RESTRICTEDWORLD TRADE
ORGANIZATIONTN/S/O/CHL
16 July 2003
(03-3854)
Council for Trade in Services
Special SessionOriginal:  Spanish
CHILE
Initial offer
The following initial offer was received from the Delegation of Chile on 10 July 2003 with
the request that it be circulated to Members of the Council for Trade in Services.
_______________
INTRODUCTION
1. Pursuant to paragraph 6 of the Doha Ministerial Declaration concerning Members’
commitment to submit a conditional initial offer for the negotiations provided for in Article XIX of
the General Agreement on Trade in Services (GATS), Chile hereby submits its conditional initial
offer of specific commitments in services.
2. By means of this offer, Chile reiterates its WTO commitment to achieving a progressively
higher level of liberalization and delivering effective access to its services markets.
3. Given that Chile's offer takes the concepts set forth in Article I.3 of the GATS into account,
the attached offer does not include services supplied in the exercise of governmental authority.
4. Furthermore, pursuant to Article VI of the GATS, Chile reserves the right to establish,
maintain and fully exercise its national legislation in order to achieve legitimate policy objectives in
areas such as consumer protection, health and the environment, inter alia . Likewise, Chile reserves
the right to revise or amend this offer in the light of the outcome of the work of the subsidiary bodiesof the Council for Trade in Services.
5. Chile reiterates that this offer is conditional and that it therefore reserves the right to
withdraw, amend or supplement all or part of it at any time prior to the conclusion of the negotiations,
in accordance with, inter alia , the course of the negotiations in other areas, such as agriculture, market
access for non-agricultural products and rules. It also reserves the right to submit technicalamendments or corrections.
6. In the event of the negotiations provided for in paragraphs 20-22 of the Doha Ministerial
Declaration taking place and of their giving rise to an agreement on investment, Chile reserves the
right to withdraw the mode 3 commitments from th is offer and include them in the new agreement
and to make the corresponding adjustments to its existing commitments.
HORIZONTAL COMMITMENTS
7. Chile's initial offer contains no changes to its horizontal commitments. Nevertheless, Chile is
striving to improve its mode 4 commitments which will be included in a forthcoming submission. InTN/S/O/CHL
Page 2
this connection, it is worth noting that Chile is a co-sponsor of document TN/S/W/14 which refers to
the importance of greater liberalization of mode 4 for trade in services and to the need to discuss on a
multilateral basis the main barriers currently hindering this mode of supply. Furthermore, Chile
reiterates the need to strive to improve the access of all Members to mutual recognition agreements
under Article VII and to enhance related disciplines in the context of Article VI.4.
SPECIFIC COMMITMENTS
8. This contribution by Chile includes offers in the sectors of professional services, taxation
services, energy services, computer and related services, real-estate services, leasing services,
management consulting services and maritime transpor t services. With regard to the latter, Chile, as
indicated in the “Joint Statement on the Negotiations on Maritime Transport Services” (TN/S/W/11),
urges all Members to participate actively in the current negotiations with a view to achieving
significant liberalization in this sector.
9. Insofar as was possible, Chile drew up its Schedule of Commitments on the basis of the
Services Sectoral Classification List (MTN.GNS/W/120) and in accordance with the definitions in the
United Nations' Provisional Central Product Classification. However, in some sectors, such as energy
services, Chile is following the “Proposed Guide for Scheduling Commitments on Energy Services in
the WTO” (JOB(03)/89).
MFN EXCEPTIONS
10. Chile is maintaining its exceptions to this principle at this stage of the negotiations, but is
keeping them under constant review with a view to moving towards their elimination.
11. In conclusion, Chile hereby expresses its willingness to comment on or clarify any doubts
concerning its conditional initial offer.TN/S/O/CHL
Page 3CHILE – CONSOLIDATED SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED IN
THIS SCHEDULE(3) The commitments in this Schedule extend only
to service suppliers who operate in Chile
through a commercial presence, are establishedas a foreign investment and governed by therules and legal procedures in force on directforeign investment.  The commercial presencecovered by this Schedule is that effected solely
through the Foreign Investment Statute and
financed by external capital.
Authorization to deliver services through a
commercial presence may take into account thefollowing criteria:
(a) The effect of the commercial presence on
economic activity, including its effect onemployment, on the use of parts, componentsand services produced in Chile and on exports
of services;(3) Foreign investors may transfer their capital
abroad three years from the date of its entry.
Real-estate acquisitions and the performance of
other legal acts in border areas must comply
with the provisions of the relevant legislation,which is unbound for the purposes of thisSchedule.  The border area is defined as landwithin a distance of 10 km from the border and
5 km. from the coast and province of Arica.
With regard to services that fall under the
heading "professional services", at least 85 per
cent of the staff employed by a service supplier
established in Chile must be Chilean.
