. /. RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/REG38/M/5 
5 January 2004  
 
(04-0007) 
Committee on Regional Trade Agreements 
Thirty-Fifth Session  
 
 
 
EXAMINATION OF THE FREE TRADE AGREEMENT 
BETWEEN CANADA AND CHILE, SERVICES 
 
Note on the Meeting of 3 December 2003  
 
Chairman:  Ambassador J. Meetoo (Mauritius) 
  
1. The meeting was convened in document WTO/AIR/2217/Rev.1. 
2. Under Agenda Item D.IX of its Thirty-F ifth Session, the Committee on Regional Trade 
Agreements (CRTA) took up the examination of the services aspects of th e Free Trade Agreement 
between Canada and Chile (CCFTA). 
3. The Chairman
 noted that this was the second round of examination of the services aspects of 
the CCFTA.  The proceedings of the first round,  which had taken place in  June 2002, had been 
distributed in document WT/REG38/M/4.  He added th at the recent exchange of written questions and 
replies had been distributed in document WT/REG38/6. 
4. The representative of Japan  was interested in the nature of the relationship between the 
CCFTA and the Free Trade Area of the Americas (FT AA) process; he asked, in particular, whether 
the CCFTA would be integrated within the FTAA, if and when these negotiations were completed.  
The representative of Chile  indicated that her reply would be preliminary since the issue of MFN 
within the FTAA would only be discussed once the ne gotiations had been concluded.  At the present 
stage, it was not certain that the scope of the FTAA would be as broad as that of the CCFTA; this 
might prevent such integration.  However, she reite rated that the issue of compatibility of the CCFTA, 
and of Chile's other RTAs, with the FTAA would have to be looked at once the FTAA had been 
finalized. 
5. The representative of Japan  had two questions under Secti on II of the Standard Format 
dealing with provisions affecting trade in services.  The first one concerned financial services, which 
she understood as being subject to the provisions of Chapter H (Cross-Border Trade in Services).  She 
noted that under the Chapter G (Investment) the Par ties had agreed to seek further liberalization in 
financial services and she wished to know about the fu ture plan or schedule for such liberalization.  
Furthermore, she sought confirmation that such lib eralization only applied to services under Mode 3.  
The second question concerned air transport services.   She remarked that, according to document 
WT/REG38/6, Chapter H not only had excluded fro m the scope of the Agreement air services other 
than aircraft repair and maintenance services a nd specialty air services, but also the selling and 
marketing of air transport services and computer reservation system (CRS) services.  Since the latter was, however, included under Chapter G (Investment ), she wondered whether that was the case also 
for the selling and marketing of air transport servi ces.  With respect to the first question, the 
representative of Chile
 said that it was her understanding that financial services were covered under 
the Investment Chapter.  Discussions on cross-border services and financial services had taken place but had not yet generated any concre te results.  As for air transportation, she indicated that landing 
rights were excluded from the Agreement because th ey were governed by bilateral agreements.  WT/REG38/M/5 
Page 2  
 
Turning to air services, these had been included under the Investment Chapter but not under the 
Services Chapter.  She explained, however, that an  exclusion via Annex II meant that the sector had 
not been excluded per se  but only temporarily.  The representative of Japan
 would be submitting the 
question in writing. 
6. The Chairman  noted that the second round of examination of the services aspects of the Free 
Trade Agreement between Canada and Chile had allowed the Committee to clarify a number of 
issues, but some outstanding questions seemed to remain.  He invited delegations to forward any additional questions in writing to the Secretariat by 31 January 2004 and Parties to submit replies  in 
writing by not later than 31 March 2004.  He considered the factual examination as completed.  Once replies had been circulated, any request for add itional information could be dealt with in writing 
without holding another round of examination.  Th e Secretariat could then begin drafting the report 
for this examination. 
7. The Committee took note
 of the comments made. 
 
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