes  
 1. Where a disputing Party asserts as a defense that the measure alleged to be a breach is within 
the scope of a reservation or exception set out in Annex I or Annex II, upon request of the disputing 
Party, the Tribunal shall request the interpretati on of the Commission on th e issue. The Commission, 
within 60 days of delivery of the request, shall s ubmit in writing its interpretation to the Tribunal. 
2. Further to paragraph 2 of Article 10. 35, a Commission interpretation submitted under 
paragraph 1 shall be binding on the Tribunal. If the Commission fails to submit an interpretation 
within 60 days, the Tribunal shall decide the issue. 
Article 10.37 
 
Expert Reports
 
  Without prejudice to the appointment of other kinds of experts where authorized by the applicable arbitration rules, a Tribunal, at the request of a disputing party or, unless the disputing 
parties disapprove, on its own initiative, may appoint one  or more experts to report to it in writing on 
any factual issue concerning environmental, health, safety or other scientific matters raised by a disputing party in a proceeding, subject to such  terms and conditions as the disputing parties may 
agree.  
Article 10.38 
 
Interim Measures Of Protection
 
  A Tribunal may order an interim measure of pr otection to preserve the rights of a disputing 
party, or to ensure that the Tribunal's jurisdicti on is made fully effective, including an order to 
preserve evidence in the possession or control of a disputing party or to protect the Tribunal's 
jurisdiction. A Tribunal may not order attachment or enjoin the application of the measure alleged to 
constitute a breach referred to in Article 10.20 or  10.21. For purposes of this paragraph, an order 
includes a recommendation.  
Article 10.39 
 
Final Award
 
 1. Where a Tribunal makes a final award against a Pa rty, the Tribunal may award, separately or 
in combination, only: WT/REG169/1 
Page 64  
 
(a) monetary damages and any applicable interest; and 
(b) restitution of property, in which case the award shall provide that the disputing Party 
may pay monetary damages and any appli cable interest in lieu of restitution. 
2. A Tribunal may also award costs in accordance with the applicable arbitration rules. 
3. Subject to paragraphs 1 and 2, where a claim is made under Article 10.21.1: 
(a) an award of restitution of property shall provide that restitution be made to the 
enterprise; 
(b) an award of monetary damages and any applicable interest shall provide that the sum 
be paid to the enterprise; and 
(c) the award shall provide that it is made without prejudice to any right that any person 
may have in the relief under applicable domestic law. 
4. A Tribunal may not order a Party to pay punitive damages. 
Article 10.40 
 
Finality And Enforcement Of An Award
 
 
1. An award made by a Tribunal shall have no binding force except between the disputing 
parties and in respect of the particular case. 
2. Subject to paragraph 3 and the applicable review  procedure for an interim award, a disputing 
party shall abide by and comply with an award without delay. 
3. A disputing party may not seek enforcement of a final award until: 
(a) in the case of a final award made under the ICSID Convention: 
(i) 120 days have elapsed from the date th e award was rendered and no disputing 
party has requested revision or annulment of the award; or 
(ii) revision or annulment proceedings have been completed; and 
(b) in the case of a final award under the ICSID Additional Facility Rules or the 
UNCITRAL Arbitration Rules: 
(i) three months have elapsed from the date the award was rendered and no 
disputing party has commenced a proceedi ng to revise, set aside or annul the 
award; or 
(ii) a court has dismissed or allowed an app lication to revise, set aside or annul 
the award and there is no further appeal. 
4. Each Party shall provide for the enfor cement of an award in its territory. 
5. If a disputing Party fails to abide by or co mply with a final award, the Commission, on 
delivery of a request by a Party whose investor was a party to the arbitration, shall establish a panel 
under Article 19.6. The requesting Party may seek in such proceedings:  WT/REG169/1 
 Page 65 
 
 
(a) a determination that the failure to abide by or comply with the final award is 
inconsistent with the obliga tions of this Agreement; and 
(b) a recommendation that the Party abide by  or comply with the final award. 
6. A disputing investor may seek enforcement of an arbitration award under the ICSID 
Convention or the New York Convention regardless of whether proceedings have been taken under 
paragraph 5. 
7. A claim that is submitted to arbitration under this Section shall be considered to arise out of a 
commercial relationship or transaction for purposes of Article I of the New York Convention. 
Article 10.41 
 
General Provision  
 
Time when a Claim is Submitted to Arbitration 
 
1. A claim is submitted to arbitration under this Section when: 
(a) the request for arbitration under paragraph 1 of Article 36 of the ICSID Convention 
has been received by the Secretary-General; 
(b) the notice of arbitration under Article 2 of Schedule C of the ICSID Additional 
Facility Rules has been received  by the Secretary-General; or 
(c) the notice of arbitration given under the UNC ITRAL Arbitration Rules is received by 
the disputing Party. 
Service of Documents 
 
2. Delivery of notice and other documents on a Part y shall be made to the place named for that 
Party in Annex 10.41.2. 
Receipts under Insurance or Guarantee Contracts 
 
3. In an arbitration under this Section, a Party shall not assert, as a defense, counterclaim, right 
of setoff or otherwise, that the disputing investor has received or will receive, pursuant to an insurance 
or guarantee contract, indemnification or other comp ensation for all or part of its alleged damages. 
Publication of an Award 
 4. Annex 10.41.4 applies to the Parties specified in that Annex with respect to publication of an 
award. 
Article 10.42 
 
Exclusions
 
 
 Without prejudice to the applicability or non-applicability of the dispute settlement provisions of this Section or of Chapter 19 to other actions taken by a Party pursuant to Article 20.2, a decision 
by a Party to prohibit or restrict the acquisition of an  investment in its territory by an investor of the 
other Party, or investment of such an investor, pur suant to that Article shall not be subject to such 
provisions. WT/REG169/1 
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Section D - Investment And Cross-Border Trade In Services Committee
 
 
Article 10.43 
 
Investment And Cross-Border  Trade In Services Committee  
 
1. The Parties hereby establish an Investment a nd Cross-Border Trade in Services Committee, 
comprising representatives of each Part y, in accordance with Annex 10.43. 
2. The Committee shall meet at least once a year, or  in any time at request of a Party or the 
Commission. 
3. The Committee shall perform, inter alia , the following functions: 
(a) to overlook the execution and administration of this Chapter and Chapter 11; 
(b) to discuss the subjects of bilateral interest regarding investment and cross-border 
services; and 
(c) to examine subjects related to investment  and cross-border services, which are being 
discussed at other international fora. 
 
ANNEX 10.9.6 
 1. Decree Law 600 (1974), the Foreign Investment Stat ute, is a voluntary and special investment 
regime for Chile. 
2. As an alternative to the common regime for th e entry of capital into Chile, potential investors 
may apply to the Foreign Investment Committee to be subject to the regime set out in Decree Law 
600. 
3. The obligations and commitments contained in th is Chapter, do not apply to Decree Law 600, 
Foreign Investment Statute, to Law 18.657 Foreign Capital Investment Fund Law, to the continuation 
or prompt renewal of such laws, to amendments to  those laws or to any special and/or voluntary 
investment regime that may be adopted in the future by Chile. 
4. For greater certainty, it is understood that the Foreign Investment Committee of Chile has the 
right to reject applications to invest thr ough Decree Law 600 and Law 18.657. Additionally, the 
Foreign Investment Committee has the right to regulate the terms and conditions of foreign 
investment under Decree Law 600 and Law 18.657. 
 
ANNEX 10.11 
  With respect to its obligations under Article 10.11, Chile reserves:   
1. The right, without prejudice to paragra ph 3 of this Annex, to maintain existing 
requirements that transfers from Chile of pr oceeds from the sale of all or any part of 
an investment of an investor of Korea or  from the partial or complete liquidation of 
the investment may not take place until a period not to exceed:  
  WT/REG169/1 
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(a) in the case of an investment ma de pursuant to Decree Law 600 Foreign 
Investment Statute (Decreto Ley 600, Es tatuto de la Inversion Extranjera), 
one year has elapsed from the date of transfer to Chile; or 
 (b) in the case of an investment made pursuant to Law 18657 Foreign Capital 
Investment Fund Law (Ley 18.657, Ley Sobre Fondo de Inversiones de 
Capitales Extranjeros), five years have elapsed from the date of transfer to 
Chile; 
 
2. The right to adopt measures, consistent with this Annex, establishing future special 
voluntary investment programs in additio n to the general regime for foreign 
investment in Chile, except that any such measures may restrict transfers from Chile 
of proceeds from the sale of all or any part of an investment of an investor of Korea or from the partial or complete liquidation of the investment for a period not to exceed five years from the date of transfer to Chile; and 
 
3. The right of the Central Bank of Chile to  maintain or adopt measures in conformity 
with the Constitutional Organic Law of the Central Bank of Chile “Ley Orgánica Constitucional del Banco Central de Chile, Ley 18.840” (hereinafter, Law 18.840) or 
other legislation, in order to ensure currency stability and the normal operation of domestic and foreign payments. For this purpose, the Central Bank of Chile is 
empowered to regulate the supply of money an d credit in circulation and international 
credit and foreign exchange operations. The Central Bank of Chile is empowered as 
well to issue regulations governing monetary , credit, financial, and foreign exchange 
matters. Such measures include, inter alia , the establishment of restrictions or 
limitations on current payments and transfer s (capital movements) to or from Chile, as 
well as transactions related to them, such as requiring that deposits, investments or 
credits from or to a foreign country, be s ubject to a reserve requirement (“encaje”). 
 
 Notwithstanding the above, the reserve requireme nt that the Central Bank of Chile can apply 
pursuant to Article 49 No. 2 of Law 18.840, sha ll not exceed 30 per cent of the amount transferred 
and shall not be imposed for a period which exceeds two years.  
 
 
ANNEX 10.20 
 1. An investor of a Party, on its own behalf or on behalf of an enterprise, may only make a claim 
under Section C of this Chapter, in relation to i nvestments made and materialized in accordance with 
the laws and regulations of the other Party.  
2. Both Parties shall negotiate the coverage of  Section C of this Chapter, as well as the 
modification of any other Articles in Section C they deem appropriate, taking into account the 
outcome of bilateral, regional or multilateral nego tiations that address relevant issues, no later than 
one year after the entry into  force of this Agreement. WT/REG169/1 
Page 68  
 
ANNEX 10.41.2 
 
Service Of Documents
 
 
Chile 
 
 The place for the delivery of notice and other documents under Section C for Chile is:   Direccion de Asuntos Jurídicos del Ministerio de Relaciones Exteriores de la República de Chile  
Morandé 441 
Santiago, Chile  
Korea 
 
 The place for the delivery of notice and other documents under Section C for Korea is:   
Office of International Legal Affairs, Mini stry of Justice of the Republic of Korea 
Government Complex, Kwacheon Korea   
ANNEX 10.41.4 
 
Publication Of An Award
 
 
Chile 
  Where Chile is the disputing Party, either Chile  or a disputing investor that is a party to 
arbitration may make an award public.   
Korea 
 
 Where Korea is the disputing Party, either Kor ea or a disputing investor that is a party to 
arbitration may make an award public. 
  
ANNEX 10.43 
 
Composition Of The Investment And Cross-Border Trade In Services Committee
 
  For purposes of Article 10.43, the Committee shall comprise:  
(a) in the case of Chile, the General Directorate of International Economic Affairs of the 
Ministry of Foreign Affairs, or its successor; and 
(b) in the case of Korea, the Director General of International Economic Co-operation 
Bureau of the Ministry of Finance and Economy, or its successor. 
  WT/REG169/1 
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CHAPTER 11 : CROSS-BORDER TRADE IN SERVICES 
 
Article 11.1 
 
Definitions  
 
 For purposes of this Chapter:   cross-border provision of a service or cross-border trade in services  means the provision 
of a service: 
 
(a) from the territory of a Party into the territory of the other Party, 
(b) in the territory of a Party by a person of th at Party to a person of the other Party, or 
(c) by a national of a Party in the territory of the other Party,  
but does not include the provision of a service in the te rritory of a Party by an investment, as defined 
in Article 10.1, in that territory; 
  enterprise  means an "enterprise" as defined in Artic le 2.1, and a branch of an enterprise; 
  enterprise of a Party means an enterprise constituted or organized under the law of a Party 
and a branch, located in the territory of a Pa rty and carrying out business activities there; 
 
 financial services  means any service of a financial nature including those defined in 
paragraph 5(a) on Annex of Financial Services of GATS; 
  professional services means services, the provision of which requires specialized 
postsecondary education, or equivale nt training or experience, and for which the right to practice is 
granted or restricted by a Party, but does not incl ude services provided by trades-persons or vessel and 
aircraft crew members;   quantitative restriction  means a non-discriminatory measure that imposes limitations on: 
 
(a) the number of service providers, whether in the form of a quota, a monopoly or an 
economic needs test, or by any other quantitative means; or 
(b) the operations of any service provider, whethe r in the form of a quota or an economic 
needs test, or by any other quantitative means; 
 service provider of a Party means a person of a Party that seeks to provide or provides a 
service; and  
  specialty air services  means aerial mapping, aerial surveying, aerial photography, forest fire 
management, fire fighting, aerial a dvertising, flight training, aerial inspection and surveillance, and 
aerial spraying services.  
Article 11.2 
 
Scope And Coverage
 
 1. This Chapter applies to measures adopted or ma intained by a Party relating to cross-border 
trade in services by service providers of the other Party, including measures with respect to: WT/REG169/1 
Page 70  
 
(a) the production, distribution, marketing, sale and delivery of a service; 
(b) the purchase or use of, or payment for, a service; 
(c) the access to and use of distribution and tran sportation systems in connection with the 
provision of a service; 
(d) the presence in its territory of a service provider of the other Party; and 
(e) the provision of a bond or other form of financial security as a condition for the 
provision of a service. 
2. For purposes of this Chapter, measures adopted  or maintained by a Party mean measures 
adopted or maintained by government or non-govern mental bodies in the exercise of any regulatory, 
administrative or other governmental authority delegated to it by that government.  
3. This Chapter does not apply to: 
(a) cross-border trade in financial services; 
(b) air services, including domestic and international air transportation services, whether 
scheduled or non-scheduled, and related services in support of air services, other than: 
(i) aircraft repair and maintenance services during which an aircraft is 
withdrawn from service; 
(ii) specialty air services; 
(iii) glider towing, parachute jumping, aerial construction, heli-logging, aerial 
sightseeing; and  
(iv) computerized reservation system; 
(c) government procurement by a Party or a state enterprise; 
(d) subsidies or grants provided by a Party or a state enterprise, including government-
supported loans, guarantees and insurance; and 
(e) services provided in the exercise of governme ntal authority such as law enforcement, 
correctional services, income security or in surance, social security or insurance, 
social welfare, public education, pub lic training, health, and child care. 
4. Notwithstanding subparagraph 3(e), if services provided in the exercise of governmental 
authority are provided in the territory of a Party such as law enforcement, correctional services, 
income security or insura nce, social security or insurance, social welfare, public education, public 
training, health, and child care on a commercial b asis or in competition with one or more service 
providers, such services shall be covered by the provisions of this Chapter.  
5. Nothing in this Chapter shall be construed to impose any obligation on a Party with respect to 
a national of the other Party seeking access to its employment market, or employed on a permanent basis in its territory, or to confer any right on that  national with respect to such access or employment.  WT/REG169/1 
 Page 71 
 
 
Article 11.3 
 
National Treatment  
  Each Party shall accord to services and service providers of the other Party treatment no less 
favorable than that it accords, in like circumst ances, to its own services and service providers. 
 
Article 11.4 
 
Local Presence
 
 
 Neither Party may require a service provider of  the other Party to establish or maintain a 
representative office or any form of enterprise, or to  be resident, in its territory as a condition for the 
cross-border provision of a service.  
Article 11.5 
 
Reservations
 
 1. Articles 11.3 and 11.4 do not apply to: 
(a) any existing non-conforming measure that is maintained by: 
(i) a Party at the national level, as set out in its Schedule to Annex I; or 
(ii) a local government; 
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
subparagraph (a); or 
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Articles 11.3 and 11.4. 
2. Articles 11.3 and 11.4 do not apply to any measure that a Party adopts or maintains with 
respect to sectors, subsectors or activities, as set out in its Schedule to Annex II.  
Article 11.6 
 
Quantitative Restrictions
 
 1. Each Party shall set out in its Schedule to  Annex III any quantitative restriction that it 
maintains at the national level. 
2. Each Party shall notify the other Party of any qua ntitative restriction that it adopts, other than 
at the local government level, after the date of entr y into force of this Agreement and shall set out the 
restriction in its Schedule to Annex III. 
3. The Parties shall periodically, but in any event at  least every two years, endeavor to negotiate 
the liberalization or removal of the quantitative restri ctions set out in Annex III pursuant to paragraphs 
1 and 2. WT/REG169/1 
Page 72  
 
Article 11.7 
 
Future Liberalization
 
 
1. Through future negotiations, to be scheduled  every two years by the Commission after the 
date of entry into force of this Agreement, the Par ties will further deepen liberalization with a view to 
reaching the reduction or elimination of the remain ing restrictions scheduled in conformity with 
Article 11.5, on a mutually advantageous basi s and ensuring an overall balance of rights and 
obligations. 
2. If a Party makes any further liberalization, in conformity with Article 11.5 by an agreement 
with a non-Party, it shall afford adequate opportunity to the other Party to negotiate treatment granted 
therein on a mutually advantageous basis and with a view to securing an overall balance of rights and 
obligations. 
Article 11.8 
 
Liberalization Of Non-Discriminatory Measures  
  Each Party shall set out in its Schedule to A nnex IV its commitments to liberalize quantitative 
restrictions, licensing requirements, performance re quirements or other non-discriminatory measures. 
 
Article 11.9 
 
Procedures
 
  The Commission shall establish procedures for:  
(a) a Party to notify and include in its relevant Schedule: 
(i) quantitative restrictions in acco rdance with Article 11.6.2; 
(ii) commitments pursuant to Article 11.8; and 
(iii) amendments of measures referred to in Article 11.5.1(c); and 
(b) consultations on reservations, qua ntitative restrictions or commitments with a view to 
further liberalization. 
Article 11.10 
 
Licensing And Certification
 
 1. With a view to ensuring that  any measure adopted or maintained by a Party related to 
requirements and procedures to the licensing or certif ication of nationals of the other Party does not 
constitute an unnecessary barrier to cross-border trad e in services, each Party shall endeavour to 
ensure that any such measure: 
(a) is based on objective and transparent criter ia, such as competence and the ability to 
provide a service; 
(b) is not more burdensome than necessary to ensure the quality of a service; and 
(c) does not constitute a disguised restriction on the cross-border provision of a service.  WT/REG169/1 
 Page 73 
 
 
2. Where a Party recognizes, unilaterally or by an agreement or arrangement, education, 
experience, licenses or certifications obtained in the te rritory of a non-Party, the Party shall afford the 
other Party an adequate opportunity to demons trate that education, experience, licenses or 
certifications obtained in the other Party's territory  should also be recognized or to conclude an 
agreement or arrangement of comparable effect. 
3. Annex 11.10 applies to measures adopted or maintained by a Party relating to the licensing or 
certification of professional service providers. 
Article 11.11 
 
Denial Of Benefits  
 
 Subject to prior notificati on and consultation in accordance with Articles 17.4 and 19.4, a 
Party may deny the benefits of this Chapter to a service provider of the other Party where the Party establishes that the service is being provided by an  enterprise that is owned or controlled by persons 
of a non-Party and that has no substantive business activities in the territory of the other Party. 
 