As regards all other services listed in this
Schedule, at least 85 per cent of the staffemployed by a service supplier established inChile must be Chilean, except in the case of
enterprises with fewer than 15 employees.
(b) The effect of the commercial presence on
productivity, industrial efficiency,technological development and product
innovation in Chile;
(c) The effect of the commercial presence on
competition in the sector in question and other
sectors, on consumer protection, on the smooth
functioning, integrity and stability of themarket, and on the national interest;TN/S/O/CHL
Page 4Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
(d) The contribution of the commercial presence to
Chile's integration into world markets.
This Schedule applies only to the followingtypes of commercial presence for foreigninvestors: open and closed corporations,private-limited companies, and subsidiaries(which, under Chilean legislation, are the
equivalent of corporation agencies).
(4) Unbound, except for transfers of natural
persons within a foreign enterprise established
in Chile, in accordance with (3) commercialpresence, senior and specialized personnel whohave been in the employ of the organization fora period of at least two years immediatelypreceding the date of their application for
admission performing the same type of duties
as in the parent company of their country oforigin.  In any case, in accordance with (3)commercial presence, foreign natural personsmay not make up more than 15 per cent of the
total staff employed in Chile.(4) Unbound, except for the categories of natural
persons listed under market access.
The category of senior and specializedpersonnel does not include members of the
board of directors of a company established inChile.
For all legal purposes, senior and specializedpersonnel must establish domicile or residencein Chile.TN/S/O/CHL
Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Senior personnel are executives who come
under the direct supervision of the board ofdirectors of the enterprise established in Chile
and who, inter alia :
- direct the management of the organization or
one of its departments or subdivisions;
- supervise and control the work of other
supervisory, professional or managerial
employees;
- are personally authorized to hire and dismiss,
recommend hiring and dismissal and take other
personnel actions.
Specialized personnel are highly qualifiedpersons who are indispensable to the supply of
the service because of their professionalknowledge or:
- possession of qualifications for a particular
type of work or activity requiring specialized
technical expertise;
- proprietary knowledge of the organization's
services, research equipment, techniques or
management;  and
- the non-availability of such specialized
personnel in Chile.
Service providers are admitted into Chile
temporarily for a period of two years which can
be extended for a further two years.  Personnel
admitted under these conditions will be subjectto the labour and social security legislation inforce.TN/S/O/CHL
Page 6Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
II. SECTOR-SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional services
International legal services1
Solely advisory services on
matters of publicinternational law andinternational commercial
law (86190)Without prejudice to what is established in
Section I (Horizontal Commitments), suppliersof the professional services included in thisSchedule may be subject to assessment by the
competent authorities in connection with which
they must show that they fulfil the requirementsdesigned to ensure that they performcompetently in the sector.
If professional advisory services involve anappearance or formal procedures before a
Chilean court of justice or administrative body
then this appearance shall be made or thisprocedure executed by a professional recognizedin Chile.
(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
                                                     
1  Refers solely and exclusively to matters relating to public international law.  If an advisory service involves an appearance b efore a Chilean court of justice or
administrative body, then this must be conducted by a lawyer au thorized to practise in Chile who fulfils the requirement of bei ng a Chilean national.  The same requirement must be
fulfilled whenever there is a need for a written instrument or fo rmal procedure to be executed by a professional recognized in Chile.  The provision of advisory services does not
confer the right to use the title of Attorney and therefore does not include representation services in contentious or non-cont entious matters .TN/S/O/CHL
Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Accounting and auditing2
Financial auditing
(86211)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Accounting review
(86212)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Taxation services (863) (1) Unbound
(2) Unbound
(3) None(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section/Chile may grant
preferential subsidies to Chilean nationals.
Architectural services
Advisory and pre-design
architectural services(86711)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
                                                     
2 Financial statements must be endorsed by a professional legally authorized to practise in Chile .TN/S/O/CHL
Page 8Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Architectural design
(86712)(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.
Engineering services
Engineering design
services for industrialprocesses and production(86725)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Engineering design
services relating to sanitaryworks(86726)(1) Unbound
(2) Unbound
(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None(4) Unbound, except as indicated in the horizontal
section.
Mechanical engineering
design services(86726)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Electrical engineering
design services(86726)(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.
Chemical and process
engineering design services(86726)(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.
Environmental engineering
design services(86726)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 10Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Integrated engineering
services for energyservices (86733)(1) None
(2) None
(3) None
(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) Unbound for anthropological,
archaeological and palaeontological studies,research or any other activity conducted inthe 200-nautical-mile maritime zone under
national jurisdiction and studies in border
areas.
Chile may grant preferential subsidies to
Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section, in which case the
restrictions for Modes 1, 2 and 3 apply.
Chile may grant preferential subsidies to
Chilean nationals.
COMPUTER ANDRELATED SERVICES
Consultancy servicesrelated to the installationof computer hardware(841)
Software implementation
services (842)
Data processing services
(other than data-
processing services for
financial services) (843)
Database services (other
than database services for
financial services) (844)(1) None
(2) None(3) None(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) None/Chile may grant preferential 
subsidies to Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section/Chile may grant
preferential subsidies to Chilean nationals.TN/S/O/CHL
Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
REAL-ESTATE
SERVICES
Real-estate services
involving own or leased
property  (821)(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section/Chile may grant
preferential subsidies to Chilean nationals.
Real-estate services on a
fee or contract basis (822)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section/Chile may grantpreferential subsidies to Chilean nationals.
MANAGEMENTCONSULTINGSERVICES
General management 
consulting services(86501)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Financial management 
consulting services(86502)(1) Unbound
(2) Unbound
(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 12Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Marketing management 
consulting services(86503)(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Production management 
consulting services(86505)(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.
Human resources 
management consulting services(86505)(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.
Management consultingservices  for energy
services (865)(1) None
(2) None(3) None
(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section/Chile may grantpreferential subsidies to Chilean nationals.TN/S/O/CHL
Page 13Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Services related to
management consultingfor energy services
(86601)(1) None
(2) None(3) None
(4) Unbound, except as indicated in the
horizontal section.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
(4) Unbound, except as indicated in the
horizontal section/Chile may grantpreferential subsidies to Chilean nationals.
LEASING SERVICES(WITHOUT OPERATOR)
Leasing or rental servicesconcerning private cars
(without operator) (83101)(1) Unbound
(2) Unbound(3)None Only legal persons established in Chile as
open corporations.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Leasing or rental services
concerning aircraft (without
operator) (83104)(1) Unbound
(2) Unbound
(3)None Only legal persons established in Chile as
open corporations.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None(4) Unbound, except as indicated in the horizontal
section.
Leasing or rental servicesconcerning agriculturalmachinery and equipment
(without operator) (83106)(1) Unbound
(2) Unbound
(3)None Only legal persons established in Chile as
open corporations.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 14Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Leasing or rental services
concerning constructionmachinery and equipment
(without operator) (83107)(1) Unbound
(2) Unbound(3)None Only legal persons established in Chile as
open corporations.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
COMMUNICATIONS
SERVICES
Telecommunications
servicesIn the case of private services the purpose ofwhich is to meet the specifictelecommunications needs of particularenterprises, entities or persons by prioragreement, the supply of these services does notgive access to traffic from or to public
telecommunications network users.
BASIC
TELECOMMUNICATION
SERVICES
Telecommunicationsservices consist of the
transport of electromagneticsignals (sound, data, imageand any combinationthereof), regardless of the
type of technology used.TN/S/O/CHL
Page 15Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
This definition does not
cover the economic activityconsisting of the provisionof a service the content of
which requires the use of
telecommunications servicesfor its transport. Theprovision of a service thecontent of which is
transported via
telecommunications servicesis subject to the terms andconditions established forthat sector, subsector oractivity in Chile's Schedule
of Specific Commitments.
Chile's Schedule of
Commitments excludes
basic local
telecommunicationsservices, one-way satellitetransmissions of Direct-to-Home and Direct-Broadcast-Satellite
television services and
digital audio services.  Italso excludes free receptionbroadcasting services.
It includes only internationaland domestic long-distancebasic telecommunications
services:TN/S/O/CHL
Page 16Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
(a) Voice telephone services
(CPC 7521)
(b) Packet-switched data
transmission services (CPC
7523**)
(c) Circuit-switched data
transmission services (CPC
7523**)(1) None
(2) None
(3) Subject to a concession, licence or permit from
the Undersecretariat for Telecommunications
(SUBTEL).
A supplier providing a (domestic and
international) long-distance telephone service
must be an open corporation.(1) None
(2) None(3) None
(d)  Telex services
(CPC 7523**)
(e) Telegraph services
(CPC 7522)
(f) Facsimile services
(CPC 7521** + 7529**)
(g) Private leased circuit
services (CPC 7522** +
7523**)To promote free competition, for a period of
four years from 27 August 1994, participation in
the market by suppliers of domesticlong-distance services shall be limited to amaximum percentage of the total taxableminutes for domestic long-distance telephone
services established by law.
(4) Unbound, except as indicated in the horizontal
section. (4) Unbound, except as indicated in the horizontal
section.Additional commitments
concerning regulatory
aspects (see attached note)
Other:
Domestic and international
satellite services and
satellite links/capacity.TN/S/O/CHL
Page 17Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Mobile/cellular services:
personal communicationsservices, paging services,mobile data transmission
services.
VALUE-ADDED 
SERVICES
On-line information
retrieval
Electronic mailFacsimile
Data processing(1) None
Subject to a correspondent agreement with an
international services concessionaire.
(2) Unbound
(3) Subject to obtaining a permit. Contract with a
public service concessionaire. Complementaryservice authorization from the Undersecretariat
for Telecommunications (SUBTEL).