 
ANNEX 11.10 
 
Professional Services
 
 Objectives 
 
1. The objective of this Annex is the establishment of  rules to be followed by the Parties in the 
reduction and gradual elimination,  within their territories of the barriers in the rendering of 
professional services. 
Processing of Applications for Licenses and Certifications  
 
2. Each Party shall ensure that its competent authorities, within a reasonable time after the 
submission by a national of the other Party of an  application for a license or certification:  
(a) where the application is complete, make a determination on the application and 
inform the applicant of that determination; or 
(b) where the application is not complete, inform  the applicant, without undue delay, of 
the status of the application and the additi onal information that is required under the 
Party's law. 
Development of Professional Standards 
 3. The Parties shall encourage the relevant bodi es in their respective territories to develop 
mutually acceptable standards and criteria for licensing and certification of professional service providers and to provide recommendations on mutual recognition to the Commission.  
4. The standards and criteria referred to in paragr aph 3 may be developed with regard to the 
following matters: 
(a) education - accreditation of schools or academic programs; 
(b) examinations - qualifying examinations fo r licensing, including alternative methods 
of assessment such as oral examinations and interviews; WT/REG169/1 
Page 74  
 
(c) experience - length and nature of experience required for licensing; 
(d) conduct and ethics - standards of professiona l conduct and the nature of disciplinary 
action for non-conformity with those standards; 
(e) professional development and re-certifica tion - continuing education and ongoing 
requirements to maintain professional certification; 
(f) scope of practice - extent of, or limitations on, permissible activities; 
(g) local knowledge - requirements for knowle dge of such matters as local laws, 
regulations, language, geog raphy or climate; and 
(h) consumer protection - alternatives to r esidency requirements, including bonding, 
professional liability insurance and client  restitution funds, to provide for the 
protection of consumers. 
5. Upon receipt of a recommendation referred to in  paragraph 3, the Commission shall review 
the recommendation within a reasonable time to de termine whether it is consistent with this 
Agreement. Based on the Commission's review, each Party shall encourage its respective competent 
authorities, where appropriate, to implement the recommendation within a mutually agreed time. 
Temporary Licensing 
 
6. Where the Parties agree, each Party shall enc ourage the relevant bodies in its territory to 
develop procedures for the temporary licensing of professional service providers of the other Party. 
Review 
 7. The Commission shall periodically, at leas t once every three years, review the 
implementation of this Section. 
 
CHAPTER 12 : TELECOMMUNICATIONS 
 
Article 12.1 
 
Definitions
 
  For purposes of this Chapter:  
 authorized equipment  means terminal or other equipm ent that has been approved for 
attachment to the public telecommunications tran sport network in accordance with the conformity 
assessment procedures of a Party;   conformity assessment procedures  means “conformity assessment procedures” as defined in 
Article 9.1 and includes the procedures established in Annex 12.1;  
  enhanced or value-added services  means telecommunications services employing computer 
processing applications that:  
(a) act on the format, content, code, protocol or similar aspects of a customer's 
transmitted information;  WT/REG169/1 
 Page 75 
 
 
(b) provide a customer with additional, diffe rent or restructured information; or 
(c) involve customer interaction with stored information; 
 intracorporate communications  means telecommunications through which an enterprise 
communicates:  
(a) internally or with or among its subsidiaries,  branches or affiliates, as defined by each 
Party, or 
(b) on a non-commercial basis with other persons  that are fundamental to the economic 
activity of the enterprise and that have a c ontinuing contractual relationship with it,  
but does not include telecommunications services pr ovided to persons other than those described 
herein; 
  monopoly means an entity, including a consortium or government agency, that in any 
relevant market in the territory of a Party is main tained or designated as the sole provider of a public 
telecommunication transport network or service; 
 
 network termination point  means the final demarcation of the public telecommunications 
transport network at the customer's premises;   non-discriminatory  means on terms and conditions no less favorable than those accorded to 
any other customer, user or potential customer or user of like public telecommunications transport 
networks or services or enhanced or value added services in like circumstances; 
  private network means a telecommunications transport network that is used exclusively for 
intracorporate communications or among pre-defined persons;  
 protocol means a set of rules and formats that gove rn the exchange of information between 
two peer entities for purposes of transferri ng signaling and/or da ta information; 
  public telecommunications transport network  means public telecommunications 
infrastructure that permits telecommunications between defined networ k termination points; 
 
 public telecommunications transport networks or services  means public 
telecommunications transport networks or public telecommunications transport services; 
  public telecommunications transport service  means any telecommunications transport 
service required by a Party, explicitly or in effect , to be offered to the public generally, including 
telegraph, telephone, telex and data transmission, that typically involves the real-time transmission of 
customer-supplied information between two or more points without any end-toend change in the form 
or content of the customer's information;   standard  means a document, approved by a recognized body, that provides, for common and 
repeated use, rules, guidelines or characteris tics for goods or related processes and production 
methods, or for services or related operating met hods, with which compliance is not mandatory. 
It may also include or deal exclusively with term inology, symbols, packaging, marking or labelling 
requirements as they apply to a good, pro cess, or production or operating method; 
  telecommunications  means the transmission and reception of signals by any electromagnetic 
means; WT/REG169/1 
Page 76  
 
 technical regulation  means a document which lays down goods' characteristics or their 
related processes and production methods, or servi ces' characteristics or their related operating 
methods, including the applicable administrative pr ovisions, with which compliance is mandatory. It 
may also include or deal exclusively with termi nology, symbols, packaging, marking or labelling 
requirements as they apply to a good, pro cess, or production or operating method; 
 
 telecommunications service  means a service provided by means of the transmission and 
reception of signals by any electromagnetic means,  but does not mean the cable, broadcast or other 
electromagnetic distribution of radio or televi sion programming to the public generally; and 
 
 terminal equipment  means any digital or analog device capable of processing, receiving, 
switching, signaling or transmitting signals by electro magnetic means and that is connected by radio 
or wire to a public telecommunications tr ansport network at a termination point. 
 
Article 12.2 
 
Scope And Coverage
 
 1. This Chapter applies to: 
(a) measures adopted or maintained by a Part y relating to access to and use of public 
telecommunications transport networks or services by persons of the other Party, 
including access and use by such pers ons operating private networks; 
(b) measures adopted or maintained by a Party relating to the provision of enhanced or 
value-added services by persons of the othe r Party in the territory, or across the 
borders, of a Party; and 
(c) standards-related measures relating to attach ment of terminal or other equipment to 
public telecommunications transport networks.
2 
2. Except to ensure that persons operating broadcast  stations and cable systems have continued 
access to and use of public telecommunications transp ort networks and services, this Chapter shall not 
apply to any measure adopted or maintained by a Pa rty relating to broadcast or cable distribution of 
radio or television programming. 
3. Nothing in this Chapter shall be construed to: 
(a) require a Party to authorize a person of the other Party to establish, construct, acquire, 
lease, operate or provide telecomm unications transport networks or 
telecommunications transport services; 
(b) require a Party, or require a Party to co mpel any person, to establish, construct, 
acquire, lease, operate or provide tel ecommunications transport networks or 
telecommunications transport services not offered to the public generally;  
(c) prevent a Party from prohibiting persons ope rating private networks from using their 
networks to provide public telecommunica tions transport networks or services to 
third persons; or 
                                                      
2 For equipment that is not connected to the pu blic telecommunications tr ansport network or not 
referred to in this Agreement, the Parties shall abide by the standard-related provisions of Chapter 9.  WT/REG169/1 
 Page 77 
 
 
(d) require a Party to compel any person engage d in the broadcast or cable distribution of 
radio or television programming to make ava ilable its cable or broadcast facilities as a 
public telecommunications transport network. 
Article 12.3 
 
Access To And Use Of Public Telecommuni cations Transport Networks And Services  
 1. Each Party shall ensure that persons of the other Party have access to and use of any public 
telecommunications transport network or service, in cluding private leased circuits, offered in its 
territory or across its borders for the conduct of  their business, on reasonable and non-discriminatory 
terms and conditions, including as those set out in paragraphs 2 through 8. 
2. Subject to paragraphs 6 and 7, each Party sha ll ensure that persons of the other Party are 
permitted to: 
(a) purchase or lease, and attach terminal or other equipment that interfaces with the 
public telecommunications transport network; 
(b) interconnect private leased or owned circ uits with public telecommunications 
transport networks in the territory, or acro ss the borders, of that Party, including those 
for use in providing dial-up access to and from their customers or users, or with circuits leased or owned by another pers on on terms and conditions mutually agreed 
by those persons; 
(c) perform switching, signaling a nd processing functions; and  
(d) use operating protocols of their choice. 
3. Each Party shall ensure that the pricing of public telecommunications transport services 
reflects economic costs directly related to providing the services. 
4. Each Party shall ensure that persons of th e other Party may use public telecommunications 
transport networks or services for the movement of information in its territory or across its borders, 
including for intracorporate communications, and for access to information contained in data bases or 
otherwise stored in machine-readable form  in the territory of the other Party. 
5. Further to Article 20.1, nothing in this Chap ter shall be construed to prevent a Party from 
adopting or enforcing any measure necessary to: 
(a) ensure the security and confidentiality of messages; or 
(b) protect the privacy of subscribers to public  telecommunications transport networks or 
services. 
6. Each Party shall ensure that, further to Artic le 12.5, no condition is imposed on access to and 
use of public telecommunications transport networ ks or services, other than that necessary to: 
(a) safeguard the public service responsibilities of providers of public 
telecommunications transport networks or services, in particular their ability to make 
their networks or services available to the public generally; or  
(b) protect the technical integrity of public telecommunications transport networks or 
services. WT/REG169/1 
Page 78  
 
7. Provided that conditions for access to and use of public telecommunications transport 
networks or services satisfy the criteria set out in paragraph 6, such conditions may include: 
(a) a restriction on resale or shared use of such services; 
(b) a requirement to use specified technical interfaces, including interface protocols, for 
interconnection with such networks or services; 
(c) a restriction on interconnection of privat e leased or owned circuits with such 
networks or services or with circuits l eased or owned by another person; and  
(d) a licensing, permit, registration or notifi cation procedure which, if adopted or 
maintained, is transparent and appli cations filed thereunder are processed 
expeditiously. 
Article 12.4 
 
Conditions For The Provision Of E nhanced Or Value-Added Services
 
 1. Each Party shall ensure that: 
(a) any licensing, permit, registration or notifi cation procedure that it adopts or maintains 
relating to the provision of enhanced or  value-added services is transparent and non-
discriminatory, and that applications f iled thereunder are processed expeditiously; 
and 
(b) information required under such procedures is limited to that necessary to 
demonstrate that the applicant has the fina ncial solvency to begin providing services 
or to assess conformity of the applicant' s terminal or other equipment with the 
applicable standards or technical regulations of the Party. 
2. Neither Party may require a person providi ng enhanced or value-added services to:  
(a) provide those services to the public generally; 
(b) cost-justify its rates; 
(c) file a tariff; 
(d) interconnect its networks with any pa rticular customer or network; or 
(e) conform with any particular standard or technical regulation for interconnection other 
than for interconnection to a public te lecommunications transport network. 
3. Notwithstanding paragraph 2(c), a Party may require the filing of a tariff by: 
(a) such a provider to remedy a practice of th at provider that the Party has found in a 
particular case to be anti-competitive under its law; or 
(b) a monopoly to which Article 12.6 applies.  WT/REG169/1 
 Page 79 
 
 
Article 12.5 
 
Standards-Related Measures  
 1. Further to the TBT Agreement, each Party sha ll ensure that its standards-related measures 
relating to the attachment of terminal or other e quipment to the public telecommunications transport 
networks, including those measures relating to th e use of testing and measuring equipment for 
conformity assessment procedures, are adopted or  maintained only to the extent necessary to: 
(a) prevent technical damage to public telecommunications transport networks; 
(b) prevent technical interference with, or degradation of, public telecommunications 
transport services; 
(c) prevent electromagnetic interference, and ensu re compatibility, with other uses of the 
electromagnetic spectrum; 
(d) prevent billing equipment malfunction; 
(e) ensure users' safety and access to public telecommunications transport networks or 
services; 
(f) ensure the electrical safety of communication equipment; or 
(g) facilitate the efficient utilization of radio spectrum resources. 
2. A Party may require, before an unauthorized te rminal or other equipment may be marketed, 
an approval for the attachment to the public teleco mmunications transport network, provided that the 
criteria for that approval are c onsistent with paragraph 1. 
3. Each Party shall ensure that the network term ination points for its public telecommunications 
transport networks are defined on a reasonable and transparent basis.  
4. Neither Party may require separate authorization for equipment that is connected on the 
customer's side of authorized equipment that serves as a protective device fulfilling the criteria of 
paragraph 1. 
5. Further to the TBT Agreement, each Party shall: 
(a) ensure that its conformity assessment procedures are transparent and non-
discriminatory and that applications file d thereunder are processed expeditiously; 
(b) permit any technically qualified entity to  perform the testing required under the 
Party's conformity assessment procedures for terminal or other equipment to be attached to the public telecommunications tr ansport network, subject to the Party's 
right to review the accuracy and completeness of the test results; and 
(c) ensure that any measure that it adopts or ma intains requiring persons to be authorized 
to act as agents for suppliers of teleco mmunications equipment before the Party's 
relevant conformity assessment bodies is non-discriminatory. 
6. No later than one year after the date of entry into force of this Agreement, each Party shall 
adopt, as part of its conformity assessment procedur es, provisions necessary to accept the test results 
from laboratories or testing facilities in the territo ry of the other Party for tests performed in WT/REG169/1 
Page 80  
 
accordance with the accepting Party's standards-re lated measures and procedures. For the detailed 
procedures and methods for mutual recognition of te sting laboratories and mutual acceptance of test 
reports, follows the procedures and methods as prescr ibed in the “Asia-Pacific Economic Cooperation 
(APEC) Mutual Recognition Arrangement for C onformity Assessment of Telecommunications 
Equipment (adopted on May 8, 1998)” shall be take n into consideration by the Telecommunication 
Committee. 
7. The Parties hereby establish a Committee on Telecommunications Standards, comprising 
representatives of each Party. 
8. The Committee on Telecommunications Standards shall perform the functions set out in 
Annex 12.5.8. 
Article 12.6 
 
Monopolies
 
 1. Where a Party maintains or designates a m onopoly to provide public telecommunications 
transport networks or services, and the monopoly, di rectly or through an affiliate, competes in the 
provision of enhanced or value-added services or other telecommunications-related services or 
telecommunications-related goods, the Party sha ll ensure that the monopoly does not use its 
monopoly position to engage in anti- competitive conduct in those markets, either directly or through 
its dealings with its affiliates, in such a manner as to  affect adversely a person of the other Party. Such 
conduct may include cross-subsidization, predat ory conduct and the discriminatory provision of 
access to public telecommunications tr ansport networks or services.  
2. To prevent such anti-competitive conduct, each Party shall adopt or maintain, as stated in 
paragraph 1, effective measures, such as: 
(a) accounting requirements; 
(b) requirements for structural separation; 
(c) rules to ensure that the monopoly accords its competitors access to and use of its 
public telecommunications transport networ ks or services on terms and conditions no 
less favorable than those it accords to  itself or its affiliates; and  
(d) rules to ensure the timely disclosure of technical changes to public 
telecommunications transport networks and their interfaces. 
Article 12.7 
 
Transparency
 
  Further to Article 17.3, each Party shall ma ke publicly available its measures relating to 
access to and use of public telecommunications trans port networks or services, including measures 
relating to: 
 
(a) tariffs and other terms and conditions of service; 
(b) specifications of technical interfaces with the networks or services; 
(c) information on bodies responsible for the preparation and adoption of standards-
related measures affecting such access and use;  WT/REG169/1 
 Page 81 
 
 
(d) conditions applying to attachment of term inal or other equipment to the networks; 
and 
(e) notification, permit, registration, or licensing or concession requirements. 
Article 12.8 
 
Relation To Other Chapters  
  In the event of any inconsistency between this Chapter and another Chapter in this 
Agreement, this Chapter shall prevail to  the extent of the inconsistency.  
 
Article 12.9 
 
Relation To International Or ganizations And Agreements
 
  The Parties recognize the importance of intern ational standards for global compatibility and 
interoperability of telecommunication networks or services and undertake to promote those standards 
through the work of relevant international bodi es, including the International Telecommunication 
Union and the International Orga nization for Standardization. 
 
Article 12.10 
 
Technical Cooperation And Other Consultations
 
 1. To encourage the development of interope rable telecommunications transport services 
infrastructure, the Parties shall cooperate in the exch ange of technical information, the development of 
government-to-government training  programs and other related ac tivities. In implementing this 
obligation, the Parties shall give special emphasis to existing exchange programs. 
2. The Parties shall consult with a view to determ ining the feasibility of further liberalizing trade 
in all telecommunications services, including pub lic telecommunications transport networks and 
services. 
 
ANNEX 12.1 
 
Conformity Assessment Procedures
 
 
For Chile: 
 1. The competent institution responsible for the a doption of conformity assessment procedures is 
the Undersecretary of Telecommunications, Minist ry of Transport and Telecommunications, or its 
successor. 
2. The existing measures are the following: 
(a) Law 18.168, Official Gazette, October 2, 1982, General Law of Telecommunications 
("Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones”) 
(b) Supreme Decree 220 of the Ministry of Transport and Telecommunications, Official 
Gazette, January 8, 1981 WT/REG169/1 
Page 82  
 
(c) Regulation on the Homologation of Telephone  Equipment (Decreto 220 de Ministerio 
de Transportes y Telecomunicaciones, Diario  Oficial, enero 8, 1981, "Reglamento de 
Homologación de Aparatos Telefónicos") 
For Korea: 
 1. The competent institution responsible for the a doption of conformity assessment procedures is 
the Ministry of Information and Communication, or its successor. 
2. The existing measures are the following: 
(a) Areas of Type Approval 
  • Telecommunications Basic Act (Act No. 5454, Dec. 13, 1997) 
 
- Enforcement Decree of Telecommunications Basic Act (Presidential 
Decree No. 15282, Feb. 22, 1997) 
- Enforcement Regulations of Telecommunications Basic Act 
(Ordinance of the Ministry of Information and Communication No. 64, 
Feb. 26, 1999): definitions of the type approval items, and application 
and process procedures 
- Regulations on the Technical Standards of Telecommunications 
Facilities (Ordinance of the Ministry of Information and Communication No. 58, Dec. 1, 1998) 
- Terminal-installment Technical Re gulations (Ministry of Information 
and Communication Announcement No. 1998-18, Feb. 21, 1998): 
definitions of the technical regulations of terminal-installment equipment 
 
(b) Areas of Type Verification and Type Registration of Wireless Equipment  
  • Radio Waves Act (Act No. 5637, Jan. 18, 1999) 
 
- Enforcement Decree of the Radio Waves Act (Presidential Decree 
No.16158, March 3, 1999) 
- Enforcement Regulations of the Radio Waves Act (Ordinance of the 
Ministry of Information and Communication No. 53, July 31, 1998) 
- Confirmation Regulations on Type Ve rification, Type Registration and 
Technical Standard Certification fo r Wireless Facility (Ordinance of 
the Ministry of Information and Communication No. 52, July 16, 1998): definitions of the object of verification or registration, and the application and process procedure 
- Regulations on Wireless Facilities (Ordinance of the Ministry of 
Information and Communication No. 45, Jan. 31, 1998): definitions of the technical regulations 
 
(c) Areas of Electromagnetic Compatibility Registration 
  • Radio Waves Act (Act No. 5637, Jan.18, 1999) 
 
- Regulations on Electromagnetic Compatibility Registration (Act No. 
39, May 8, 1997): definitions of th e registration items, application and 
process procedures, and relevant technical regulations 
  WT/REG169/1 
 Page 83 
 
 
ANNEX 12.5.8 
 
Committee On Telecommunications Standards  
 1. The Committee on Telecommunications Standards,  established under Article 12.5.7, shall 
comprise representatives of each Party. 
2. The Committee shall, within six months of the date of entry into force of this Agreement, 
develop a work program, including a timetable, for ma king compatible to the greatest extent possible, 
the standards-related measures of the Parties for au thorized equipment as defined in this Chapter. 
3. The Committee may address other appropriate  standards-related matters regarding 
telecommunications equipment or services and su ch other matters as it considers appropriate. 
4. The Committee shall take into account relevant wo rk carried out by the Parties in other fora, 
and that of non-governmental standardizing bodies. 
 
CHAPTER 13 : TEMPORARY ENTRY FOR BUSINESS PERSONS 
 
Article 13.1 
 
Definitions
 
  For purposes of this Chapter: 
 
 business person  means a citizen of a Party who is engaged in trade in goods, the provision of 
services or the conduct of investment activities; and   temporary entry  means entry into the territory of a Party by a business person of the other 
Party without the intent to establish permanent residence. 
 
Article 13.2 
 
General Principles
 
 
1. Further to Article 1.2, this Chapter reflects the preferential trading relationship between the 
Parties, the desirability of facilitating temporary entry on a reciprocal basis and of establishing 
transparent criteria and procedures for temporary entr y, and the need to ensure border security and to 
protect the domestic labour force and permanen t employment in their respective territories. 
2. The Parties reconfirm their voluntary commitmen ts established in the APEC Business Travel 
Card “Operating Framework”. This recognition shal l be understood to be under the APEC general 
principles. 
Article 13.3 
 
General Obligations  
 
1. Each Party shall apply its measures relating to  the provisions of this  Chapter in accordance 
with Article 13.2 and, in particular, shall appl y expeditiously those measures so as to avoid unduly 
impairing or delaying trade in goods or servi ces or conduct of investment activities under this 
Agreement. WT/REG169/1 
Page 84  
 
2. The Parties shall endeavour to develop a nd adopt common criteria, definitions and 
interpretations for the implementation of this Chapter. 
Article 13.4 
 
Grant Of Temporary Entry
 
 
1. In accordance with this Chapter and subject to the provisions of Annex 13.4 and Annex 
13.4.1, each Party shall grant temporary entry to  business persons who are otherwise qualified for 
entry under applicable measures relating to pu blic health and safety and national security.  
2. A Party may refuse to issue an immigration doc ument authorizing employment to a business 
person where the temporary entry of that person might affect adversely:  
(a) the settlement of any labour dispute that is  in progress at the place or intended place 
of employment; or 
(b) the employment of any person who is involved in such dispute. 
3. When a Party refuses pursuant to paragraph 2 to  issue an immigration document authorizing 
employment, it shall: 
(a) inform in writing the business person of the reasons for the refusal; and 
(b) promptly notify the other Party in writing of the reasons for the refusal. 
4. Each Party shall limit any fees for processing a pplications for temporary entry of business 
persons to the approximate cost of services rendered. 
Article 13.5 
 
Provision Of Information  
 1. Further to Article 17.3, each Party shall: 
(a) provide to the other Party such materials as will enable the latter Party to become 
acquainted with its own measures relating to this Chapter; and 
(b) no later than six months after the date of en try into force of this Agreement, prepare, 
publish and make available in its own territory , and in the territory of the other Party, 
explanatory material in a consolidated  document regarding the requirements for 
temporary entry under this Chapter in such  a manner as will enable business persons 
of the other Party to become acquainted with them. 
2. Each Party shall collect and maintain, and make  available to the other Party in accordance 
with its domestic law, data regarding the granting of temporary entry under this Chapter to business 
persons of the other Party who have been issued immigration documentation, including data specific 
to each occupation, profession or activity.  WT/REG169/1 
 Page 85 
 
 
Article 13.6 
 
Working Group  
  The Parties hereby establish a Temporary Entry Working Group, comprising representatives 
of each Party, including immigration officials, to consider the implementation and administration of 
this Chapter and any measures of mutual interest.   
Article 13.7 
 
Dispute Settlement
 
 1. A Party may not initiate proceedings under Artic le 19.6 regarding a refusal to grant temporary 
entry under this Chapter or a particul ar case arising under Article 13.2 unless: 
(a) the matter involves a pattern of practice; and 
(b) the business person has exhausted the availa ble administrative remedies regarding the 
particular matter. 
2. The remedies referred to in subparagraph 1(b) shall be deemed to be exhausted if a final 
determination in the matter has not  been issued by the competent au thority within six months of the 
institution of an administrative proceeding, and the fa ilure to issue a determination is not attributable 
to delay caused by the business person.  
Article 13.8 
 
Relation To Other Chapters
 
  Except for this Chapter, Chapters 1, 2, 18, 19 and 21 and Articles 17.2, 17.3, 17.4 and 17.6, 
no provision of this Agreement shall impose any ob ligation on a Party regarding its immigration 
measures.   
ANNEX 13.4 
 
Temporary Entry For Business Persons
 
 
Section I - Business Visitors  
 1. Each Party shall grant temporary entry to a business person seeking to engage in a business 
activity set out in Appendix 13.4.I.1, without requiring that person to obtain an employment 
authorization, provided that the business person otherwise complies with existing immigration 
measures applicable to temporary entry, on presentation of: 
(a) proof of citizenship of a Party; 
(b) documentation demonstrating that the business person will be so engaged and 
describing the purpose of entry; and  
(c) evidence demonstrating that the proposed bus iness activity is international in scope 
and the business person is not seeking to enter the local labour market. WT/REG169/1 
Page 86  
 
2. Each Party shall provide that a business pers on may satisfy the requirements of subparagraph 
1(c) by demonstrating that: 
(a) the primary source of remuneration for the proposed business activity is outside the 
territory of the Party granting temporary entry; and 
(b) the business person's principal place of business and the actual place of accrual of 
profits, at least, predominantly, remain outside such a territory. 
3. Each Party shall grant temporary entry to a business person seeking to engage in a business 
activity other than those set out in Appendix 13.4.I.1, without requiring that person to obtain an employment authorization, on a basis no less fa vourable than that provided under the existing 
provisions of the measures set out in Appendix 13.4. I.3, provided that the business person otherwise 
complies with existing immigration measures applicable to temporary entry.  
4. Neither Party may: 
(a) as a condition for temporary entry under pa ragraph 1 or 3, require prior approval 
procedures, petitions, labour certification test s or other procedures of similar effect; 
or 
(b) impose or maintain any numerical restri ction relating to temporary entry under 
paragraph 1 or 3. 
5. Notwithstanding paragraph 4, a Party may re quire a business person seeking temporary entry 
under this Section to obtain a visa or its equivalent  in accordance with its domestic immigration law 
prior to entry. Before imposing the visa requirement, the Party shall consult with the other Party with 
a view to avoiding the imposition of the requirement. With respect to an existing visa requirement, a 
Party shall consult, upon request, with the other Party with a view to its removal. 
Section II - Traders And Investors
 
 1. Each Party shall grant temporary entry and provide confirming documentation to a business 
person seeking to: 
(a) carry on substantial trade in goods or services principally between the territory of the 
Party of which the business person is a citizen and the territory of the other Party into 
which entry is sought, or 
(b) establish, develop, administer or provide advice or key technical services to the 
operation of an investment to which th e business person or the business person's 
enterprise has committed, or is in the pro cess of committing, a substantial amount of 
capital,  
in a capacity that is supervisory or executive, or involves essential skills, pr ovided that the business 
person otherwise complies with existing immigra tion measures applicable to temporary entry. 
 2. Neither Party may: 
(a) as a condition for temporary entry under para graph 1, require labour certification tests 
or other procedures of similar effect; or 
(b) impose or maintain any numerical restri ction relating to temporary entry under 
paragraph 1.  WT/REG169/1 
 Page 87 
 
 
3. Notwithstanding paragraph 2, a Party may re quire a business person seeking temporary entry 
under this Section to obtain a visa or its equivalent  in accordance with its domestic immigration law 
prior to entry. Before imposing the visa requirement, the Party shall consult with the other Party with 
a view to avoiding the imposition of the requirement. With respect to an existing visa requirement, a Party shall consult, upon request, with the other Party with a view to its removal. 
Section III - Intra-Company Transferees
 
 1. Each Party shall grant temporary entry and provide confirming documentation to a business 
person employed by an enterprise who seeks to rende r services to that enterprise of a Party or a 
subsidiary or affiliate thereof, in a capacity th at is managerial, executiv e or involves specialised 
knowledge, provided that the business person otherwi se complies with existing immigration measures 
applicable to temporary entry. A Party may re quire the business person to have been employed 
continuously by the enterprise for one year with in the three-year period immediately preceding the 
date of the application for admission. 
2. Neither Party may: 
(a) as a condition for temporary entry under para graph 1, require labour certification tests 
or other procedures of similar effect; or 
(b) impose or maintain any numerical restri ction relating to temporary entry under 
paragraph 1. 
3. Notwithstanding paragraph 2, a Party may re quire a business person seeking temporary entry 
under this Section to obtain a visa or its equivalent  in accordance with its domestic immigration law 
prior to entry. Before imposing visa requirement, th e Party shall consult with the other Party with a 
view to avoiding the imposition of the requirement . With respect to an existing visa requirement, a 
Party shall consult, upon request, with the other Party with a view to its removal. 
 
ANNEX 13.4.1 
 
In the case of Chile: 
 
1. Business persons who enter Chile under any of th e categories set out in Annex 13.4 shall be 
deemed to be engaged in activities wh ich are in the country's interest. 
2. Business persons who enter Chile under any of the categories set out in Annex 13.4 are issued 
with a temporary resident visa for a period up to on e year. Such a temporary visa may be extended for 
subsequent periods, provided the conditions on wh ich it is based remain in effect, without requiring 
that person to apply for permanent residence. 
3. Business persons who enter Chile may also obtain an identity card for foreigners.  
4. Business persons who enter Chile under any of  the categories set out in Annex 13.4 may 
freely enter and leave Chile without re-entry permission during the validity of their visas on the basis 
of reciprocity. 
In the case of Korea: 
 
1. Business visitors who enter Korea under Section I of Annex 13.4 are issued with a shortterm 
business visa (C-2) for a period of up to six months. A change of visa status to that of an intra-
company transferee visa (D-7), investment visa (D-8) or trade management visa (D-9), may be WT/REG169/1 
Page 88  
 
permitted, if the activities of the business visitors satisfy the conditions under Sections II and III of 
Annex 13.4. 
2. Investors and traders who enter Korea under Section II of Annex 13.4 are issued with an 
investment visa (D-8) or a trade and management vi sa (D-9), respectively, for a period of up to one 
year. These visas may be extended for subsequent pe riods provided the conditions on which they are 
based remain in effect. 
3. Intra-company transferees who enter Korea under Section III of Annex 13.4 are issued with 
an intra-company transferee visa (D-7 ) for a period of up to one year. This visa may be extended for 
subsequent periods provided the conditions on which it is based remain in effect. 
4. Business persons who enter Korea under any of the categories set out in Annex 13.4 may 
freely enter and leave Korea without re-entry permission during the validity of their visa on the basis 
of the reciprocity. 
5. Business persons who intend to stay over 90 days in Korea shall register the aliens 
registration at the competent immigration office.  
 
APPENDIX 13.4.I.1 
 
Business Visitors
 
 1. For purposes of this Appendix, “ territory of the other Party ” means the territory of the 
Party other than the territory of the Party into which temporary entry is sought.  
2. Business activities referred to in Section I.1 of Annex 13.4 are:  
Research and Design 
 
 • Technical, scientific and statistical rese archers conducting research for an enterprise 
located in the territory of the other Party. 
 
Growth, Manufacture and Production 
 
 • Purchasing and production manageme nt personnel conducting commercial 
transactions for an enterprise located in  the territory of the other Party. 
 Marketing 
 
 • Market researchers and analysts conducting analysis or research for an enterprise 
located in the territory of the other Party. 
 • Trade fair and promotional pe rsonnel attending a trade convention. 
 
Sales 
 
 • Sales representatives and agents taking or ders or negotiating contracts for goods or 
services for an enterprise located in the terr itory of the other Party but not delivering 
goods or providing services. 
 • Buyers purchasing for an enterprise locate d in the territory of the other Party. 
  WT/REG169/1 
 Page 89 
 
 
Distribution 
 
 • Customs brokers providing consulting services regarding the facilitation of the import 
or export of goods. 
 After-Sales Service  
 • Installers, repair and maintenance pers onnel, and supervisors, possessing specialised 
knowledge essential to a seller's contractua l obligation, performing services or 
training workers to perform services, pursuant to a warranty or other service contract 
incidental to the sale of commercial or i ndustrial equipment or machinery, including 
computer software, purchased from an enterp rise located outside the territory of the 
Party into which temporary entry is sought, during the life of the warranty or service 
agreement. 
 General Service 
 
 • Consultants engaging in a business activity at the cross-border services provision 
level.  
 • Management and supervis ory personnel engaging in a commercial transaction for an 
enterprise located in the territory of the other Party. 
 • Financial services personnel (insurers, ba nkers or investment brokers) engaging in 
commercial transactions for an enterprise locat ed in the territory of the other Party. 
 • Public relations and advertising pers onnel consulting with business associates, or 
attending or participating in conventions. 
 • Tourism personnel (tour and travel agents, t our guides or tour operators) attending or 
participating in conventions or conducting a t our that has begun in the territory of the 
other Party. 
 • Translators or interpreters performing se rvices as employees of an enterprise located 
in the territory of the other Party. 
  
APPENDIX 13.4.I.3 
 
Existing Immigration Measures 
 
1. In the case of Chile, Title I, paragraph 6 of Decree Law 1094, Official Gazette, July 19, 1975, 
Immigration Law (“Decreto Ley 1094,  Diario Oficial, julio 19, 1975, Ley de Extranjería”), and Title 
III of Immigration Regulation (“Decreto Supremo 597 del Ministerio del Interior, Diario Oficial 
noviembre 24, 1984, Reglamento de Extranjería”). 
2. In the case of Korea, Immigration Law Article 7 and Article 8 (amende d February 5, 1999), 
Immigration Law Enforcement Ordinance Article 7,  Article 11 and Article 12 (amended November 
27, 1999), Immigration Law Enforcement Regulations Article 8, Article 9, Article 10, Article 13, 
Article 18, Article 71 and Article 76 (amended D ecember 2, 1999), Visa I ssuance Procedure for 
Short-Term Business (C-2), Short-Term Visitors (C-3). 
 WT/REG169/1 
Page 90  
 
CHAPTER 14 : COMPETITION 
 
Article 14.1 
 
Definitions
 
 
 For the purpose of this Chapter:   competition laws  includes: 
 
(a) for Chile, Decree Law N° 211 of 1973 and Law N° 19.610 of 1999 and their 
implementing regulations or amendments; 
(b) for Korea, the Monopoly Regulation and Fair  Trade Act (Law no. 3320, 1980) and its 
implementing regulations and amendments; and 
(c) any changes that the legislations in subpa ragraphs (a) and (b) may undergo after the 
conclusion of this Agreement; 
 competition authority  means: 
 
(a) for Chile, the “Fiscalía Nacional Económica”; and 
(b) for Korea, the Fair Trade Commission; and  
 enforcement activity  means any application of competition laws by way of investigation or 
proceeding conducted by the competition authority of a Party, which may result in the imposition of 
penalties or remedies. 
 
Article 14.2 
 
Objectives
 
 1. The Parties undertake to apply their respective competition laws in a manner consistent with 
this Chapter so as to avoid that the benefits of  the liberalization process in goods and services may be 
diminished or cancelled out by anti-competitive busin ess conduct. To this end, the Parties agree to 
cooperate and coordinate between their competition authorities under the provisions of this Chapter. 
2. With a view to preventing distortions or restrictions on competition which may affect trade in 
goods or services between them, the Parties shall give particular attention to anti-competitive 
agreements, concerted practices and abusive behavior resulting from single or joint dominant 
positions. 
3. The Parties agree to cooperate and coordinate  between themselves for the implementation of 
competition laws. This cooperation includes notifica tion, consultation, exchange of nonconfidential 
information and technical assistance. The Parties acknowledge the importance of embracing principles on competition that would be accepted by both Parties in multilateral fora, including the 
WTO.  WT/REG169/1 
 Page 91 
 
 
Article 14.3 
 
Notifications  
 1. Each competition authority shall notify the comp etition authority of the other Party of an 
enforcement activity if it: 
(a) is liable to substantially affect the other Party's important interests; 
(b) relates to restrictions on competition which ar e liable to have a direct and substantial 
effect in the territory of the other Party; or 
(c) concerns anti-competitive acts taking place prin cipally in the territory of the other 
Party. 
2. Provided that it is not contrary to the Par ties’ competition laws and does not affect any 
investigation being carried out, notification shall be  given at an early stage of the procedure. The 
opinions received may be taken into considerati on by the other competition authority when taking 
decisions. 
3. The notifications given under paragraph 1 s hould be detailed enough to permit an evaluation 
in the light of the interests of the other Party. 
4. The Parties undertake to exert their best efforts to ensure that notifications are made in the 
circumstances set out above, taking into account the administrative resources available to them.  
Article 14.4 
 
Coordination Of Enforcement Activities
 
  The competition authority of a Party may notify the other Party’s competition authority of its intention to coordinate enforcement activities with respect to a specific case. This coordination shall 
not prevent the Parties from taking autonomous decisions.  
 