(4) Unbound, except as indicated in the horizontal
section.(1) None
(2)  Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.
PRIVATE LEASED
CIRCUITS
Voice telephone service
Data transmissionElectronic mail(1) Unbound
*
(2) Unbound
(3) Subject to the granting of limited service.(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) Unbound
(3) None(4) Unbound, except as indicated in the horizontal
section.
                                                     
* Unbound because not technically feasible.TN/S/O/CHL
Page 18Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Financial services sector:
1. The Chilean financial services sector is partially compartmentalized, that is to say, domestic and foreign institutions autho rized to operate as banks may not encroach
directly on the insurance or securities business and vice versa. However, subject to authorization from the Banking and Financi al Institutions Supervision Department
(SPIF), domestic and foreign banks operating in Chile may set up subsidiaries, with their own capital, to supply other financia l services in addition to their main line of
business. The main business of banks is accepting or receiving money from the public on a regular basis and granting money cred its represented by securities or negotiable
instruments or any other credit instrument.
2. The subsectors and services in this Schedule are defined in accordance with the relevant Chilean legislation.
FINANCIAL SERVICES (1), (2), (3) and (4)  Unbound in respect of
measures adopted or to be adopted by theCentral Bank of Chile under its constitutivelaw (Law No. 18,840) and other legislation in
order to ensure currency stability and normal
domestic and foreign payment operations. Forthis purpose, the Bank is empowered toregulate the supply of money and credit andinternational credit and exchange operationsand to issue regulations governing money,
credit, finance and international exchange.
Such measures include, inter alia,  the
establishment of restrictions or limitations on
payments and transfers to or from Chile, as
well as related transactions, such as therequirement that deposits, investments orcredits from or intended for a foreign country
be subject to a reserve requirement.
(3) In addition to the horizontal measures in
Section I of Chile's Schedule of Commitmentswhich affect all sectors, a supplier of financial
services operating through a commercial
presence may be subject to an economic needstest.  That is to say, prior authorization to startup, suspend or terminate operations is requiredfrom the Banking and Financial Institutions
Supervision Department (SBIF), for banking
services, or from the Securities and InsuranceSupervision Department (SVS), for securitiesand insurance services.(3) Foreign investors who participate in the
financial services sector may transfer theircapital abroad two (2) years from the date of its
entry.TN/S/O/CHL
Page 19Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Authorization to supply financial services
through a commercial presence will be grantedin so far as the applicant undertakes to ensurethe proper functioning, integrity and stability
of the market, fulfils the legal requirements and
serves the national interest.
In addition, there may be non-discriminatory
restrictions or provisions regarding the type ofcommercial presence that must be adopted byfirms operating in the securities or insurance
sectors in Chile.
(a) Banking services:
a.(1) Core banking services:
Acceptance of deposits
(includes only current bank
accounts, sight acceptances,term acceptances, savingsaccounts, financialinstruments with
repurchase undertaking and
deposits for the issue ofbank guarantee vouchers)(1) Unbound
(2) Unbound
(3) Foreign banking institutions must be
companies legally constituted in their country
of origin and must put up the capital required
by Chilean law.(1) Unbound
(2) Unbound(3) NoneTN/S/O/CHL
Page 20Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Lending
(includes only current
loans, loans in letters ofcredit, endorsable mortgage
loans, the purchase of
financial instruments withresale undertaking, creditfor the issue of bankguarantee vouchers or other
types of financing, the issue
and negotiation of letters ofcredit for imports andexports, and the issue andconfirmation of stand-byletters of credit)Foreign banking institutions may only operate:
(i) Through shareholdings in Chilean banks
established as corporations;
(ii) by becoming established as a corporation in
Chile;
(iii) as branches of foreign corporations, in which
case the legal personality in the country oforigin is recognized . The capital considered
for the purposes of foreign bank branchoperations in Chile is that effectively investedin Chile, not that of the parent company.
Prior authorization from the SBIF is required
for the modification or transformation of thetype of commercial presence of a foreign bank
operating in Chile.
Purchase of publicly
offered securities (includesonly the purchase of bondsand letters of credit and the
underwriting thereof)No national or foreign natural or legal person
may acquire directly or through third partiesshares in a bank which, alone or added to theshares such a person already possesses,
represent more than 10 per cent of the bank's
capital without having first obtained theauthorization of the SBIF. Likewise, thepartners or shareholders of a financialinstitution may not transfer a percentage ofrights or shares in the company in excess of 10
per cent without having obtained authorization
from the SBIF.TN/S/O/CHL
Page 21Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Credit card issue and
operations (81133)(includes only credit cards
issued in Chile)
Discounting or acquisition
of bills of exchange and
promissory notes
Endorsement and guarantee
of third-party liabilities in
Chilean currency
Securities custody(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.