Article 14.5 
 
Consultations When The Important Interests Of A Party Are Adversely 
 
Affected In The Territory Of The Other Party  
 
1. Each Party shall, in accordance with its laws , take into consideration, as necessary, the 
important interests of the other Party in the c ourse of its enforcement activities. If the competition 
authority of a Party considers that an investiga tion or proceeding being conducted by the competition 
authority of the other Party may adversely affect such a Party's important interests, it may transmit its views on the matter to, or request consultation w ith, the other competition authority. Without 
prejudice to the continuation of any action under it s competition laws and to its full freedom of 
ultimate decision, the competition authority so addressed should give full and sympathetic consideration to the views expressed by  the requesting competition authority. 
2. The competition authority of a Party that consid ers that its interests are being substantially 
and adversely affected by anti-competitive practices of  whatever origin that are or have been engaged 
in by one or more enterprises located in the other Party may request consultations with the 
competition authority of that Party. Such consultations are without prejudice to the full freedom of 
ultimate decision of the competition authority con cerned. A competition authority so consulted may WT/REG169/1 
Page 92  
 
take whatever corrective measures under its competi tion laws, which it deems appropriate, consistent 
with its own domestic law, and without prejudice to its full enforcement discretion. 
Article 14.6 
 
Exchange Of Information And Confidentiality
 
 
1. With a view to facilitating the effective appli cation of their respective competition laws, the 
competition authorities may exchange non-confidential information. 
2. For the purpose of improving transparency, and without prejudice to the rules and standards 
of confidentiality applicable in each Party, the Parties hereby undertake to exchange information 
regarding sanctions and remedies applied in th e cases that, according to the competition authority 
concerned, are significantly affecting important interests of the other Party and to provide the grounds on which those actions were taken, when requested by the competition authority of the other Party. 
3. All exchange of information shall be subject to  the standards of confidentiality applicable in 
each Party. Confidential information whose disse mination is expressly prohibited or which, if 
disseminated, could adversely affect the interest of the Parties, shall not be provided without the 
express consent of the source of the information. 
4. Each competition authority shall maintain the c onfidentiality of any information provided to it 
in confidence by the other competition authority, an d shall not disclose such information to any entity 
that is not authorised by the competition authority that supplied the information.  
5. Notwithstanding the above provisions of this Ar ticle, where the laws of the Parties so 
provides, confidential information may be provided to their respective courts of justice, provided that 
confidentiality is maintained by the courts. 
Article 14.7 
 
Technical Assistance
 
 
 The Parties may provide each other with technical assistance in order to take advantage of their respective experiences and to strengthen th e implementation of their competition laws and 
policies.  
Article 14.8 
 
Public Enterprises And Enterprises Entruste d With Special Or Exclusive Rights, 
 
Including Designated Monopolies  
 1. Nothing in this Chapter prevents  the Parties from designating or maintaining public or private 
monopolies according to their respective laws. 
2. With regard to public enterprises and enterpri ses to which special or exclusive rights have 
been granted, including designated monopolies, the Co mmission shall ensure that, following the date 
of entry into force of this Agre ement, such enterprises shall be s ubject to the rules of competition, 
insofar as the application of such rules does not obst ruct the performance, in law or in fact, of the 
particular tasks assigned to them.  WT/REG169/1 
 Page 93 
 
 
Article 14.9 
 
Dispute Settlement  
  Neither Party may have recourse to disput e settlement procedures under Chapter 19 for any 
matter arising under this Chapter. 
 
 
PART IV : GOVERNMENT PROCUREMENT 
 
CHAPTER 15 : GOVERNMENT PROCUREMENT 
 
Article 15.1 
 
Definitions
 
 
For purposes of this Chapter:   entity means an entity of a Party covered in Annex 15.1; 
  government procurement  means the process by which a government, through any 
contractual means, obtains the use of or acquires go ods or services, or any combination thereof, for 
governmental purposes and not with a view to commercia l sale or resale, or use in the production  or 
supply of goods or services for commercial sale or resale;   offsets  means those conditions imposed or considered by an entity prior to, or in the course of 
its procurement process, that encourage local devel opment or improve its Party's balance of payments 
accounts by means of requirements of local conten t, licensing of technology, investment, counter-
trade or similar requirements;   open tendering procedures  means those procedures whereby any interested supplier may 
submit a tender; 
 
 privatisation means a process by means of which a pub lic 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;  
 public works concession and build-operate-transfer contract  means a contract of the same 
type as the public works procurement contract, except  for the fact that the remuneration for the works 
to be carried out consists either solely of the ri ght to exploit the construction or in such a right 
together with a payment;   supplier  means a natural or legal person that provi des or could provide goods or services to 
an entity; 
  technical specifications  means a specification, which lays down the characteristics of the 
products or services to be procured, such as qualit y, 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 
  tenderer means a supplier who has submitted a tender. 
 WT/REG169/1 
Page 94  
 
Article 15.2 
 
Scope And Coverage
 
 1. This Chapter applies to measures adopted or ma intained by a Party relating to procurement by 
an entity, by any contractual means, including purch ase and rental or lease, with or without an option 
to buy, subject to the conditions specified in A nnexes 15.1 and 15.2. For purposes of this Chapter, 
public works concession and build-operate-transfer co ntracts shall be considered as procurement. 
2. This Chapter does not apply to: 
(a) non-contractual agreements or any form of assistance provided by a Party or a state 
enterprise, including grants, loans, fi scal incentives, subsidies, guarantees, 
cooperative agreements, government provision of goods and services to persons or to 
state, regional or local governments, and purchases for the direct purpose of providing foreign assistance; 
(b) purchases funded by international grants, loans or other assistance, where the 
provision of such assistance is subject to c onditions inconsistent with the provisions 
of this Chapter; 
(c) hiring of government employees and hiring of entities’ other long-term staff and 
personnel, and related em ployment measures; and 
(d) financial services. 
3. Neither Party may prepare, design or otherwise structure any procurement contract in order to 
avoid the obligations under this Chapter. 
Article 15.3 
 
National Treatment And Non-Discrimination
 
 
1. Each Party shall ensure that the procurement of  its entities covered by this Chapter takes place 
in a transparent, reasonable and non-discriminator y manner, treating any supplier of either Party 
equally and ensuring the principle of open and effective competition.  
2. With respect to any laws, regulations, pr ocedures and practices regarding government 
procurement covered by this Chapter, each Party shall grant the goods, services and suppliers of the 
other Party a treatment no less favourable than that accorded by it to domestic goods, services and 
suppliers. 
3. With respect to any laws, regulations, pr ocedures and practices regarding government 
procurement covered by this Chap ter, each Party shall ensure: 
(a) that its entities do not treat a locally-established supplier less favourably than any 
other locally-established supplier on the basi s of the degree of foreign affiliation to, 
or ownership by, a person of the other 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 the other Party.  WT/REG169/1 
 Page 95 
 
 
4. This Article shall not apply to measures concer ning 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 an d formalities, nor to measures affecting trade in 
services other than measures specifically governin g procurement covered by this Chapter. 
Article 15.4 
 
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. 
Article 15.5 
 
Transparency
 
 
1. Each Party shall promptly publish any law, re gulation, judicial decision and administrative 
ruling of general application and procedure, in cluding standard contract clauses, regarding 
procurement covered by this Chapter, in the appr opriate publications, including officially designated 
electronic media. 
2. Each Party shall promptly publish in the same  manner as in paragraph 1 any modification to 
such measures therein.  
Article 15.6 
 
Tendering Procedures  
 1. Entities shall award their public contracts by open tendering procedures according to their 
respective domestic procedures, in compliance with th is Chapter and in a non-discriminatory manner. 
2. Provided that the tendering procedure is not u sed to avoid competition or to protect domestic 
suppliers, entities shall be allowed to award cont racts by means other than an open tendering 
procedure in the following circumstances and subject  to the following conditions, where applicable: 
(a) in the absence of tenders that conform to the essential requirements in the tender 
documentation provided in a prior tendering procedure, including any conditions for 
participation, provided that  the requirements of the initial procurement are not 
substantially modified in the contract as awarded; 
(b) where, for works of art, or for reasons connected with the protection of exclusive 
rights, such as patents, copyrights or pr oprietary information or in the absence of 
competition for technical reasons, the goods or services can be supplied only by a 
particular supplier and no reasonable alternative or substitute exists;  
(c) for additional deliveries by the original  supplier that are intended either as 
replacement parts, extensions, or con tinuing services for existing equipment, 
software, services or installations, where a change of supplier would compel the 
entity to procure goods or services not me eting requirements of interchangeability 
with existing equipment, software, services, or installations; 
(d) for quoted goods purchased on a commodity market and for purchases of goods made 
under exceptionally advantageous conditions, wh ich only arise in the very short term 
in the case of unusual disposals, and not for routine purchases from regular suppliers; WT/REG169/1 
Page 96  
 
(e) when an entity procures prototypes or a fi rst good or service which are developed at 
its request in the course of, and for, a particular contract for research, experiment, study or original development; 
(f) when additional construction services which we re not included in the initial contract 
but which were within the objectives of th e original tender documentation have, due 
to unforeseeable circumstances, become necessary to complete the construction 
services described therein, provided that the total value of contracts awarded for 
additional construction services does not exceed 50 per cent of the amount of the main contract; or 
(g) insofar as it is strictly necessary where, fo r reasons of extreme urgency brought about 
by events unforeseeable by the entity, the goods  or services could not be obtained in 
time under an open tendering procedure and the use of such procedure would result in 
serious injury to the entity, the entity’s  program responsibilities or the responsible 
Party. This exception may not be used as a result of a lack of advance planning or 
concerns relating to the amount of funds av ailable to an entity within a particular 
period of time. 
3. The Parties shall ensure that, whenever it is necessary for entities to resort to a procedure 
other than open tendering procedures based on the circ umstances set forth in paragraph 2, the entities 
shall maintain a record or prepare a written repor t providing specific justification for the contract. 
Article 15.7 
 
  Conditions For Suppliers’ Pa rticipation In Procurement
 
 1. Where an entity requires suppliers to satisfy registration, qualification, or any other 
requirements or conditions before being permitted to participate in a procurement, each Party shall 
ensure that a notice inviting suppliers to apply for registration, qualification or demonstration of the 
suppliers' satisfaction of any other conditions for participation is pub lished sufficiently in advance for 
interested suppliers to prepare and submit respons ive applications and for entities to evaluate and 
make their determinations based on such applications.  
2. Each Party shall ensure that any conditions for participation in a procurement are limited to 
those that are essential to ensure  that the potential supplier has the legal, technical and financial 
abilities to fulfill the requirements and technical specifications of the procurement and that 
qualification decisions are based solely on the conditions  for participation that have been specified in 
advance in notices or tender documentation. 
3. Entities shall be allowed to establish a publicly  available list of s uppliers qualified to 
participate in procurements. Where an entity require s suppliers to qualify for such a list before being 
permitted to participate in a procurement, and a supplier that has not previously satisfied such 
requirements or conditions submits an application, the entity shall promptly start the relevant 
procedures and shall allow such supplier to participat e in the procurement, provided there is sufficient 
time to complete the procedures within the time period established for tendering. 
4. Entities shall not impose the condition that, in order for a supplier to participate in a 
procurement, the supplier has previously been awar ded one or more contracts by an entity of that 
Party or that the supplier has prior work e xperience in the territory of that Party.  WT/REG169/1 
 Page 97 
 
 
Article 15.8 
 
Publication Of Advance Notices  
 1. For each contract covered by this Chapter, entities shall publish in advance a notice inviting 
interested suppliers to submit tenders for that contract, except as provided for in Article 15.6.2. 
2. The information in each advance notice of inte nded procurement shall include a description of 
the intended procurement, any conditions that suppliers  must fulfill to participate in the procurement, 
the name of the entity, the address where all docum ents relating to the procurement may be obtained 
and the time limits for submission of tenders. 
3. Entities shall publish the notices in a timely ma nner 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 poi nt of access specified in Annex 15.2.  
Article 15.9 
 
Tender Documentation
 
 1. Tender documentation provided to suppliers shall contain all information necessary to permit 
them to submit responsive tenders. 
2. Where contracting entities do not offer free dir ect access to the entire tender documents and 
any supporting documents by electronic means, en tities shall make promptly available the tender 
documentation at the request of any supplier of the Parties. 
Article 15.10 
 
Time-Limits
 
 
1. Time-limits established by the entities during a procurement process shall be sufficiently long 
to enable suppliers to prepare and submit responsive tenders, in relation to the nature and complexity 
of the procurement. 
2. Notwithstanding paragraph 1, entities shall establis h no less than ten days between the date on 
which the advance notice of intended procurement is  published and the final date for the submission 
of tenders. 
  Article 15.11  
 
Technical Specifications  
 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: 
(a) be in terms of performance and functiona l requirements, rather than design or 
descriptive characteristics; and WT/REG169/1 
Page 98  
 
(b) be based on international standards, where th ey exist or, in absence of such standards, 
on national technical regulations
3, recognised national standards4 or building codes.  
4. Paragraph 3 does not apply when the entity ma y objectively demonstrate that the use of 
technical specifications referred to in that paragr aph would be ineffective or inappropriate for the 
fulfillment 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 ar e fit for the purpose intended. The reference to 
technical specifications in the tender document s 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 s upplier, unless there is no sufficiently precise or 
intelligible way of describing the procurement requ irements 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 its bid meets the essential 
requirements. 
Article 15.12 
 
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 documentatio n and be submitted by a tenderer who complies 
with the conditions for participation. 
2. Unless an entity determines that it is not in th e public interest to award a contract, entities 
shall award the contract to the tenderer who has be en determined to be fully capable of undertaking 
the contract and whose tender is determined to be the most advantageous in terms of the requirements 
and evaluation criteria set forth in the tender documentation.  
3. Each Party shall ensure that its entities provide for effective dissemination of the results of 
government procurement processes. 
Article 15.13 
 
Bid Challenges
 
 1. Entities shall accord impartial and timely cons ideration to any complaints from suppliers 
regarding an alleged breach of this Chapter in the context of a procurement procedure. 
                                                     
 
3 For the purpose of this Chapter, a technical regu lation 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 labelling requirements as they apply to a product, service, process or production method. 
4 For the purpose of this Chapter, a standard is a document approved by a recognised body, that 
provides, for common and repeat ed use, rules, guidelines or characteris tics 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 labelling requirements as they apply to a product, 
service, process or production method.  WT/REG169/1 
 Page 99 
 
 
2. Each Party shall provide non-discriminatory, tim ely, 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 subj ect to judicial review or shall have procedural 
guarantees similar to those of a court. 
4. Challenge procedures shall provide for, if appropr iate, correction of the breach of this Chapter 
or, in the absence of such correction, compensati on for the loss or damages suffered, which may be 
limited to costs for tender preparation and protest. 
  Article 15.14  
 
Information Technology And Cooperation  
 1. The Parties shall, to the extent possible, e ndeavour to use electronic means of communication 
to permit efficient dissemination of information on government procurement, particularly as regards 
tender opportunities offered by entities, while resp ecting the principles of transparency and non-
discrimination. 
2. The Parties shall endeavour to provide each other with technical cooperation and assistance 
through the development of training programs with a view to achieving a better understanding of their 
respective government procurement systems and stat istics, as well as a better access to their respective 
markets. 
Article 15.15 
 
Modifications To Coverage
 
 1. A Party may modify its coverage unde r this Chapter, provided that it: 
(a) notifies the other Party of the modification; and 
(b) provides the other Party, 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 subparagraph 1(b), no compensato ry adjustments shall be provided to the 
other Party where the modification by a Party of its coverage under this Chapter concerns: 
(a) rectifications of a purely formal nature and minor amendments to Annex 15.1; or 
(b) one or more covered entities on which government control or influence has been 
effectively eliminated as a result of privatisation. 
3. Where appropriate, the Commission shall by deci sion modify the relevant Annex to reflect 
the modification notified by the Party concerned. WT/REG169/1 
Page 100  
 
Article 15.16 
 
Further Negotiations
 
  In the case that either Party offers, in th e future, a non-Party additional advantages with 
regard to the government procurement market acce ss coverage agreed under this Chapter, it shall 
agree, upon request of the other Party, to enter in to negotiations with a vi ew to extending coverage 
under this Chapter on a reciprocal basis.  
Article 15.17 
 
Government Procurement Working Group
 
  Upon request of a Party, the Parties sha ll convene a Government Procurement Working 
Group to address issues related to the implementati on of this Chapter. Such issues may include: 
 
(a) bilateral cooperation relating to the development and use of electronic 
communications in government procurement systems; 
(b) exchange of statistics and other inform ation 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 co mmitments under this Chapter. 
 
ANNEX 15.1 
 
Coverage On Government Procurement
 
 
APPENDIX 1 
 
Entities At Central Level  
 
1. Thresholds 
 
Supplies 
Specified in Appendix 4 
Thresholds SDR 50,000  Services 
Specified in Appendix 5 
Thresholds SDR 50,000  
Construction Services 
Specified in Appendix 6 Thresholds SDR 5,000,000 
 
2. Chile’s List of Entities 
Presidencia de la República 
(Office of the President of the Republic) 
  WT/REG169/1 
 Page 101 
 
 
Ministerio del Interior 
  (Ministry of the Interior)  
 
Subsecretaría de Interior   (Vice-Ministry of the Interior) 
Subsecretaría de Desarrollo Regional 
  (Office of the Vice-Minister for Regional Development) Oficina Nacional de Emergencia (ONEMI) 
  (Bureau for National Emergencies) Dirección de Seguridad Publica e Información 
  (Directorate for Public Security and Information) 
Comité Nacional Control de Estupefacientes (CONACE)   (National Narcotics Control Committee) Servicio Electoral   (Electoral Bureau) 
Fondo Nacional 
  (National Fund) 
 
Ministerio de Relaciones Exteriores   (Ministry of Foreign Affairs) 
Subsecretaría de Relaciones Exteriores   (Vice-Ministry of Foreign Affairs) 
Dirección General de Relacion es Económicas Internacionales 
  (General Directorate for International Economic Affairs) Instituto Antártico Chileno (INACH)   (Chilean Institute for the Antarctica) 
Dirección de Fronteras y Límites (DIFROL) 
  (Administration of Borders and Frontiers)  
Ministerio de Defensa Nacional 
  (Ministry of National Defense) 
Subsecretaría de Guerra   (Vice-Ministry of Army Affairs) 
Subsecretaría de Marina   (Vice-Ministry of Navy Affairs) Subsecretaría de Aviación   (Vice-Ministry of the Air Force Affairs) 
Subsecretaría de Carabineros 
  (Vice-Ministry of Military Police Affairs) Subsecretaría de Investigaciones   (Vice-Ministry of Investigative Police) Dirección Administrativa del Ministerio de Defensa Nacional   (Administrative Directorate of the Ministry of National Defense) 
Dirección de Aeronáutica Civil 
  (Civil Aeronautics Directorate) Dirección General de Movilización Nacional   (General National Mobilization Directorate) Academia Nacional de Estudios Po líticos y Estratégicos (ANEPE) 
  (National Academy of Political and Strategic Studies) 
Dirección General de Defensa Civil   (General Directorate for Civil Defense)  WT/REG169/1 
Page 102  
 
Ministerio de Hacienda 
  (Ministry of Finance) 
Subsecretaría de Hacienda 
  (Vice-Ministry of Finance) Dirección de Presupuestos 
  (Budget Directorate) 
Servicio de Impuestos Internos (SII)   (Internal Revenue Service) Tesorería General de la República   (General Treasury of the Republic) 
Servicio Nacional de Aduanas 
  (National Customs Service) Casa de Moneda   (National Mint) Dirección de Aprovisionamiento del Estado (Chilecompra) 
  (Government Procurement Directorate) 
Superintendencia de Bancos  e Instituciones Financieras 
  (Superintendency of Bank s and Financial Institutions) 
Superintendencia de Valores y Seguros   (Superintendency of Stock Corporations and Insurance Companies)  Ministerio Secretaría General de la Presidencia   (Ministry of the General Secretariat of the President’s Office) 
Subsecretaría General de La Presidencia 
  (General Vice-Ministry of the President’s Office) Comisión Nacional del Medio Ambiente (CONAMA) 
  (National Environmental Commission) 
 