a.(2) Complementary banking
services:
Financial leasing (81120)
(These companies may
offer leasing contracts onlyfor goods acquired at theclient's request, i.e., theycannot acquire goods in
order to stock and offer
them for leasing.)(1) Unbound
(2) Unbound(3) In addition to the conditions specified above,
only domestic and foreign banking enterprisesestablished in Chile can provide financialleasing services.  To do so, they must establishsubsidiaries with their own separate legalpersonality, their own capital and exclusive
line of business, subject to prior authorization
from the SBIF.(1) Unbound
(2) Unbound(3) NoneTN/S/O/CHL
Page 22Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Financial leasing services are regarded as
complementary banking services and,consequently, the SBIF is empowered toextend or restrict the operation of the financial
leasing services which institutions may offer,
and the latter may only offer the servicesexpressly authorized by the SBIF.
(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.
Advisory and other
auxiliary financial services
(8133)
(includes only the services
indicated in the banking
section of this Schedule)(1) Unbound
(2) Unbound
(3)  In addition to the conditions specified above, in
Chile advisory and other auxiliary financialservices are regarded as complementary to theservices which can be provided by established
banks. Consequently, domestic and foreign
banks must set up subsidiaries with their owncapital in order to be able to provide theseservices and must obtain the appropriate
authorization from the SBIF.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 23Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
(b) Insurance and reinsurance services
1. In Chile, the insurance business is divided into two groups:  the first group comprises companies that insure goods and prope rty against the risk of loss or damage, while
the second comprises those that provide personal insurance or that guarantee, within or at the end of a certain term, a capital  sum, a paid-up policy or an income for the
insured person or his or her beneficiaries. An insurance compan y may not be constituted in such a way as to cover both categori es of risk.
2. Credit insurance companies, even though classified in the first group, must be established as corporations with the sole purp ose of covering this type of risk, i.e., loss of
or damage to the property of the insured person as a result of the non-payment of a money debt or loan; coverage of guarantee a nd fidelity risks is also permitted.
3. The Chilean insurance schedule does not include insurance related to the social security system.
Insurance:
Sale of direct life
insurance (does not
include insurance relatedto the social securitysystem) (81211)
Sale of direct general
insurance (8129, except
for 81299)TN/S/O/CHL
Page 24Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
(Excludes social security
institutions (ISAPRES),i.e., legal persons set up forthe purpose of providing
health benefits to persons
who opt to becomemembers and financed bythe statutory contribution ofa percentage of taxable
income established by law
or a higher amount, as thecase may be. It alsoexcludes the NationalHealth Fund (FONASA), apublic service financed by
the government and the
statutory contribution of apercentage of taxableincome established by law,which is jointly responsiblefor paying benefits under
the optional health scheme
which persons who are notmembers of an ISAPREmay join.)(1) Unbound
(2) Unbound(3) Insurance services can be provided only by
insurance corporations established in Chile forthe exclusive purpose of developing this line ofbusiness, i.e., either direct life insurance ordirect general insurance.  In the case of generalcredit insurance (81296), companies must be
established as insurance corporations with the
exclusive purpose of covering this type of risk.Insurance corporations can be legallyconstituted only in accordance with theprovisions of the Law on Corporations.
Insurance may be taken out either directly or
through insurance brokers who, in order toengage in such activities, must be enrolled inthe Register maintained by the Securities andInsurance Supervision Department (SVS) and
satisfy the legal requirements.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 25Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Insurance broking (81401) (1) Unbound
(2) Unbound(3) Must be enrolled in the SVS Register and fulfil
the requirements laid down by this body.  Onlylegal persons legally constituted in Chile forthis specific line of business may provide this
service.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
(1) Foreign reinsurance companies and foreign
reinsurance brokers must be enrolled in theSVS Register of foreign reinsurers and fulfilthe requirements laid down by this body.
(2) Unbound(3) Reinsurance services are provided by
reinsurance corporations established in Chile inaccordance with the Law on Corporations andauthorized by the SVS.  Insurance corporations
may also provide reinsurance services as a
complement to their insurance business if theirarticles of association so allow.
Reinsurance services may also be provided by
foreign reinsurers and foreign reinsurancebrokers enrolled in the Register maintained by
the SVS.(1) Premiums ceded under this heading are subject
to a tax of six per cent.
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 26Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
(c) Securities services:
1. Publicly offered securities may be traded by legal persons th e specific line of business of which is securities brokerage, ei ther as members of a stock exchange
(stockbrokers) or outside the exchange (securities agents). These institutions must be registered with the Securities and Insur ance Supervision Department (SVS).
However, only stockbrokers may trade shares or derivatives (subscription options) on the stock exchange. Non-share securities m ay be traded by stockbrokers or securities
agents registered with the SVS.
2. The purpose of financial portfolio management is to diversify investments, on behalf of third parties, over a range of instru ments. Such services may be provided by
securities traders (stockbrokers an d securities agents) for their clients as a complementary activity.
3. Risk rating services for publicly offered securities are provided  by rating agencies constituted for this sole purpose. Such agencies must be enrolled in the SVS Register of
Risk Rating Agencies and are inspected and controlled by this body. Responsibility for inspecting rating agencies offering risk  rating services for securities issued by
banks and financial institutions, however, falls to the Banking and Financial Institutions Supervision Department (SBIF).
4. Securities custody consists of the physical safe-keeping of stocks and shares and may be undertaken by securities intermediar ies (stockbrokers and securities agents) as an
activity complementary to their sole line of business.  The Chilean Schedule for the securities sector does not include service s offered by firms which simultaneously
undertake the custody, clearance and settlement of  securities (centralized securities depositories).
5. Financial advisory services, including financial advice on financing alternatives, investment appraisal, investment possibili ties and debt rescheduling strategies, may be
undertaken by securities intermediaries (stockbrokers and secur ities agents) as an activity complementary to their sole line of  business.
6. Securities services that may be provided by banking institutio ns, either directly or through subsidiaries, are listed in the banking services section of this Schedule and
excluded from the securities services section.TN/S/O/CHL
Page 27Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Broking of publicly offered
securities, except shares(81321)
(includes underwriting)(1) Unbound
(2) Unbound(3) Brokerage activities must be provided through
a corporation established in Chile and requireprior enrolment in the SVS Register ofstockbrokers and securities agents. In additionto the legal requirement concerning assets, theSVS may impose more stringent
non-discriminatory provisions regarding
economic solvency on intermediaries, takinginto account the nature of their operations, theamounts involved, the types of instrumentnegotiated and the category of intermediary to
which they apply.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.
Broking of publicly offered
shares in corporations(81321)
(includes underwriting)(1) Unbound
(2) Unbound(3) In order to trade on the stock exchange,
intermediaries (brokers) must be constituted ascorporations in Chile.  They must acquire ashare in their respective stock exchange and beaccepted as members of this exchange.  Prior
enrolment in the SVS Register of stockbrokers
and securities agents is required for brokerageactivities.(1) Unbound
(2) Unbound(3) None
In addition to the legal requirement concerning
assets, the SVS may impose more stringentnon-discriminatory requirements regardingeconomic solvency on intermediaries, takinginto account the nature of their operations, the
amounts involved, the types of instrument
negotiated and the category of intermediary towhich they apply.TN/S/O/CHL
Page 28Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
(4) Unbound, except as indicated in the horizontal
section.(4) Unbound, except as indicated in the horizontal
section.
Securities risk rating
(relates solely to rating or
giving an opinion on
publicly offered securities)(1) Unbound
(2) Unbound
(3) Companies must be established in Chile as a
company of persons. One of the specificrequirements is that not less than 60 per cent of
the company's capital must be held by the
principal partners (natural or legal persons inthis line of business holding a minimum of fiveper cent of the membership rights in the ratingagency).  Such companies must be enrolled inthe SVS Register of Risk Rating Agencies and
their rating board must consist of professionals
with a university degree or equivalent highereducation qualification and an unblemishedbusiness record, and the majority of whommust have had at least three years' work
experience in the economic and financial field.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 29Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Securities custody
undertaken by securitiesintermediaries (81319)(does not include services
offered by suppliers who
combine custody withsecurities clearance andsettlement (custodial
accounts).(1) Unbound
(2) Unbound(3) In order to provide securities custody services,
the intermediaries (brokers) must beconstituted as corporations in Chile.  Inaddition to the legal requirement concerningassets, the SVS may impose more stringentnon-discriminatory provisions regarding
economic solvency on the intermediaries,
taking into account the nature of theiroperations, the amounts involved, the types ofinstrument negotiated, and the category of
intermediary to which they apply.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
Financial consultancyservices provided by
securities intermediaries
(81332)
(financial advisory services
refer only to the securitiesservices included in this
Schedule)(1) Unbound
(2) Unbound
(3) Financial advisory services provided by
securities intermediaries established ascorporations in Chile require prior enrolment in
the SVS Register of stockbrokers and securities
agents.  In addition to the legal requirementconcerning assets, the SVS may impose morestringent non-discriminatory provisionsregarding economic solvency on theintermediaries, taking into account the nature
of their operations, the amounts involved, the
types of instrument negotiated and the categoryof intermediary to which they apply.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 30Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Portfolio management by
security intermediaries
(This does not under any
circumstances include thefollowing:  management ofmutual funds, foreign
capital investment funds,
investment funds orpension funds.)(1) Unbound
(2) Unbound(3) Portfolio management services provided by
security intermediaries established ascorporations in Chile require prior enrolment inthe SVS Register of stockbrokers and securitiesagents.  In addition to the legal requirementconcerning assets, the SVS may impose more
stringent non-discriminatory provisions
regarding economic solvency onintermediaries, taking into account the natureof their operations, the amounts involved, thetypes of instrument negotiated, and the
category of intermediary to which they apply.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
General deposit warehouses
(warrants)
(Corresponds to
merchandise warehousingservices accompanied by
the issue of a deposit
certificate and a chattelmortgage receipt.)(1) Unbound*
(2) Unbound(3) Only legal persons legally established in Chile
with the provision of warrant services as theirsole business.