Ministerio Secretaría General de Gobierno 
  (Ministry of the General Secretariat of Government) 
Subsecretaría General de Gobierno 
  (Vice-Ministry of the General Secretariat of Government) 
Instituto Nacional del Deporte (IND) 
  (National Sports Institute) División de Organizaciones Sociales (DOS)   (Social Organizations Department) Secretaría de Comunicación y Cultura (SECC) 
  (Secretariat of Communication and Culture) 
 
Ministerio de Economía, Fomento, Reconstrucción y Energía 
  (Ministry of Economic Affairs, De velopment, Reconstruction and Energy) 
Subsecretaría de Economía 
  (Vice-Ministry of Economic Affairs) 
Subsecretaría de Pesca 
  (Vice-Ministry of Fishing) Secretaría Ejecutiva Comisión Nacional de Energía   (Executive Secretariat of the National Energy Commission) Comité de Inversiones Extranjeras 
  (Foreign Investments Committee) 
Servicio Nacional del Consumidor (SERNAC)   (National Consumers Bureau) Fiscalía Nacional Económica   (National Competitiveness Enforcement Department) 
Instituto Nacional de Estadísticas (INE)  WT/REG169/1 
 Page 103 
 
 
  (National Statistics Institute) Servicio Nacional de Pesca (SERNAPESCA)   (National Fisheries Bureau) Servicio Nacional de Turismo (SERNATUR)   (National Tourism Bureau) 
Superintendencia de El ectricidad y Combustible 
  (Superintendency for Electricity and Fuel) Centro de Información de Recursos Naturales (CIREN)   (Center for Information on Natural Resources) Corporación de Investigaciones Tecnológicas (INTEC) 
  (Corporation on Technological Research) 
Instituto de Fomento Pesquero (IFOP)   (Fisheries Development Institute) Instituto Forestal   (Forestry Institute) 
Instituto Nacional de Normalización (INN) 
  (National Standards Institute) Servicio de Cooperación Técnica (SERCOTEC)   (Technical Cooperation Bureau) Fondo Nacional de Desarrollo Tecnológico y Productivo   (National Technology and Production Development Fund) 
Corporación de Fomento de la Producción (CORFO) 
  (Chilean Economic Development Agency)  
Ministerio de Minería 
  (Ministry of Mining) 
Subsecretaría de Minería 
  (Vice-Ministry of Mining) Comisión Chilena de Energía Nuclear (CCHEN)   (Chilean Nuclear Energy Commission) Comisión Chilena del Cobre (COCHILCO)   (Chilean Copper Commission) 
Comisión Nacional de Energía 
  (National Energy Commission) Servicio Nacional de Geología y Minería (SERNAGEOMIN)   (National Geology and Mining Bureau)  Ministerio de Planificación y Cooperación   (Ministry of Planning and Cooperation) 
Subsecretaría de Planificación y Cooperación 
  (Vice-Ministry of Planning and Cooperation) Corporación Nacional Desarrollo Indígena (CONADI)   (National Corporation for the Development of Indigenous Peoples) 
Fondo de Solidaridad e Inversión Social (FOSIS) 
  (Social Solidarity and Investment Fund) Fondo Nacional de la Discapacidad (FONADIS)   (National Fund for Disabilities) Instituto Nacional de la Juventud (INJUV) 
  (National Institute for Young People) 
Agencia de Cooperación Internacional (AGCI)   (International Cooperation Agency)  WT/REG169/1 
Page 104  
 
Ministerio de Educación 
  (Ministry of Education) 
Subsecretaría de Educación 
  (Vice-Ministry of Education) Comisión Nacional de Investigación Científica y Tecnológica (CONICYT) 
  (National Commission for Scientific an Technological Research) 
Dirección de Bibliotecas, Archivos Museos (DIBAM)   (Directorate for Libraries, Archives and Museums) Junta Nacional de Auxilio Escolar y Becas (JUNAEB)   (National Educational Assistance and Scholarships Board) 
Junta Nacional de Jardines Infantiles (JUNJI) 
  (National Board for Nursery Schools) Consejo Nacional del Libro y la Lectura   (National Council for Books and Reading) Consejo de Calificación Cinematográfica 
  (Cinema Films Assessment Council) 
Fondo de Desarrollo de las Artes y la Cultura (FONDART)   (Fund for the Development of Arts and Culture)  
Ministerio de Justicia 
  (Ministry of Justice) 
Subsecretaría de Justicia 
  (Vice-Ministry of Justice) Corporaciones de Asistencia Judicial   (Legal Aid Corporations) Servicio Registro Civil e Identificación 
  (Civil Registry and Identification Bureau) 
Fiscalía Nacional de Quiebras   (National Bankruptcy Bureau) Servicio Médico Legal   (National Forensic Service) Servicio Nacional de Menores (SENAME) 
  (National Bureau for Minors) 
Dirección Nacional de Gendarmería   (National Directorate of Prison Wardens)  
Ministerio de Trabajo y Previsión Social 
  (Ministry of Labor and Social Welfare) Subsecretaría del Trabajo 
  (Vice-Ministry of Labor) Subsecretaría de Previsión Social   (Vice-Ministry of Social Welfare) Dirección del Trabajo 
  (Directorate of Labor) 
Dirección General del Crédito Prendario   (General Directorate of Chattel-Secured Loans) Instituto de Normalizac ión Previsional (INP) 
  (National Pension Fund System) 
Servicio Nacional de Capacitación y Empleo (SENCE) 
  (National Training and Employment Bureau) Superintendencia de Administra doras de Fondos de Pensiones 
  (Superintendency of Private Pension Fund Administrating Agencies) Superintendencia de Seguridad Social 
  (Superintendency of Social Welfare)  WT/REG169/1 
 Page 105 
 
 
Fondo Nacional de Pensiones Asistenciales   (National Fund for Social Aid Pensions)  
Ministerio de Obras Públicas 
  (Ministry of Public Works) 
Subsecretaría de Obras Públicas 
  (Vice-Ministry of Public Works) Dirección General de Obras Públicas   (General Directorate of Public Works) Dirección de y Ejecución de Obras Públicas 
  (Administration and Implementation of Public Works) 
Dirección de Servicios de Concesiones   (Administration of Concession Services) Dirección de Aeropuertos   (Administration of Airports) 
Dirección de Arquitectura 
  (Administration de Architecture) Dirección Obras Portuarias   (Administration of Port Works) Dirección de Planeamiento   (Administration of Planning) 
Dirección Obras Hidráulicas 
  (Administration of Hydraulic Works) Dirección Vialidad   (Highway and Road Administration) Dirección Contabilidad y Finanzas 
  (Administration of Accounting and Finances) 
Instituto Nacional de Hidráulica   (National Hydraulics Institute) Superintendencia Servicios Sanitarios   (Superintendence of Sanitation Service)  Ministerio de Transporte y Telecomunicaciones   (Ministry of Transport and Telecommunications) 
Subsecretaría de Transportes 
  (Vice-Ministry of Transport) Subsecretaría de Telecomunicaciones 
  (Vice-Ministry of Telecommunications) 
Junta Aeronáutica Civil   (Civil Aviation Board) Centro Control y Certificación Vehicular (3CV)   (Center for Vehicle Control and Certification) Comisión Nacional de Seguridad de Tránsito (CONASET) 
  (National Commission for Traffic Security) 
Unidad Operativa Control de Tránsito (UOCT)   (Traffic Control Operative Unit)  
Ministerio de Salud 
  (Ministry of Health) Subsecretaría de Salud 
  (Vice-Ministry of Health) Central de Abastecimientos del Sistema Nacional Servicios de Salud (CENABAST)   (Central Procurement for the National Health Services) 
Fondo Nacional de Salud (FONASA) WT/REG169/1 
Page 106  
 
  (National Health-Care Fund) Instituto de Salud Pública (ISP)   (Public Health Institute) Superintendencia de ISAPRES   (Superintendency of Private Medical Insurance Companies) 
Servicio de Salud Arica 
  (Arica Public Health Care Service) Servicio de Salud Iquique   (Iquique Public Health Care Service) Servicio de Salud Antofagasta 
  (Antofagasta Public Health Care Service) 
Servicio de Salud Atacama   (Atacama Public Health Care Service) Servicio de Salud Coquimbo   (Coquimbo Public Health Care Service) 
Servicio de Salud Valparaíso-San Antonio 
  (Valparaíso-San Antonio P ublic Health Care Service) 
Servicio de Salud Viña del Mar-Quillota   (Viña del Mar-Quillota Pub lic Health Care Service) 
Servicio de Salud Aconcagua   (Aconcagua Public Health Care Service) 
Servicio de Salud Libertador  General Bernardo O’Higgins 
  (Libertador General Bernardo O’Higgi ns Public Health Care Service) 
Servicio de Salud Maule   (Maule Public Health Care Service) Servicio de Salud Ñuble 
  (Ñuble Public Health Care Service) 
Servicio de Salud Concepción   (Concepción Public Health Care Service) Servicio de Salud Talcahuano   (Talcahuano Public Health Care Service) Servicio de Salud Bío-Bío 
  (Bío-Bío Public Health Care Service) 
Servicio de Salud Arauco   (Arauco Public Health Care Service) Servicio de Salud Araucanía Norte   (Araucanía Norte Public Health Care Service) 
Servicio de Salud Araucanía Sur 
  (Araucanía Sur Public Health Care Service) Servicio de Salud Valdivia   (Valdivia Public Health Care Service) Servicio de Salud Osorno   (Osorno Public Health Care Service) 
Servicio de Salud Llanquihue-Chiloé-Palena 
  (Llanquihue-Chiloé-Palena Public Health Care Service) Servicio de Salud Aysén   (Aysén Public Health Care Service) Servicio de Salud Magallanes 
  (Magallanes Public Health Care Service) 
Servicio de Salud Metropolitano Oriente   (East Metropolitan Area Public Health Care Service) Servicio de Salud Metropolitano Central 
  (Central Metropolitan Area Public Health Care Service) 
Servicio de Salud Metropolitano Sur  WT/REG169/1 
 Page 107 
 
 
  (South Metropolitan Area Public Health Care Service) Servicio de Salud Metropolitano Norte   (North Metropolitan Area Public Health Care Service) Servicio de Salud Metropolitano Occidente   (West Metropolitan Area Public Health Care Service) 
Servicio de Salud Me tropolitano Sur-Oriente 
  (South-East Metropolitan Public Health Care Service) Servicio de Salud Me tropolitano del Ambiente 
  (Metropolitan Environmental Public Health Care Service)  Ministerio de la Vivienda y Urbanismo   (Ministry of Housing and Urban Planning) 
Subsecretaría de Vivienda 
  (Vice-Ministry of Housing) Parque Metropolitano de Santiago 
  (Santiago Metropolitan Park) 
Servicios Regionales de Vivienda y Urbanismo   (Regional Housing and Urban Planning Services)  
Ministerio de Bienes Nacionales 
  (Ministry of National Assets ) 
Subsecretaría de Bienes Nacionales 
  (Vice-Ministry of National Assets)  
Ministerio de Agricultura 
  (Ministry of Agriculture) 
Subsecretaría de Agricultura 
  (Vice-Ministry of Agriculture) Comisión Nacional de Riego (CNR)   (National Irrigation Commission) Corporación Nacional Forestal (CONAF)   (National Forestry Corporation) 
Instituto de Desarrollo Agropecuario (INDAP) 
  (Agriculture and Livest ock Development Institute) 
Oficina de Estudios y Políticas Agrícolas (ODEPA)   (Bureau of Agrarian Studies and Agricultural Policy) Servicio Agrícola y Ganadero (SAG) 
  (Agriculture and Livestock Service) 
Instituto Investigacion es Agropecuarias (INIA) 
  (Agriculture and Livestock Research Institute)  
Ministerio Servicio Nacional de la Mujer 
  (Ministry of the National Bureau for Women) 
Subsecretaría Nacional de la Mujer 
  (Vice-Ministry of the National Bureau for Women) 
 
Gobiernos Regionales   (Regional Governments) 
Intendencia I Región 
  (Intendancy Region I) Gobernación de Arica   (Governor’s Office – Arica) Gobernación de Parinacota 
  (Governor’s Office - Parinacota) WT/REG169/1 
Page 108  
 
Gobernación de Iquique   (Governor’s Office - Iquique) Intendencia II Región   (Intendancy Region II) Gobernación de Antofagasta 
  (Governor’s Office - Antofagasta) 
Gobernación de El Loa   (Governor’s Office - El Loa) Gobernación de Tocopilla   (Governor’s Office - Tocopilla) 
Intendencia III Región 
  (Intendancy Region III) Gobernación de Chañaral   (Governor’s Office - Chañaral) Gobernación de Copiapó 
  (Governor’s Office - Copiapó) 
Intendencia IV Región   (Intendancy Region IV) Gobernación de Huasco   (Governor’s Office - Huasco) Gobernación de El Elqui 
  (Governor’s Office - El Elqui) 
Gobernación de Limarí   (Governor’s Office - Limarí) Gobernación de Choapa   (Governor’s Office - Choapa) 
Intendencia V Región 
  (Intendancy Region V) Gobernación de Petorca   (Governor’s Office - Petorca) Gobernación de Valparaíso   (Governor’s Office - Valparaiso) 
Gobernación de San Felipe de Aconcagua 
  (Governor’s Office - San Felipe de Aconcagua) Gobernación de Los Andes   (Governor’s Office - Los Andes) Gobernación de Quillota 
  (Governor’s Office - Quillota) 
Gobernación de San Antonio   (Governor’s Office - San Antonio) Gobernación de Isla de Pascua   (Governor’s Office - Isla de Pascua) Intendencia VI Región 
  (Intendancy Region VI) 
Gobernación de Cachapoal   (Governor’s Office - Cachapoal) Gobernación de Colchagua   (Governor’s Office - Colchagua) 
Gobernación de Cardenal Caro 
  (Governor’s Office - Cardenal Caro) Intendencia VII Región   (Intendancy Region VII) Gobernación de Curicó 
  (Governor’s Office - Curicó)  WT/REG169/1 
 Page 109 
 
 
Gobernación de Talca   (Governor’s Office - Talca) Gobernación de Linares   (Governor’s Office - Linares) Gobernación de Cauquenes 
  (Governor’s Office - Cauquenes) 
Intendencia VIII Región   (Intendancy Region VIII) Gobernación de Ñuble   (Governor’s Office - Ñuble) 
Gobernación de Bío-Bío 
  (Governor’s Office - Bío-Bío) Gobernación de Concepción   (Governor’s Office - Concepción) Gobernación de Arauco 
  (Governor’s Office - Arauco) 
Intendencia IX Región   (Intendancy Region IX) Gobernación de Malleco   (Governor’s Office - Malleco) Gobernación de Cautín 
  (Governor’s Office - Cautín) 
Intendencia X Región   (Intendancy Region X) Gobernación de Valdivia   (Governor’s Office - Valdivia) 
Gobernación de Osorno 
  (Governor’s Office - Osorno) Gobernación de Llanquihue   (Governor’s Office - Llanquihue) Gobernación de Chiloé   (Governor’s Office - Chiloé) 
Gobernación de Palena 
  (Governor’s Office - Palena) Intendencia XI Región   (Intendancy Region XI) Gobernación de Coihaique 
  (Governor’s Office - Coihaique) 
Gobernación de Aysén   (Governor’s Office - Aysén) Gobernación de General Carrera   (Governor’s Office - General Carrera) Intendencia XII Región 
  (Intendancy Region XII) 
Gobernación de Capitán Prat   (Governor’s Office - Capitán Prat) Gobernación de Ultima Esperanza   (Governor’s Office - Ultima Esperanza) 
Gobernación de Magallanes 
  (Governor’s Office - Magallanes) Gobernación de Tierra del Fuego   (Governor’s Office - Tierra del Fuego) Gobernación de Antártica Chilena 
  (Governor’s Office - Antártica Chilena) WT/REG169/1 
Page 110  
 
Intendencia Región Metropolitana   (Intendancy Metropolitan Region) Gobernación de Chacabuco   (Governor’s Office - Chacabuco) Gobernación de Cordillera 
  (Governor’s Office - Cordillera) 
Gobernación de Maipo   (Governor’s Office - Maipo) Gobernación de Talagante   (Governor’s Office - Talagante) 
Gobernación de Melipilla 
  (Governor’s Office - Melipilla) Gobernación de Santiago   (Governor’s Office - Santiago)  3. Korea’s List of Entities 
Board of Audit and Inspection 
Office of the Prime Minister Ministry of Planning and Budget Ministry of Legislation Ministry of Patriots and Veterans Affairs 
Ministry of Finance and Economy 
Ministry of Education and Human Resources Development Ministry of Unification Ministry of Foreign Affairs and Trade Ministry of Justice 
Ministry of National Defense 
Ministry of Government Administration and Home Affairs Ministry of Science and Technology Ministry of Culture and Tourism Ministry of Agriculture and Forestry Ministry of Commerce, Industry and Energy 
Ministry of Information and Communications 
Ministry of Health and Welfare Ministry of Environment Ministry of Labor Ministry of Gender Equality 
Ministry of Construction and Transportation 
Ministry of Maritime Affairs and Fisheries Government Information Agency Fair Trade Commission Financial Supervisory Commission Civil Service Commission 
National Tax Service 
Korea Customs Service Public Procurement Service (limited to purchases fo r entities in this list only.  Regarding procurement 
for entities in Appendix 2 and Appendix 3, the cove rages and thresholds for such entities thereunder 
shall be applied.) 
National Statistical Office 
Supreme Public Prosecutors' Office Military Manpower Administration National Police Agency (except purchases for the purpose of maintaining public order) 
Korea Meteorological Administration  WT/REG169/1 
 Page 111 
 
 
Cultural Properties Administration Rural Development Administration Korea Forest Service Small and Medium Business Administration Korean Intellectual Property Office 
Food and Drug Administration 
Korea National Railroad Administration National Maritime Police Agency (except purchases for the purpose of maintaining public order) 
 
4. Notes to Appendix 1 
For Chile: 
 
 The above central government entities include th eir subordinate linear organizations, regional 
and sub-regional subdivisions, provided that they do not have an industrial or commercial character. 
 For Korea: 
 
1. The above central government entities include thei r subordinate linear organizations, regional 
and sub-regional subdivisions, provided that they do not have an industrial or commercial character. 
2. This Appendix does not apply to the single tendering procurement including set-asides for 
small and medium-sized businesses according to the Ac t Relating to Contracts to which the State is a 
Party and its Presidential Decree. After the Administrator of the Small and Medium Business 
Administration designates specific goods to be purchased from small and medium-sized business, Korea will notify Chile of the addition to  the existing list of goods annually. 
3. The Defense Logistics Agency shall be considered as part of the Ministry of National Defense 
(MND). Subject to the decision of the Korean govern ment under the provisions of the General Notes, 
for purchases by the MND, this Agreement will appl y to the following FSC categories only, and for 
services and construction services listed in Appendices 5 and 6, it will apply only to those areas which 
are not related to national security and defense. 
FSC Description 
 
2510  Vehicular cab, body and frame structural components 
2520  Vehicular power transmission components 
2540  Vehicular furniture and accessories 2590  Miscellaneous vehicular components 2610  Tires and tubes, pneumatic, nonaircraft 2910  Engine fuel system components, nonaircraft 
2920  Engine electrical system components, nonaircraft 
2930  Engine cooling system components, nonaircraft 2940  Engine air and oil filters, strainers and cleaners, nonaircraft 2990  Miscellaneous engine accessories, nonaircraft 3020  Gears, pulleys, sprock ets and transmission chain 
3416  Lathes 
3417  Milling machines 
3510  Laundry and dry cleaning equipment 4110  Refrigeration equipment 4230  Decontaminating a nd impregnating equipment 
4520  Space heating equipment and domestic water heaters 
4940  Miscellaneous maintenance and repair shop specialized equipment 
5120  Hand tools, nonedged, nonpowered WT/REG169/1 
Page 112  
 
5410  Prefabricated and portable buildings 5530  Plywood and veneer 5660  Fencing, fences and gates 5945  Relays and solenoids 5965  Headsets, handsets, microphones and speakers 
5985  Antennae, waveguide  and related equipment 
5995  Cable, cord and wire assemblies: communication equipment 6505  Drugs and biologicals 6220  Electric vehicular lights and fixtures 6840  Pest control agents disinfectants 
6850  Miscellaneous chemical, specialties 
7310  Food cooking, baking and serving equipment 7320  Kitchen equipment and appliances 7330  Kitchen hand tools and utensils 7350  Tableware 
7360  Sets, kits, outfits, and m odules food preparation and serving 
7530  Stationery and record forms 7920  Brooms, brushes, mops and sponges 7930  Cleaning and polishing compounds and preparations 8110  Drums and cans 9150  Oils and greases: cutting,  lubricating and hydraulic 
9310  Paper and paperboard 
  
APPENDIX 2 
 
Entities At Subcentral Level
 
 
1. Thresholds 
Supplies 
Specified in Appendix 4 
Thresholds SDR 200,000 
 
Services 
Specified in Appendix 5 
Thresholds SDR 200,000  Construction Services 
Specified in Appendix 6 
Thresholds SDR 15,000,000  
2. Chile has no commitments regarding this Appendix. 
3. Korea’s List of Entities 
Seoul Metropolitan Government 
City of Busan City of Daegu City of Incheon City of Gwangju 
City of Daejon 
Kyonggi-do Gangwon-do  WT/REG169/1 
 Page 113 
 
 
Chungcheongbuk-do Chungcheongnam-do Gyeongsangbuk-do Gyeongsangnam-do Jeollabuk-do 
Jeollanam-do 
Jeju-do  
4. Notes to Appendix 2 
For Korea: 
 
1. The above sub-central administrative government entities include their subordinate 
organizations under direct control and offices as pres cribed in the Local Autonomy Law of the Korea. 
2. This Appendix does not apply to the single tendering procurement including set-asides for 
small and medium-sized businesses according to the Local Finance Law and its Presidential Decree. 
After the Administrator of the Small and Medium  Business Administration designates specific goods 
to be purchased from small and medium-sized business,  Korea will notify Chile of the addition to the 
existing list of goods annually. 
 
APPENDIX 3 
 
All Other Entities
 
 
1. Thresholds 
Supplies 
Specified in Appendix 4 Thresholds SDR 450,000 
 
Construction Services 
Specified in Appendix 6 
Thresholds SDR 15,000,000  2. Chile’s List Of Entities 
Empresa Portuaria Arica 
Empresa Portuaria Iquique Empresa Portuaria Antofagasta Empresa Portuaria Coquimbo 
Empresa Portuaria Valparaíso 
Empresa Portuaria San Antonio Empresa Portuaria San Vicente-Talcahuano Empresa Portuaria Puerto Montt Empresa Portuaria Chacabuco Empresa Portuaria Austral 
Aeropuertos de Propiedad del Estado, Dependien tes de la Dirección de Aeronáutica Civil 
 
3. Korea’s List of Entities 
Korea Development Bank 
Industrial Bank of Korea WT/REG169/1 
Page 114  
 
Kookmin Bank Korea Minting and Security Printing Corporation Korea Electric Power Corporation (except purchases of  products in the categories of HS Nos. 8504, 
8535, 8537 and 8544) Korea Coal Corporation 
Korea Resources Corporation 
Korea National Oil Corporation Korea Trade-Investment Promotion Agency Korea Highway Corporation Korea National Housing Corporation 
Korea Water Resources Corporation 
Korea Land Corporation Korea Agricultural and Rural Infrastructure Corporation Agricultural and Fishery Marketing Corporation Korea National Tourism Organization 
Korea Labor Welfare Corporation 
Korea Gas Corporation  
4. Notes to Appendix 3 
For Chile: 
  This Appendix covers all other public undertakings, over which the public authorities may 
exercise directly or indirectly a dominant influen ce, which have as one of their activities any of those 
referred to below or any combination thereof:  
(a) the provision of airport or other terminal facilities to carriers by air, and 
(b) the provision of maritime or inland port or other terminal facilities to carriers by sea 
or inland waterway, 
provided that they do not have an industrial or commercial character. 
 
For Korea: 
 1. This Appendix dos not apply to the single tendering procurement including set-asides for 
small and medium-sized businesses according to the Government Invested Enterprise Management Law and Accounting Regulations on G overnment Invested Enterprise. After the Administrator of the 
Small and Medium Business Administration designates specific goods to be purchased from small and medium-sized business, Korea will notify Chile of th e addition to the existing list of goods annually. 
2. This Appendix covers all ot her public undertakings, over wh ich the public authorities may 
exercise, directly or indirectly, a dominant influence,  which have as one of th eir activities any of those 
referred to below or any combination thereof: 
(a) the provision of airport or other terminal facilities to carriers by air, and 
(b) the provision of maritime or inland port or other terminal facilities to carriers by sea 
or inland waterway,  
provided that they do not have an industrial or commercial character. 
   WT/REG169/1 
 Page 115 
 
 
APPENDIX 4 
 
Supplies  
  Subject to the General Notes, the governments  of Korea and Chile shall cover all supplies 
unless otherwise specified in Appendices 1 to 3. 
  Neither Party has any Notes to this Appendix.   
APPENDIX 5 
 
Services
 
  For the purpose of this Chapter and without prejudice to Article 15.2, no services of the WTO 
Universal List of Services (WTO/MTN.GNS/W/120) shall be excluded. 
 
 
APPENDIX 6 
 
Construction Services
 
 
 For the purpose of this Chapter and without pr ejudice to Article 15.2, no construction services 
under the division of the CPC concerning construction work are excluded. 
  
APPENDIX 7 
 
General Notes
 
 
1. Nothing in this Agreement shall be construed to prevent a Party from taking any action or not 
disclosing any information which it considers nece ssary for the protection of its essential security 
interests relating to the procurement of arms, am munition or war materials, or to procurement 
indispensable for national security or defence purposes. 
2. Subject to the requirement that such measur es under paragraph 1 are not applied in a manner 
which would constitute a means of arbitrary or unju stifiable discrimination between the Parties, or a 
disguised restriction on international trade, nothing in this Agreement shall be construed to prevent a 
Party from imposing or enforcing measures, which is  necessary to protect public morals, order or 
safety, human, animal or plant life or health or in tellectual property, or whic h relates to the products 
or services of handicapped persons, of philant hropic institutions or of prison labour. 
3. Korea understands that selective tendering pr ocedures are a category of open tendering 
procedures and that they are procedures whereb y only the suppliers satisfying qualifications 
requirements established by the entities, listed in Ap pendices 1 to 3, are invited to submit a tender. 
 WT/REG169/1 
Page 116  
 
ANNEX 15.2 
 
Government Procurement Implementation
 
 
APPENDIX 1 
(Referred to in Article 15.8.3) 
 
Means Of Publication  
 
For Chile: 
 
Diario Oficial de la  República de Chile 
http://www.chilecompra.cl  
 
For Korea: 
 
Official Gazette of Korea 
http://www.g2b.go.kr/  
  
APPENDIX 2 
 
Value Of Thresholds
 
 1. In calculating the value of a contract, entities shall include any procurement for which the 
value of the procurement is estimated to be belo w the relevant values specified in the Parties’ 
respective Appendices to Annex 15.1 of this Chapter.  Entities shall include in such an estimate the 
maximum total estimated value of the procuremen t and any resulting contracts over the duration of 
such contracts, taking into account all options, premiums, fees, commissions, interest and other 
revenue streams or forms of remunerati on, provided for in such contracts. 
2. Each Party shall publish the value of the th resholds under this Chapter expressed in the 
corresponding national currency. 
3. For Korea, the calculation of these values shall be  based on the average of the daily values of 
the Special Drawing Rights (SDR) to Korean w on exchange rate over the 24 months preceding 
October 1 or November 1 of the year prior to the thresholds in national currency becomes effective, 
which will be from January 1. 
4. For Chile, the calculation of these values shall be  based on the average of the daily values of 
the SDR to Chilean peso exchange rate over the 24 months terminating on the last day of August 
preceding the revision with effect from January 1. 
5. The value of the thresholds thus revised sh all, where necessary, be rounded down to the 
nearest ten thousand Chilean peso and ten million Korean won. 
  WT/REG169/1 
 Page 117 
 
 
PART V : INTELLECTUAL PROPERTY RIGHTS 
 
CHAPTER 16 : INTELLECTUAL PROPERTY RIGHTS 
 
Article 16.1 
 
Obligations  
 1. Each Party shall provide, in its territory, to the nationals of the other Party adequate and 
effective protection and enforcement of intellectua l property rights, while ensuring that measures to 
enforce intellectual property rights do not themselv es become unnecessary barriers to legitimate trade. 
2. To provide adequate and effective protection a nd enforcement of intellectual property rights, 
each Party shall faithfully implement the internatio nal conventions it has acceded to, including the 
TRIPS Agreement. 
Article 16.2 
 
More Extensive Protection
 
  A Party may implement in its domestic law more  extensive protection of intellectual property 
rights than is required under this Agreement, provide d that such protection is not inconsistent with 
this Agreement and the TRIPS Agreement. 
 
Article 16.3 
 
Protection Of Trademarks
 
 
1. Article 6 bis of the Paris Convention shall apply, mutatis mutandis , to services. In 
determining whether a trademark is well known, the Parties shall take account of the knowledge of the 
trademark in the relevant sector of the public, incl uding knowledge in the Pa rty concerned, obtained 
as a result of the promotion of the trademark. 
2. If the use of a trademark is required by the legisl ation of a Party to maintain registration, the 
registration may be cancelled only after an uninterrupted period of at least three years of nonuse, 
unless valid reasons based on the existence of obstacles to such use are shown by the trademark 
owner. 
3. When subject to the control of its owner, u se of a trademark by another person shall be 
recognized as use of the trademark for the purpose of maintaining the registration.  
Article 16.4 
 
Protection Of Geographical Indications  
 1. For the purpose of this Agreement, geographical  indications are indications, which identify a 
good as originating in the territory of a Party, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical 
origin. 
2. With the recognition of the importance of th e protection of geographical indications, both 
Parties shall protect, in compliance with their respective domestic legislation, the geographical 
indications of the other Party registered and/or protect ed by that other Party, that fall within the scope 
of protection stated in Articles 22, 23 and 24 of the TRIPS Agreement. Further to the acceptance of WT/REG169/1 
Page 118  
 
this obligation, both Parties shall not permit th e importation, manufacture and sale of products, in 
compliance with their respective domestic legislation,  which use such geographical indications of the 
other Party, unless such products have been produced in that other Party. 
3. Chile shall protect the geographical indications listed in Annex 16.4.3 for their exclusive use 
in products originating in Korea. Chile shall prohibit the importation, manufacture and sale of 
products with such geographical indications, unless they  have been produced in Korea, in accordance 
with the applicable Korean law. 
4. Korea shall protect the geographical indications listed in Annex 16.4.4 for their exclusive use 
in products originating in Chile. Korea shall prohibit the importation, manufacture and sale of 
products with such geographical indications, unless th ey have been produced in  Chile, in accordance 
with the applicable Chilean law. This shall in no way prejudice the rights that Korea may recognize, 
in addition to Chile, exclusively to Peru with respect to “Pisco”.  
5. Within two years from the entry into force of this Agreement, both Parties shall enter into 
consultations to protect additional geographical in dications. As a result of these consultations, both 
Parties shall protect and/or recognize, under the te rms stated in this Agreement, the geographical 
indications listed in Annex 16.4. 5 and any additional geographical  indications submitted by the 
Parties that fall within the scope of protection of geographical indications set out in Articles 22, 23 
and 24 of the TRIPS Agreement. 
Article 16.5 
 
Enforcement
 
 
 The Parties shall provide in their respective la ws for the enforcement of intellectual property 
rights consistent with the TRIPS Agreement,  in particular, Articles 41 to 61 thereof. 
 
Article 16.6 
 
Consultative Mechanism  
  Any consultations between the Parties with resp ect to the implementation or interpretation of 
this Chapter shall be carried out under the dispute settlement procedures referred to in Chapter 19. 
 
 
ANNEX 16.4.3 
 
Geographical Indications Of Korea
 
 
 - Korean Ginseng (for Ginseng) 
 - Korean Kimchi (for Kimchi)  - Boseong (for Tea)   
ANNEX 16.4.4 
 
Geographical Indications Of Chile
 
  - Pisco (for wine and spirits)  - Pajarete (for wine and spirits) 
 - Vino Asoleado (for wine) 
  WT/REG169/1 
 Page 119 
 
 
ANNEX 16.4.5 
 
Geographical Indications Of Wines Originating In Chile  
  Wines of the following regions, sub regions and zones: 
 
Viticole Region of Atacama 
 
 - Subregion: Valle de Copiapó  - Subregion: Valle del Huasco 
 
Viticole Region of Coquimbo 
 
 - Subregion: Valle del Elqui  - Subregion: Valle del Limarí 
 - Subregion: Valle del Choapa 
 
Viticole Region of Aconcagua 
 
 - Subregion: Valle de Aconcagua  - Subregion: Valle de Casablanca 
 
Viticole Region of Valle Central 
 
 - Subregion: Valle del Maipo  - Subregion: Valle del Rapel 
   ּZone: Valle de Cachapoal 
   ּZone: Valle de Colchagua 
 - Subregion: Valle de Curicó    ּZone: Valle del Teno 
   ּZone: Valle del Lontué 
 - Subregion: Valle del Maule 
   ּZone: Valle del Claro 
   ּZone: Valle del Loncomilla 
   ּZone: Valle del Tutuvén 
 
Viticole Region of the South/Sur 
 
 - Subregion: Valle del Itata  - Subregion: Valle del Bío-Bío   WT/REG169/1 
Page 120  
 
PART VI : ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 
 
CHAPTER 17 : TRANSPARENCY 
 
Article 17.1 
 
Definitions
 
  For purposes of this Chapter:  
 administrative ruling of general application  means an administrative ruling or 
interpretation that applies to all persons and fact situ ations that fall generally within its ambit and that 
establishes a norm of conduct but does not include:  
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that 
applies to a particular person, good or serv ice of the other Party in a specific case; or 
(b) a ruling that adjudicates with respect to a particular act or practice. 
Article 17.2 
 
Contact Points
 
 
1. Each Party shall designate a contact point to facilitate communications between the Parties on 
any matter covered by this Agreement. 
2. Upon request of a Party, the contact point of the other Party shall indicate the office or official 
responsible for the matter and assist, as necessary,  in facilitating communication with the requesting 
Party. 
Article 17.3 
 
Publication  
 1. Each Party shall ensure that its laws, regula tions, procedures and administrative rulings of 
general application relating to an y matter covered by this Agreement are promptly published or 
otherwise made publicly available. 
2. To the extent possible, each Party shall: 
(a) publish in advance any such measure that it proposes to adopt; and  
(b) provide interested persons and the other Party a reasonable opportunity to comment 
on such proposed measures. 
Article 17.4 
 
Notification And Provision Of Information
 
 1. To the maximum extent possible, each Party sha ll notify the other Party of any proposed or 
actual measure that the Party considers might materi ally affect the operation of this Agreement or 
otherwise substantially affect the other Party's interests under this Agreement.   WT/REG169/1 
 Page 121 
 
 
2. Upon request of the other Party, a Party sha ll promptly provide information and respond to 
questions pertaining to any actual or proposed meas ure, whether or not the other Party has been 
previously notified of that measure. 
3. Any notification or information provided under this Article shall be without prejudice as to 
whether the measure is consis tent with this Agreement. 
4. The information referred to under this Article sha ll be considered to have been provided when 
it has been made available by appropriate notificati on to the WTO or when it has been made available 
on the official, public and fee-free accessi ble website of the Party concerned. 
Article 17.5 
 
Exchange Of Information On State Aid  
 
 Each Party may request information on individua l cases of state aid that it believes to affect 
trade between the Parties. The requested Party shall make its best efforts to provide non-confidential 
information. 
 
Article 17.6 
 
Administrative Proceedings  
  With a view to administering in a consistent , impartial and reasonable manner all measures of 
general application affecting matters covered by this  Agreement, each Party shall ensure that in its 
administrative proceedings applying measures referred  to in Article 17.3 to particular persons, goods 
or services of the other Party in specific cases:  
(a) wherever possible, persons of the other Party that are directly affected by a 
proceeding are provided with a reasonable notice, in accordance with domestic 
procedures, when a proceeding is initiated, including a description of the nature of the 
proceeding, a statement of the legal author ity under which the pr oceeding is initiated 
and a general description of any issues in controversy; 
(b) such persons are afforded with a reas onable opportunity to present facts and 
arguments in support of their positions prior to any final administrative action, when 
time, the nature of the proceeding and the public interest permit; and 
(c) its procedures are in accordance with its domestic law. 
Article 17.7 
 
Review And Appeal
 
 
1. Each Party shall establish or maintain judicial , or administrative tribunals or procedures for 
the purpose of the prompt review and, where warra nted, correction of final administrative actions 
regarding matters covered by  this Agreement. Such tribunals sha ll be impartial and independent of the 
office or authority entrusted with administrative enforcement and shall no t have any substantial 
interest in the outcome of the matter. 
2. Each Party shall ensure that, in any such tribuna ls or procedures, the parties to the proceeding 
are provided with the right to: 
(a) a reasonable opportunity to support or  defend their respective positions; and WT/REG169/1 
Page 122  
 
(b) a decision based on the evidence and submissi ons of record and, where required by 
domestic law, the record compiled by the administrative authority. 
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law, 
that such decisions shall be implemented by, and shall govern the practice of, the offices or authorities 
with respect to the administrative action at issue. 
 