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 31Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
TOURISM AND TRAVEL-
RELATED SERVICESThe purchase of foreign exchange by Chilean
nationals wishing to procure tourism services undermode of supply (2) is subject to foreign exchangecontrol measures laid down by the Council of theCentral Bank of Chile in accordance with itsstatutory powers.
Hotels and restaurantsHotel lodging(64110)(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.
Motel lodging
(64120)(1) Unbound*
(2) None
(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None
(3) None
(4) Unbound, except as indicated in the horizontal
section.
Apartment-hotels
(64193)(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 32Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Camping services
(64195)(1) Unbound*
(2) None(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None(4) Unbound, except as indicated in the horizontal
section.
Meal serving services with
full restaurant service(64210)(1) Unbound*
(2) None
(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None
(3) None
(4) Unbound, except as indicated in the horizontal
section.
Meal serving services in 
self-service facilities(64220)(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.
Caterer services
(64230)(1) Unbound*
(2) None
(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None
(3) None
(4) Unbound, except as indicated in the horizontal
section.
Bars without entertainment
(64310)(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 33Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Bars with entertainment
(64320)(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None
(4) Unbound, except as indicated in the horizontal
section.
Travel agency and tour 
operator services
Travel agencies and tour
operators(74710)(1) Unbound*
(2) None(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None(4) Unbound, except as indicated in the horizontal
section.
Tourist guide services
(74720)(1) Unbound*
(2) None(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) None(3) None(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 34Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
TRANSPORT SERVICES
A. Maritime transport
services (other than
domestic cabotage and
internal waterways
transport)
Passenger transportation
(7211)(1), (2) and (3) To fly the Chilean flag, a vessel
must be registered by a Chilean natural or
legal person, for which the Chilean legalperson must be constituted with domicileand actual principal place of business inChile, and its president, manager and mostof the directors or administrators must be
Chilean natural persons. Furthermore, over
50 per cent of its equity must belong toChilean natural or legal persons. For thesepurposes, a legal person with an equityinvestment in another legal owner of a vessel
must fulfil all of the above requirements.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
A vessel may be registered as jointly ownedif most of the co-owners are Chilean with
domicile and residence in Chile; theadministrators must be Chilean and themajority of the co-ownership rights mustbelong to Chilean natural or legal persons.For these purposes, a legal co-owner of a
vessel must fulfil all of the above
requirements to be considered Chilean.TN/S/O/CHL
Page 35Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Special vessels belonging to foreign natural
or legal persons domiciled in Chile may,under certain conditions, be registered in the
country.
Chile maintains its MFN exceptions.
(4) Unbound.(4) Unbound, except as indicated in the
horizontal section/Chile may grant
preferential subsidies to Chilean nationals.
Freight transportation (7212) (1), (2) and (3) To fly the Chilean flag, a vessel
must be registered by a Chilean natural orlegal person, for which the Chilean legal
person must be constituted with domicile and
actual principal place of business in Chile,and its president, manager and most of thedirectors or administrators must be Chileannatural persons. Furthermore, over 50 percent of its equity must belong to Chilean
natural or legal persons. For these purposes,
a legal person with an equity investment inanother legal owner of a vessel must fulfil all
of the above requirements.(1), (2) and (3) None/Chile may grant preferential
subsidies to Chilean nationals.
A vessel may be registered as jointly owned
if most of the co-owners are Chilean withdomicile and residence in Chile; the
administrators must be Chilean and the
majority of the co-ownership rights mustbelong to Chilean natural or legal persons.For these purposes, a legal co-owner of avessel must fulfil all of the above
requirements to be considered Chilean.TN/S/O/CHL
Page 36Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
Special vessels belonging to foreign natural
or legal persons domiciled in Chile may,under certain conditions, be registered in
the country.
There are restrictions for vessels flying
foreign flags on the routes to and from Chileand Ecuador (hydro carbons), Mexico
(vehicles, parts and components), Brazil,
Bolivia and Paraguay.
Chile maintains its MFN exceptions.
(4) Unbound. (4) Unbound, except as indicated in the
horizontal section/Chile may grant
preferential subsidies to Chilean nationals.
AUXILIARY AIR 
TRANSPORT SERVICES
1- Opening of offices (1) Unbound*
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
2- Issue and sale of air-
transport fares and tickets(1) Unbound*
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.TN/S/O/CHL
Page 37Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatm ent Additional commitments
3- Computer reservation
systems(1) None
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) None
(2) Unbound(3) None
(4) Unbound, except as indicated in the horizontal
section.