CHAPTER 18 : ADMINISTRATION OF THE AGREEMENT 
 
Article 18.1 
 
The Free Trade Commission
 
 1. The Parties hereby establish the Free Trade Commi ssion, comprising officials referred to in 
Annex 18.1.1 or their designees. 
2. The Parties, through the Commission, shall: 
(a) supervise the implementation and appropriate application of the provisions of this 
Agreement; 
(b) evaluate the results obtained in the cour se of the application of this Agreement; 
(c) supervise the work of the committees a nd working groups established under this 
Agreement, referred to in Annex 18.1.2(c); 
(d) ensure that, with regard to public ente rprises and enterprises to which special or 
exclusive rights have been granted, in fulf illment of Article 14.8, following the date 
of entry into force of this Agreement, any measure distorting trade in goods or services between the Parties is neither enacted or maintained to an extent contrary to 
the Parties interests; and 
(e) consider any other matter that may affect th e operation of this Agreement, or that is 
entrusted to the Commission by the Parties. 
3. In the fulfillment of its functions, the Commission may: 
(a) establish and delegate responsibilities to ad hoc  or standing committees, working 
groups or expert groups and assign them with tasks on specific matters;  
(b) seek the advice of non-governmental persons or groups; 
(c) modify, in accordance with Annex 18.1.3(c): 
(i) the established rules of origin in Annex 4; 
(ii) the Schedules established in Annex 3.4, in order to accelerate the tariff 
elimination process; 
(iii) the Uniform Regulations; and 
(iv) the Annexes 15.1 and 15.2 (Government procurement); and  WT/REG169/1 
 Page 123 
 
 
(d) take such other action in the exercise of its functions, as the Parties may agree. 
4. The Commission shall establish its rules and procedures. All decisions of the Commission 
shall be adopted by mutual agreement between the Parties. 
5. The Commission shall convene at least once a y ear in regular session. Regular sessions of the 
Commission shall be chaired alternately by each Party.  
Article 18.2 
 
The Secretariat  
 1. Each Party hereby designates the competent nati onal organ referred to in Annex 18.2 to serve 
as its Secretariat for purposes of this Agreement. 
2. For purposes of this Agreement, all communication or notification to or by a Party shall be 
made through its Secretariat. 
 
ANNEX 18.1.1 
 
Officials Of The Free Trade Commission
 
  For purposes of Article 18.1, officials of the Commission are:  
(a) in the case of Chile, the Minister of Foreign Affairs, or her/his designees; and 
(b) in the case of Korea, the Minister for Trade, or her/his designees. 
 
ANNEX 18.1.2(c) 
 
Committees And Working Groups
 
 
1. Committees: 
(a) Committee on Trade in Goods; 
(b) Committee on Sanitary and Phytosanitary Measures; 
(i) Sub-Committee on Animal Health; 
(ii) Sub-Committee on Plant Protection; and 
(iii) Sub-Committee on Food Safety; 
(c) Committee on Standards-Related Measures; 
(d) Investment and Cross-Border Trade in Services Committee; and 
(e) Committee on Telecommunications Standards. 
2. Working Groups: WT/REG169/1 
Page 124  
 
(a) Temporary Entry Working Group; and 
(b) Government Procurement Working Group. 
 
ANNEX 18.1.3(c) 
 
Implementation Of Decisions Adopted By The Commission
 
  The Parties shall implement decisions of th e Commission, referred to in Article 18.1.3(c), 
according to their respective domestic legislation and the following procedures:  
(a) in the case of Chile, by means of executive ag reements, in conform ity with Article 50 
Nº1, second paragraph of the Political C onstitution of the Republic of Chile; and 
(b) in the case of Korea, in conformity with Article 60.1 of the Constitution of the 
Republic of Korea. 
 
ANNEX 18.2 
 
The Secretariat
 
 
 For purposes of Article 18.2, the competent national organs of the Parties are:  
(a) for Chile, the General Directorate of Intern ational Economic Affairs of the Ministry 
of Foreign Affairs, or its successor; and 
(b) for Korea, the Multilateral Trade Bureau of  the Ministry of Foreign Affairs and 
Trade, or its successor. 
 
CHAPTER 19 : DISPUTE SETTLEMENT 
 
Section A - Dispute Settlement
 
 
Article 19.1 
 
Cooperation  
  The Parties shall at all times endeavour to ag ree on the interpretation and application of this 
Agreement, and shall make every attempt throug h cooperation and consulta tions to arrive at a 
mutually satisfactory resolution of any ma tter that might affect its operation.  
 
Article 19.2 
 
Scope Of Application
 
  Except as otherwise provided in this Agreement,  the provisions of this Chapter shall apply: 
 
(a) with respect to the avoidance and settlement  of disputes between the Parties regarding 
the interpretation or application of this Agreement; or  WT/REG169/1 
 Page 125 
 
 
(b) wherever a Party considers that an existing or proposed measure of the other Party is 
or would be inconsistent with the ob ligations of this Agreement or causes 
nullification or impairment in the sense of Annex 19.2. 
Article 19.3 
 
Choice Of Forum  
 1. Disputes regarding any matter arising under bot h this Agreement and the WTO Agreement, 
any agreement negotiated thereunder, or any su ccessor agreement, may be settled in the forum 
selected by the complaining Party. 
2. Once dispute settlement procedures have b een initiated under Article 19.6 or dispute 
settlement proceedings have been initiated under th e WTO Agreement, the forum selected shall be 
used to the exclusion of the other. 
3. For purposes of this Article, dispute settlement proceedings under the WTO Agreement are 
deemed to be initiated upon a request for a panel by a Party.  
Article 19.4 
 
Consultations
 
 1. A Party may request in writing consultations with the other Party regarding any existing or 
proposed measure or any other matter that it consid ers might affect the operation and application of 
this Agreement. 
2. The Party that requests consultations according to  paragraph 1 shall indicate the provisions of 
the Agreement that it considers relevant and deliver the request to the other Party.  
3. Consultations on matters regard ing perishable agricultural goo ds shall commence within 15 
days of the date of delivery of the request. 
4. The Parties shall: 
(a) provide information to enable a full examination of how the existing or proposed 
measure or other matter might affect the ope ration and application of this Agreement; 
and 
(b) give confidential treatment to any in formation exchanged in the course of 
consultations. 
Article 19.5 
 
Good Offices, Conciliation And Mediation
 
 1. Good offices, conciliation and mediation are pro cedures undertaken voluntarily if the Parties 
so agree. 
2. Proceedings involving good offices, conciliation and mediation, and in particular positions 
taken by the Parties during these proceedings, shall be  confidential, and without prejudice to the rights 
of either Party in any further proceedings under these procedures. WT/REG169/1 
Page 126  
 
3. Good offices, conciliation or mediation may be reque sted at any time by any Party. They may 
begin at any time and be terminated at any tim e. Once procedures for good offices, conciliation or 
mediation are concluded without an agreement be tween the Parties, the complaining Party may 
request the establishment of a panel. 
Article 19.6 
 
Request For An Arbitral Panel
 
 1. A Party may request in writing the establishment of an arbitral panel if the matter has not 
been resolved pursuant to Article 19.4, within: 
(a) 45 days of delivery of a request for consultations; 
(b) 30 days of delivery of a request for consu ltations in matters regarding perishable 
agricultural goods; or 
(c) such other period as the Parties may agree. 
2. A Party may also request in writing the establishm ent of an arbitral panel where consultations 
have been held pursuant to Article 8.12. 
3. Upon delivery of the request, an arb itral panel shall be established. 
4. Unless otherwise agreed by the Parties, th e panel shall be established and perform its 
functions in accordance with the provisions of this Chapter. 
Article 19.7 
 
Roster
 
 1. The Parties shall establish, by mutual agreement,  no later than six months after the entry into 
force of this Agreement a roster of up to 15 individu als, one-third of whom shall not be nationals of 
either Party, who are willing and qualified to ser ve as panelists. The roster members shall be 
appointed for a term of three years, and will automa tically be reappointed for an additional three-year 
term, unless either Party objects. 
2. Roster members shall: 
(a) have expertise or experience in law, interna tional trade, other matters covered by this 
Agreement or the resolution of disputes ar ising under international trade agreements; 
(b) be chosen strictly on the basis of obj ectivity, reliability and sound judgment; 
(c) be independent of, not be aff iliated with or take instructi ons from, either Party; and 
(d) comply with the Code of Conduct set out in Annex 19.7. 
Article 19.8 
 
Qualifications Of Panelists
 
 
1. All panelists shall meet the qualifi cations set out in Article 19.7.2.  WT/REG169/1 
 Page 127 
 
 
2. Individuals may not serve as panelists for a dis pute in which they have participated pursuant 
to Article 19.5. 
Article 19.9 
 
Panel Selection  
 
1. The panel shall comprise three members. 
2. Each Party shall select one panelist within 15 days from the delivery of the request for the 
establishment of the panel. 
3. Within 15 days of the selection of the panelists  under paragraph 2, the Parties shall agree on 
the chair of the panel. If the Parties are unable to ag ree on the chair within this period, the chairperson 
of the Commission shall select by lot the chair of the panel within five days, from among the roster 
members who are not nationals of either Party. 
4. If a Party fails to select its panelist within the period indicated in paragraph 2, the chairperson 
of the Commission shall select by lot the panelist within five days, from among the roster members 
who are nationals of that Party. 
5. Panelists shall normally be selected from the roster. 
6. If a Party believes that a panelist is in violati on of the Code of Conduct set out in Annex 19.7, 
the Parties shall consult and if they agree, the pa nelist shall be removed a nd a new panelist shall be 
selected in accordance with this Article. 
Article 19.10 
 
Model Rules Of Procedure  
 1. Unless the Parties otherwise agree, the panel sh all conduct its proceedi ngs in accordance with 
the Model Rules of Procedure set out in Annex 19.10. 
2. The Commission may amend when it considers necessary the Model Rules of Procedure 
referred to in paragraph 1. 
Article 19.11 
 
Information And Technical Advice
 
 
 Upon request of a Party, or on its own initiativ e, the panel may seek information and technical 
advice from any person or body that it deems appr opriate. Any information and technical advice so 
obtained shall be submitted to the Parties for comments.  
 
Article 19.12 
 
Initial Report  
 1. Unless the Parties otherwise agree, the panel shall base its report on the relevant provisions of 
this Agreement, on the submissions and arguments of  the Parties, and on any information before it, 
pursuant to Article 19.11. WT/REG169/1 
Page 128  
 
2. Unless the Parties otherwise agree, the panel sha ll, within 90 days after the last panelist is 
selected, present to the Parties an initial report containing: 
(a) findings of fact, including any findings pur suant to a request under Rule 8 of Annex 
19.10; 
(b) its determination as to whether the measure at  issue is or would be inconsistent with 
the obligations of this Agreement or cause nullification or impairment in the sense of 
Annex 19.2, or any other determination requ ested in the terms of reference; and  
(c) its recommendations, if any, for resolution of the dispute. 
3. Panelists may furnish separate opinions  on matters not unanimously agreed. 
4. The Parties may submit written comments on the initial report within 14 days of its 
presentation. 
5. In case that such written comments by the Parti es are received as provided for in paragraph 4, 
the panel, on its own initiative or at the request of  a Party, may reconsider its report and make any 
further examination that it considers appropr iate after considering such written comments. 
Article 19.13 
 
Final Report
 
 1. The panel shall present a final report to the Parties, including any separate opinions on 
matters not unanimously agreed, within 30 days of presentation of the initial report, unless the Parties 
otherwise agree. 
2. No panel may, either in its initial report or its final report, disclose which panelists are 
associated with the majority or minority of the opinions. 
3. The final report of the panel shall be made public ly available within 15 days of its delivery to 
the Parties. 
Article 19.14 
 
Implementation Of Final Report
 
 1. The final report of a panel shall be binding on the Parties and shall not be subject to appeal. 
Unless the Parties decide otherwise, they shall impl ement the decision contained in the final report of 
the panel in the manner and within the time-frame that it orders. 
2. Notwithstanding paragraph 1, where the final report of the panel states that a measure is not in 
compliance with this Agreement, or is causing nullifi cation or impairment in the sense of Annex 19.2, 
the responding Party, wherever possible, shall abst ain from executing the measure or shall abrogate it. 
Article 19.15 
 
Non-Implementation - Suspension Of Benefits
 
 1. The complaining Party may suspend the applicati on of benefits of equi valent effect to the 
Party complained against if the panel resolves:  WT/REG169/1 
 Page 129 
 
 
(a) that a measure is inconsistent with th e obligations of this Agreement and the 
responding Party does not implement the final report within 30 days following the expiration of the time-frame estab lished in such a report; or 
(b) that a measure causes nullification or impair ment in the sense of Annex 19.2 and the 
Parties do not reach a mutually satisfactory agreement on the dispute within 30 days 
following the expiration of the time-frame  established in the final report. 
2. The suspension of benefits shall last until the responding Party implements the decision of the 
panel’s final report or until the Parties reach a mutually satisfactory agreement on the dispute, 
depending on the case. 
3. In considering what benefits to suspend pursuant to paragraph 1: 
(a) the complaining Party should first seek to suspend benefits in the same sector(s) as 
that affected by the measure or other matter that the panel has found to be inconsistent with the obligations derived of this Agreement or to have caused 
nullification or impairment in the sense of Annex 19.2; and 
(b) if the complaining Party considers that it is  not practicable or effective to suspend 
benefits in the same sector(s), it may suspend benefits in other sectors. The 
communication in which it announces such a decision shall indicate the reasons on 
which it is based. 
4. Upon written request of the Party concerned, th e original panel shall determine whether the 
level of benefits suspended by th e complaining Party is excessive purs uant to paragraph 1. If the panel 
cannot be established with its original members, the proceeding set out in Article 19.9 shall be 
applied. 
5. The panel shall present its determination within 60 days from the request made pursuant to 
paragraph 4, or if a panel cannot be established with its original me mbers, from the date on which the 
last panelist is selected. The ruling of the panel shall be final and binding. It shall be delivered to the 
Parties and be made publicly available. 
Section B - Domestic Proceedings And Private Commercial Dispute Settlement
 
 
Article 19.16 
 
Interpretation Of The Agreement Before Judicial And Administrative Proceedings  
 
1. If an issue of interpretation or application of this Agreement arises, in any domestic judicial 
or administrative proceeding of a Party, which that Pa rty considers would merit its intervention, or if a 
judicial or administrative body requests the views of a Party in this regard, that Party shall notify the 
other Party. The Commission shall endeavour to ag ree on an appropriate response as expeditiously as 
possible. 
2. The Party in whose territory the judicial or administrative body is located shall submit any 
agreed interpretation of the Commission to such a body, in accordance with th e rules of that forum. 
3. If the Commission does not reach an agreement, any Party may submit its own views to the 
judicial or administrative body in accord ance with the rules of that forum. WT/REG169/1 
Page 130  
 
Article 19.17 
 
Private Rights
 
  Neither Party may provide for a right of action for private parties under its domestic law 
against the other Party on the ground that a measur e of the other Party is inconsistent with this 
Agreement.  
Article 19.18 
 
Alternative Dispute Resolution
 
 1. Each Party shall, to the maximum extent po ssible, encourage and facilitate the use of 
arbitration proceeding and other means of altern ative dispute resolution for the settlement of 
international commercial disputes between private parties in the free trade area.  
2. To this end, each Party shall provide appropr iate procedures to ensure observance of 
agreements to arbitrate and for the recognition and en forcement of arbitral awards in such disputes 
under paragraph 1. 
3. A Party shall be deemed to be in compliance w ith paragraph 2 if it is a party to and is in 
compliance with the 1958 United Nations Conventio n on the Recognition and Enforcement of Foreign 
Arbitral Awards. 
 
ANNEX 19.2 
 
Nullification Or Impairment
 
 
1. A Party may have recourse to the dispute se ttlement procedures under this Chapter if the 
application of any measure that is not inconsistent  with this Agreement, results in nullification or 
impairment of any benefit that is reasonably exp ected to accrue to it under any of the following 
provisions contained in: 
(a) Part II; 
(b) Chapter 11; and 
(c) Chapter 15. 
2. With respect to any measure subject to an exception under Article 20.1, the Parties may not 
invoke: 
(a) subparagraphs 1(a) and (c), to the extent that the benefit arises from any crossborder 
trade in services provision of Part II; or 
(b) subparagraph 1(b). 
  WT/REG169/1 
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ANNEX 19.7 
 
Code Of Conduct For Members Of Panels  
 
Definitions  
 
1. For purposes of this Annex: 
 assistant  means a person who, under the terms of  appointment of a member, conducts 
research or provides support for the member;   
 candidate  means an individual whose name is on the roster referred to in Article 19.7 and 
who is under consideration for appointment as a member of a panel under Article 19.9; 
  member  means a member of a panel effec tively established under Article 19.6; 
 
 proceeding , unless otherwise specified, means a panel proceeding under Chapter 19; and  
  staff , in respect of a member, means persons under the direction and control of the member, 
other than assistants.  
Section I : Responsibilities To The Process
 
 
2. Every candidate and member shall avoid impropr iety and the appearance of impropriety, be 
independent and impartial, avoid direct and indirect conflicts of  interests and observe high standards 
of conduct so that the integrity and impartiality of the dispute settlement process are preserved. Former members shall comply with the obligations est ablished in Sections V and VI of this Code of 
Conduct. 
Section II : Disclosure Obligations
 
 3. Prior to confirmation of his or her selection as a member of the panel under Article 19.9, a 
candidate shall disclose any interest, relationship or matter that is likely to affect his or her 
independence or impartiality or that might reasona bly create an appearance of impropriety or bias in 
the proceeding. To this end, a candidate shall make all reasonable efforts to become aware of any such 
interests, relationships and matters. 
4. Once selected, a member shall continue to make  all reasonable efforts to become aware of 
any interests, relationships and matters refe rred to in Rule 3 and shall disclose them by 
communicating them in writing to the Commission for consideration by the Parties. The obligation to 
disclose is a continuing duty, which requires a member  to disclose any such interests, relationships 
and matters that may arise during any stage of the proceeding.  
Section III : Performance Of Duties By Candidates And Members
 
 5. A candidate who accepts a selection as a member shall be available to perform, and shall 
perform, a member's duties thoroughly and expeditio usly throughout the course of the proceeding. 
6. A member shall carry out all duties fairly and diligently. 
7. A member shall comply with this Code of Conduct. 
8. A member shall not deny other members the opportunity to participate in all aspects of the 
proceeding. WT/REG169/1 
Page 132  
 
9. A member shall consider only those issues raised in the proceeding and necessary to 
rendering a decision and shall not delegate the duty to decide to any other person. 
10. A member shall take all reasonable steps to en sure that the member's assistant and staff 
comply with Sections I, II and VI of this Code of Conduct. 
11. A member shall not engage in ex parte  contacts concerning the proceeding. 
12. A candidate or member shall not communi cate matters concerning actual or potential 
violations of this Code of Conduct unless the communication is to the Commission or is necessary to ascertain whether that candidate or member has violated or may violate this Code.  
Section IV : Independence And Impartiality Of Members
 
 
13. A member shall be independent and impartial. A member shall act in a fair manner and shall 
avoid creating an appearance of impropriety or bias. 
14. A member shall not be influenced by self-int erest, outside pressure, political considerations, 
public clamour, loyalty to a Party or fear of criticism. 
15. A member shall not, directly or indirectly, incur any obligation or accept any benefit that 
would in any way interfere, or appear to interfe re, with the proper performance of the member's 
duties. 
16. A member shall not use his or her position on the panel to advance any personal or private 
interests. A member shall avoid actions that may create the impression that others are in a special 
position to influence the member. A member shall make  every effort to prevent or discourage others 
from representing themselves as being in such a position. 
17. A member shall not allow past or existing financial, business, professional, family or social 
relationships or responsibilities to influe nce the member's conduct or judgement. 
18. A member shall avoid entering into any relationshi p, or acquiring any financial interest, that 
is likely to affect the member's impartiality or that might reasonably create an appearance of impropriety or bias. 
Section V : Duties In Certain Situations
 
 19. A member or former member shall avoid actions that may create the appearance that the 
member was biased in carrying out the member's du ties or would benefit from the decision or ruling 
of the panel. 
Section VI : Maintenance Of Confidentiality
 
 
20. A member or former member shall not at an y time disclose or use any non-public information 
concerning the proceeding or acquired during the proceeding except for the purposes of the 
proceeding and shall not, in any case, disclose or use any such information to gain personal advantage 
or advantage for others or to affect a dversely the interest of others people. 
21. A member shall not disclose a panel ruling prior to its publication. 
22. A member or former member shall not at any time disclose the deliberations of a panel, or 
any member's view.  WT/REG169/1 
 Page 133 
 
 
Section VII : Responsibilities Of Assistants And Staff  
 23. Sections I, II and VI of this Code of Co nduct apply also to assistants and staff. 
 
ANNEX 19.10 
 
Model Rules Of Procedure
 
 
Application 
 1. These Rules are established under Article 19. 10 and shall apply to dispute settlement 
proceedings under Chapter 19 unless the Parties otherwise agree. 
Definitions 
 
2. For purposes of this Annex: 
 adviser  means a person retained by a Party to advi se or assist the Party in connection with the 
panel proceeding;   complaining Party  means a Party that requests the establishment of a panel under        
Article 19.6;  
 legal holiday , with respect to a Party's Secretariat,  means every Saturday and Sunday and any 
other day designated by that Party as a holiday for purposes of these Rules and notified by that Party 
to its Secretariat and by that Secretariat to the other Secretariat and the other Party;    panel  means a panel established under Article 19.6; 
 
 representative of a Party  means an employee of a government department or of any other 
government entity of a Party;   responsible Secretariat  means the Secretariat of the Party complained against; and 
 
 Secretariat  means the Secretariat established under Article 18.2.1. 
 3. Any reference made in these Rules to an Artic le, Annex or Chapter is a reference to the 
appropriate Article, Annex or Chapter of this Agreement. 
Terms Of Reference For Panels 
 
4. Unless the Parties otherwise agree within 20 days  from the date of the delivery of the request 
for the establishment of the panel, the terms of reference shall be: 
"To examine, in the light of the relevant provisi ons of this Agreement, the matter referred to 
the panel and deliver the written reports referred to in Articles 19.13 and 19.14." 
 
5. The Parties shall promptly deliver the agreed  terms of reference to the panel, upon the 
designation of the last panelist. 
6. If the complaining Party argues that a matter has nullified or impaired benefits, the terms of 
reference shall so indicate. WT/REG169/1 
Page 134  
 
7. If a Party requests the panel to make findings as to the degree of adverse trade effects on a 
Party of the measure found not to conform with the obligations of the Agreement or to have caused 
nullification or impairment in the sense of Annex 19.2, the terms of reference shall so indicate. 
Written Submissions And Other Documents 
 8. The Parties shall deliver the original and as many  copies as the Secretariat requires and in any 
event no less than five copies of their respective written submissions to their respective Secretariats 
which, in turn, shall retain a copy and forward the original and the remaining copies by the most 
expeditious means practicable to the responsible Secr etariat. The responsible Secretariat shall deliver 
the submissions by the most expeditious means practicable to the other Party and the panel. 
9. A complaining Party shall deliver its initial writte n submission to its Secretariat no later than 
10 days after the date on which th e last panelist is designated. Th e responding Party shall deliver its 
written counter-submission to the responsible Secret ariat no later than 20 days upon receipt of the 
initial written submission of the complaining Party. 
10. A request, notice or other document related to the panel proceeding that is not covered by 
Rule 8 or 9, the Party shall deliver copies of the document to both Secretariats and to the other Party 
by facsimile or other means of electronic transmission. 
11. A Party may correct minor errors of a cler ical nature in any request, notice, written 
submission or other document related to the pane l proceeding by delivering a new document clearly 
indicating the changes. 
12. A Party that delivers any request, notice, written submission or other document to its 
Secretariat shall, to the extent practicable, also de liver a copy of the document in electronic form to 
that Secretariat. 
13. Any delivery to a Secretariat under these Rules shall be made during the normal business 
hours of that Secretariat. 
14. If the last day for delivery of a document to a Secretariat falls on a legal holiday observed by 
that Secretariat or on any other day on which the offices of that Secretariat are closed by order of the 
government or by force majeure, the document may be delivered to that Secretariat on the next 
business day. 
Operation Of Panels 
 
15. The chair of the panel shall preside at all of its meetings. A panel may delegate to the chair 
authority to make administrative and procedural decisions. 
16. Except as otherwise provided in these Rules,  the panel may conduct its business by any 
means, including by telephone, facsimile transmission and computer links.  
17. Only panelists may take part in the delibera tions of the panel, but the panel may permit 
assistants, interpreters or translators to be present during such deliberations. 
18. Where a procedural question arises that is not addressed by these Rules, a panel may adopt an 
appropriate procedure that is c onsistent with this Agreement. 
19. If a panelist dies, withdraws or is removed from the panel, a replacement shall be selected as 
expeditiously as possible in accordance with  the procedures to designate panelists.  WT/REG169/1 
 Page 135 
 
 
20. The time-period applicable to the panel proceedi ng shall be suspended for a period that begins 
on the date on which the panelist dies, withdraws or is removed from the panel and ends on the date 
on which the replacement is selected. 
21. A panel may, in consultation with the Parties, modify any time-period applicable in the panel 
proceeding and make other procedural or admini strative adjustments as may be required in the 
proceeding, such as in cases where a panelist is repl aced or where the Parties are required to reply in 
writing to the questions of a panel. 
Hearings 
 
22. The chair shall fix the date and time of the hear ing in consultation with the Parties, the other 
members of the panel and the responsible Secretariat. The responsible Secretariat shall notify the 
Parties in writing of the date, time and location of the hearing. 
23. The hearing shall be held in the capita l of the Party complained against. 
24. The panel may convene additional hearings if the Parties so agree. 
25. All panelists shall be present at hearings. 
26. The following persons may attend a hearing: 
(a) representatives of the Parties; 
(b) advisers of the Parties, provided that they do not address the panel and they or their 
employers, partners, business associates or family members do not have a financial or personal interest in the proceeding; 
(c) Secretariat personnel, interpreters, transl ators and court reporters (designated note 
takers); and 
(d) panelists' assistants. 
27. No later than five days before the date of a h earing, each Party shall deliver to the other Party 
and the responsible Secretariat a list of the names of those persons who will make oral arguments or 
presentations at the hearing on behalf of that Part y and of other representatives or advisers who will 
attend the hearing. 
28. The hearing shall be conducted by the panel in the following manner, ensuring that the 
complaining Party and the Party complained  against are afforded with equal time: 
(a) Argument: 
(i) argument of the complaining Party. 
(ii) argument of the Party complained against. 
(b) Reply and Counter-Reply: 
(i) reply of the complaining Party. 
(ii) counter-reply of the Party complained against. WT/REG169/1 
Page 136  
 
29. The panel may direct questions to any Party at any time during a hearing. 
30. The responsible Secretariat shall arrange for a tr anscript of each hearing to be prepared and 
shall, as soon as possible after it is prepared, deliver a copy of the transcript to the Parties, the other 
Secretariat and the panel. 
Supplementary Written Submissions 
 
31. The panel may at any time during a proceeding a ddress questions in writing to one or both of 
the Parties. The panel shall deliver the written questi ons to the Party or Parties to whom the questions 
are addressed through the responsible Secretariat, whic h, in turn, shall provide for the delivery of 
copies of the questions by the most expeditious means practicable to the other Secretariat and the 
other Party. 
32. The Party to whom the panel addresses written qu estions shall deliver a copy of any written 
reply to its Secretariat which, in turn, shall pr ovide for delivery of that submission by the most 
expeditious means practicable to the other Secret ariat and the panel. The other Secretariat shall 
provide for delivery of that submission by the most expeditious means practicable to the other Party. 
The other Party shall be given the opportunity to  provide written comments on the reply within five 
days after the date of delivery. 
33. Within 10 days after the date of the heari ng, each Party may deliver to its Secretariat a 
supplementary written submission responding to any matter that arose during the hearing. 
Burden Of Proof Regarding Inconsistent Measures And Exceptions 
 34. The Party asserting that a measure of the other Party is inconsistent with th e provisions of this 
Agreement shall have the burden of  establishing such inconsistency. 
35. The Party asserting that a measure is subject to  an exception under this Agreement shall have 
the burden of establishing that the exception applies. 
Availability Of Information 
 
36. The Parties shall maintain the confidentiality of the panel's hearings, deliberations and initial 
report, and all written submissions to, and communications with, the panel, in accordance with the 
following procedures: 
(a) A Party or, subject to its instructions, the Party's Secretariat, may make available to 
the public at any time that Party's written submissions and those of the other Party. 
Before such documents are made availabl e to the public any information designated 
for confidential treatment by a Party pursuan t to subparagraph (d) shall be removed; 
(b) A Party or, subject to its instructions, the Party's Secretariat, may make the hearing 
transcript available to the public 15 days af ter the final report of the panel is made 
public pursuant to Article 19.13.3. Before the transcript is made available to the 
public, any information designated for confidential treatment by a Party pursuant to 
subparagraph (d) shall be removed; 
(c) Where information has been removed from a document pursuant to  subparagraph (a) 
or (b), the document shall indicate clearly where such information has been removed; 
(d) To the extent it considers strictly necessary to protect personal privacy or to address 
essential confidentiality concerns, a Part y may designate specific information  WT/REG169/1 
 Page 137 
 
 
included in its written submissions, or that it has presented in the panel hearing, for 
confidential treatment; 
(e) A Party may disclose to other persons such information in connection with the panel 
proceedings as it considers necessary for the pr eparation of its case, but it shall ensure 
that those persons maintain the confid entiality of any such information; 
(f) A Party shall treat as confidential the initial report and information submitted by the 
other Party to the panel that the Party has designated as confidential pursuant to subparagraph (d); 
(g) The responsible Secretariat shall take such reasonable steps as ar e necessary to ensure 
that experts, interpreters, translators, court reporters (designa ted note takers) and 
other individuals retained by the Secretaria t maintain the confidentiality of the panel 
proceedings; and 
(h) Except as provided under paragraphs (a) a nd (b), the Secretariat personnel shall 
maintain the confidentiality of the panel proceedings. 
Ex parte Contacts 
 
37. The panel shall not meet or contact a Party in the absence of the other Party. 
38. No panelist may discuss any aspect of the subject  matter of the proceeding with a Party or 
with the Parties in the absence of the other panelists. 
Official Language 
 39. Written submissions, oral arguments or presentati ons at the hearing, initial and final panel 
reports, as well as all other written or oral communica tions between the Parties and the panel, related 
to panel proceedings, shall be conducted in English. 
Computation Of Time 
 40. Where anything under this Agreement or these Ru les is to be done, or the panel requires 
anything to be done, within a number of days after or  before a specified date or event, the specified 
date or the date on which the specified event occu rs shall not be included in calculating that number 
of days. 
41. Where, by reason of the operation of Rule 14, a Party receives a document on a date other 
than the date on which the same document is recei ved by the other Party, any period of time the 
calculation of which is dependent on  such receipt shall be calculated from the date of receipt of the 
last such document. 
Suspension Of Benefits Panels 
 
42. These Rules shall apply to a panel established under Article 19.15 except that: 
(a) the Party that requests the establishment of  the panel shall deliver its initial written 
submission to its Secretariat within 10 days after the date on which the last panelist is 
designated; WT/REG169/1 
Page 138  
 
(b) the responding Party shall deliver its writte n counter-submission to its Secretariat 
within 15 days upon receipt of the ini tial written submission of the complaining 
Party; 
(c) the panel shall fix the time limit for delivering any further written submissions, 
including rebuttal written submissions, so  as to provide each Party with the 
opportunity to make an equal number of writte n submissions subject to the time limits 
for panel proceedings set out in this Agreement and these Rules; and 
(d) unless the Parties disagree, the panel may decide not to convene a hearing. 
Responsible Secretariat 
 43. The responsible Secretariat shall: 
(a) provide administrative assistance to the panel; 
(b) provide administrative assistance to experts, panelists and their assistants, 
interpreters, translators, court reporters (d esignated note takers) or other individuals 
that it retains in a panel proceeding; 
(c) make available to the panelists, upon confir mation of their appointment, copies of this 
Agreement and other documents relevant to the proceedings of the panel, such as the 
Uniform Regulations and these Rules; 
(d) retain indefinitely a copy of the comple te record of the panel proceeding; and 
(e) compensate in accordance with Rules 44, 45 and 46. 
Remuneration And Payment Of Expenses 
 
44. The responsible Secretariat shall establish the amounts of remuneration and expenses that will 
be paid to the panelists, their assistants, court re porters (designated note takers) or other individuals 
that it retains in a panel proceed ing upon agreement by both Parties. 
45. The remuneration of the amounts established unde r Rule 44 shall be borne equally by the 
Parties unless otherwise agreed by them. 
46. Each panelist or other persons w ho participate in the panel pro ceeding shall keep a record and 
render a final account of the person’s time and expen ses, and the panel shall keep a record and render 
a final account of all general expenses. 
Maintenance Of Rosters 
 47. The Parties shall inform each Secretariat of the composition of the roster established under 
Article 19.7. The Parties shall promptly inform thei r counterpart Secretariat of any changes made to 
the roster. 
  WT/REG169/1 
 Page 139 
 
 
PART VII : OTHER PROVISIONS 
 
CHAPTER 20 : EXCEPTIONS 
 
Article 20.1 
 
General Exceptions  
 1. Article XX of GATT and its interpretative notes or any equivalent provision of a successor 
agreement to which both Parties are party are incorpor ated into and made part of this Agreement, for 
purposes of: 
(a) Part II, except to the extent that a provisi on of that Part applies to services or 
investment; and 
(b) Chapter 15, except to the extent that an y of its provisions applies to services. 
2. Subparagraphs (a), (b) and (c) of Article XIV of the GATS are incorporated into and made 
part of this Agreement, for purposes of: 
(a) Part II, to the extent that a provision of that Part applies to services; 
(b) Chapter 11; 
(c) Chapter 12; and 
(d) Chapter 15, to the extent that any of its provisions applies to services. 
Article 20.2 
 
National Security
 
 1. Nothing in this Agreemen t shall be construed: 
(a) to require a Party to furnish any inform ation the disclosure of which it considers 
contrary to its essential security interests; 
(b) to prevent a Party from taking any actions which it considers necessary for the 
protection of its essential security interests: 
(i) relating to the traffic in arms, ammuniti on 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 military establishment; 
(ii) taken in time of war or other emerge ncy in international relations; or 
(iii) relating to fissionable and fusionable materials or the materials from which 
they are derived; or 
(c) to prevent a Party from taking any action in pursuance of its obligations under the 
United Nations Charter for the maintena nce of international peace and security. WT/REG169/1 
Page 140  
 
2. The Commission shall be informed to the full est extent possible of measures taken under 
subparagraphs 1(b) and (c) and of their termination. 
Article 20.3 
 
Taxation
 
 
1. For purposes of this Chapter: 
 tax convention  means a convention for the avoidance of double taxation or other 
international taxation agreement or arrangement; and  
 taxes and taxation measures  do not include a "custom duty" as defined in Article 3.1. 
 2. Except as set out in this Article, nothing in th is Agreement shall apply to taxation measures. 
3. Nothing in this Agreement shall affect the right s and obligations of either Party under any tax 
convention. In the event of any inconsistency betw een this Agreement and any such convention, that 
convention shall prevail to the extent of the inconsistency. 
4. Notwithstanding paragraph 3, Article 3.3 and ot her provisions of this Agreement necessary to 
give effect to that Article shall apply to taxati on measures to the same ex tent as does Article III of 
GATT. 
Article 20.4 
 
Balance Of Payments
 
 1. Where a Party is in serious balance of paymen ts and external financial difficulties, or under 
threat thereof, it may adopt or maintain restrictiv e measures with regard to trade in goods and in 
services and with regard to payments and capital movements, including those related to direct 
investment. 
2. The Parties shall endeavour to avoid the applica tion 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. They shall be in accordance with the co nditions established in the 
WTO Agreement and consistent with the Articles of  Agreement of the International Monetary Fund, 
as applicable. 
4. The Party maintaining or having adopted restric tive measures, or any changes thereto, shall 
promptly notify them to the other Party and present, as soon as possible, a time schedule for their removal. 
5. The Party applying restrictive measures shall c onsult promptly within the Commission. Such 
consultations shall assess the balance of payments situ ation 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 pa yments and external financial difficulties; 
(b) the external economic and trading envi ronment of the consulting Party; and  WT/REG169/1 
 Page 141 
 
 
(c) alternative corrective measures which may be available. 
6. The consultations shall address the compliance of any restrictive measures with paragraphs 3 
and 4. All findings of statistical and other facts pr esented by the Internati onal Monetary Fund relating 
to foreign exchange, monetary r eserves and balance of payments, shall be accepted, and conclusions 
shall be based on the assessment by the Fund of th e balance of payments and the external financial 
situation of the consulting Party. 
 
CHAPTER 21 : FINAL PROVISIONS 
 
Article 21.1 
 
Annexes, Appendices And Notes  
  The Annexes, Appendices and Notes to this Agre ement shall constitute integral parts of this 
Agreement. 
 
Article 21.2 
 
Amendments
 
 1. The Parties may agree on any modification of or addition to this Agreement. 
2. When so agreed, and approved in accordance with  the legal procedures of each Party, such a 
modification or addition under para graph 1 shall constitute an integr al part of this Agreement.  
Article 21.3 
 
Entry Into Force
 
 
 This Agreement shall enter into force 30 days  after an exchange of written notifications, 
certifying the completion of the necessary legal procedures of each Party.  
Article 21.4 
 
Termination Of The Bilateral Investment Treaty
 
  Both Parties agree that “The Agreement betw een the Government of the Republic of Chile 
and the Government of the Republic of Korea on the Reciprocal Promotion and Protection of 
Investments”(BIT), signed in Santiago, Chile on Se ptember 6, 1996, shall no longer be in effect upon 
the entry into force of this Agreement, as well as all the rights and obligations derived from the BIT. 
 
Article 21.5 
 
Work Program On Financial Services
 
 
 Unless otherwise agreed by the Parties, the authorities responsible for financial services will 
meet four years after the entry into force of this  Agreement, to discuss th e viability and convenience 
of incorporating financial services into this Agreement.   WT/REG169/1 
Page 142  
 
Article 21.6 
 
Duration And Termination
 
  This Agreement shall have an indefinite dur ation. A Party may terminate the Agreement on 
six months’ prior written notice to the other Party. 
 
Article 21.7 
 
Authentic Texts
 
 
1. The Korean, Spanish and English texts of this Agreement are equally au thentic. In the event 
of divergence, the English text shall prevail. 
2. At the latest, upon the entry into force of th e Agreement, the Parties agree to add, by 
exchange of notes, the English version of Appendix 1,  Section B of Annex 3.4 as an integral part of 
this Agreement. 
 
 IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have si gned this Agreement. 
  DONE in Seoul, on the fifteenth day of February of 2003, in duplicate, in the Korean, Spanish 
and English languages. 
    FOR THE GOVERNMENT OF  FOR THE GOVERNMENT OF 
 THE REPUBLIC OF KOREA  THE REPUBLIC OF CHILE 
 
 
__________