4- Ground operation of support
equipment(1) Unbound*
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.(1) Unbound*
(2) Unbound(3) None(4) Unbound, except as indicated in the horizontal
section.
5- Aircraft maintenance (1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except as indicated in the horizontal
section.
_______________TN/S/O/CHL
Page 38
REFERENCE PAPER
Scope
The following are definitions and principles relating to the regulatory framework for basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential fac ilities mean facilitie s of a public telecommunications tr ansport network or service that:
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or tec hnically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of participation
(having regard to price and supply) in the relevant market for basic telecommunications services as a
result of:
(a) control over essential facilities;  or(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:(a) engaging in anti-competitive cross-subsidization;(b) using information obtained from competitors with anti-competitive results;  and(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commerc ially relevant in formation which is
necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of anotherTN/S/O/CHL
Page 39
supplier and to access services provided by another supplier, where specific commitments are
undertaken.
2.2 Interconnection to be ensured
Interconnection with a major supplier shall be ensured at any technically feasible point in the
network.  Such interconnection shall be provided:
(a) under non-discriminatory terms, conditi ons (including techni cal standards and
specifications) and rates and of a quality no less favourable than that provided for its
own like services or for like services of non-affiliated service suppliers or for itssubsidiaries or other affiliates;
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates that are transparent, reasonable, having regardto economic feas ibility, and sufficiently unbundled so that the supplier need not pay
for network components or facilities that it does not require for the service to beprovided;  and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of necessaryadditional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier shall be made publicly
available.
2.4 Transparency of interconnection arrangements
A major supplier shall make either its interconnection agreements or a reference
interconnection offer publicly available.
2.5 Interconnection:  Dispute settlement
A service supplier requesting interconnection with a major supplier shall have recourse,
either:
(a) at any time or(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5
below, to resolve disputes regarding appropriate terms, conditions and rates for interconnection withina reasonable period of time, to the extent that  these have not been established previously.TN/S/O/CHL
Page 40
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations shall not be regarded as anti-competitive per se , provided that they are
administered in a transparent, non-discriminatory and competitiv ely neutral manner and are not more
burdensome than necessary for the kind of universal service defined by the Member.
4. Public availability of licensing criteria
Where a licence is required, the following shall be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence, and
(b) the terms and conditions of individual licences.The reasons for the denial of a licence shall be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of and procedures used by regulators shall be impartialwith respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, shall be carried out in an objective, timely, transparent and non-discriminatorymanner. The current state of allocated frequency bands shall be made publicly available, but detailedidentification of frequencies allocated for specific government uses is not required.TN/S/O/CHL
Page 41CHILE - FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or subsector Description of measure indicating
its inconsistency with Article IICountries to which the
measure appliesIntended duration Conditions  creating the need for
the exemption
All Measures establishing dispute-
settlement procedures contained inexisting or future bilateral investment
protection treaties.All.  Chile currently has
agreements with Germany,
Switzerland and Spain.Subject to the duration of the
treaty concernedPromotion of investment
International maritime
freight transportationReciprocal measures concerning
access to freight by Chilean vessels.All Indefinite Need to ensure market access
International maritime
freight transportationPursuant to the 1974 bilateral
convention, all freight between thetwo countries must be carried onvessels flying the Chilean or Brazilian
flags.Brazil Subject to the term of the
agreementPromotion of reciprocal trade
Maritime transport Rates, commissions or shares relating
to maritime freight to or from Chilean
ports and other revenue from services
to vessels and cargo in national orforeign ports necessary for thepurposes of such transportation aresubject to a tax on the total amount ofrevenue derived from these
operations.All Indefinite Need to ensure market access
This tax is not imposed on revenue
generated by foreign vessels provided
that, in their countries of registration,there is no similar tax or equivalent orsimilar exemptions are granted to
Chilean shipping enterprises.
If a vessel is operated by or belongs to
a shipping enterprise domiciled in acountry that is not the country of
registration, the requirement of
reciprocity applies to each country.TN/S/O/CHL
Page  42Sector or subsector Description of measure indicating
its inconsistency with Article IICountries to which the
measure appliesIntended duration Conditions  creating the need for
the exemption
Maritime transport.Coastal waters
(cabotage)Only for freight exceeding 900 metric
tonnes.  Specified foreign suppliers
may be excluded from tendering.All Indefinite Need to ensure market access
International land
transport (freight and
passengers)National treatment is granted to
suppliers from countries which havesigned the 1977 International Land
Transport Convention.Argentina, Bolivia, Brazil,
Paraguay, Peru and UruguaySubject to the term of the
agreementPromotion of regional integration
Audiovisual National treatment is granted for co-
produced cinematographic works in
accordance with existing or futurecinematographic co-productionagreements.All.  Only one agreement, with
France, exists at present.Subject to the term of the
agreement.Promotion of artistic and technical
works.
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