WT/REG423/2  
 
10 June 2022 
(22-4096) Page: 1/3 
Committee on Regional Trade Agreements  Original: English  
 
ASSOCIATION AGREEMENT BETWEEN THE UNITED  KINGDOM AND CHILE,  
GOODS  AND SERVICES   
QUESTIONS AND REPLIES  
 The following communication, dated 7 June 2022, is being circulated at the request of the 
delegations of  the United Kingdom and Chile. 
 
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Question s from Canada  
 
1.1.  Paragraph 85 of the WT/REG164/7: It is stated that "[p]ublic entities can award 
contracts by open, selective, or other procedures , as long as they are awarded in a 
non-discriminatory manner (Articles 143 -145)  [emphasis added]."  
a. Could Chile and the UK please specify in what circumstances are contracts 
awarded in a selective manner?  
Joint response from the Parties  
 
 Selective tendering procedures are those procedures whereby, consistent with Article 144 and 
other relevant provisions of Title IV, only suppliers satisfying qualification requirements established 
by the entities are invited to submit a tender. In selective tendering, entities may limit the numbe r 
of qualified suppliers they will invite to tender, consistent with the efficient operation of the 
procurement process, provided that they select the maximum number of domestic suppliers and 
suppliers of the other Party, and that they make the selection i n a fair and non -discriminatory 
manner and on the basis of the criteria indicated in the notice of intended procurement or in tender 
documents.  
 
b. Could Chile and the UK please specify what is meant by "other procedures" in the 
context of contract awards?  
Joint response from the Parties  
 
 Provided that the tendering procedure is not used to avoid maximum possible competition or 
to protect domestic suppliers, entities shall be allowed to award contracts by means other than an 
open or selective tendering procedure in the following circumstances and subject to the following 
conditions, where applicable: when no suitable tenders or request to participate have been submitted 
in response to a prior procurement, on condition that the requirements of t he initial procurement 
are not substantially modified; suppliers requesting to participate in a given intended procurement 
who are not on the permanent list of qualified suppliers shall be given the possibility to participate 
in the procurement by presenti ng the equivalent certifications and other means of proof requested 
from suppliers who are on the list. When an entity operating in the utilities sector uses a notice on 
the existence of a permanent list as a notice of intended procurement, as provided in Article 147(7), 
suppliers requesting to participate who are not on the permanent list of qualified suppliers shall also 
be considered for the procurement, provided there is sufficient time to complete the qualification 
procedure; in this event, the procuri ng entity shall promptly start procedures for qualification and 
the process of, and the time required for, qualifying suppliers shall not be used in order to keep 
suppliers of other Parties off the suppliers' list . 
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  1.2.  Paragraph 4.14: The Factual Presentation  states that "the Agreement incorporates 
without modifications provisions on movement of natural persons as set out in Chapter I 
of the EU -Chile FTA (Article 101)."  
 Article 101 Movement of natural persons of the EU -Chile FTA provides that "two 
years after  the entry into force of this Agreement, the Parties shall review the rules and 
conditions applicable to movement of natural persons (mode 4) with a view to achieving 
further liberalisation." The EU -Chile FTA entered into force in February 2003.  
 
a. Can Part ies confirm whether the Parties to the Agreement conducted a review of 
their respective domestic regimes pertaining to the movement of natural persons 
two years after entry into force? Did the UK, as a Member State of the EU in 2005, 
participate in such a review?  
Response from Chile  
 
 After the entry into force of the Chile -EU Association Agreement, the Parties explored the 
possibility of further liberalising the movement of natural persons, based on Article 101.   
 
Response from the United Kingdom  
 
 As an EU Member State, the UK would have participated in any discussions in relation to the 
Chile-EU Association Agreement.  
 
b. If such a review was conducted, was any further liberalization achieved vis-à-vis 
the UK and Chile under the EU -Chile FTA as a result?  
Joint response from the Parties  
 
 No further liberalization was achieved between Chile and the EU, including the UK.  
 
c. Have the Parties discussed or established a process for the future review of 
domestic regimes pertaining to the movement of natural persons under the new 
Association agreement between the United Kingdom and Chile?  
Joint response from the Parties  
 
 No. The Association Agreement was agreed mutatis mutandis. The only review commitments 
which were retained related to Article 74 and  Article 201.  
 
d. If Parties mutually agree to further liberalization in this context, how will such 
commitments be reflected in the Association agreement between the United 
Kingdom and Chile or associated instruments?  
Joint response from the Parties  
 
 Further liberalization, if agreed, could be achieved through amendment to the Annex of the 
Association Agreement between Chile and the United Kingdom.  
 
1.3.  Paragraph 4.36 of the factual presentation states: "In addition to inc orporating 
commitments under the EU -Chile FTA, the incorporated FTA schedule replicates the UK's 
commitments for hospital and social services with full commitments for consumption 
abroad and commercial presence. Unlike its GATS commitments, the UK has sche duled 
"unbound" for all modes of supply for other human health services (CPC 9319)."  
 Could the UK provide additional information on the differences between its GATS 
commitments and commitments under the EU -Chile FTA for other human health services? 
What i s the UK 's rationale for these changes?  
 
 
 
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  Response from the United Kingdom  
 
 The UK's commitments for this sub -sector are the same under the GATS and the UK -Chile 
agreement.  
 
 In the UK -Chile agreement, other human health services (CPC 9319) are included in the 
schedule and the UK is then unbound for all modes of supply for other human health services (CPC 
9319).  In the UK GATS schedule, this sub -sector is not included in the schedule of commitments. 
The summary table of UK commitments in the Fact ual Presentation correctly summarizes the position 
as being the same.   
 
1.4.  Paragraph 4.38: The factual presentation states: "In addition to incorporating 
commitments under the EU -Chile FTA, the coverage and level of liberalization for all 
modes of supply for entertainment, news and press agency, and sporting and other 
recreation services under the incorporated Agreement are the same as under the GATS. 
Unlike its GATS commitments, the UK has scheduled "unbound" for all modes of supply 
for library, archives, mus eums and other cultural services (CPC 963)."  
 Could the UK provide additional information on the differences between its GATS 
commitments and commitments under the EU -Chile FTA for library, archives, museums 
and other cultural services? What is the UK 's rationale for these changes?  
 
Response from the United Kingdom  
 
 The UK 's commitments for this sub -sector are the same under the GATS and the UK -Chile 
agreement.  
 
 In the UK -Chile agreement, libraries, archives, museums and other cultural services (CPC 963) 
are included in the schedule and the UK is then unbound for all modes of supply for libraries, 
archives, museums and other cultural services (CPC 963). In the UK GATS schedule, this sub -sector 
is not included in the schedule of commitments. The s ummary table of UK commitments in the 
Factual Presentation correctly summari zes the position as being the same.  
 
Question from Japan  
 
Provisions on trade in goods  
 
Regulatory provisions on trade in goods  
 
Safeguard mechanisms  
 
Global safeguards  
 
1.5.  Paragra phs 3.47 and 3.48: Please explain the consistency between the measure 
taken in accordance with paragraph 6 of Article 92 of Association agreement between the 
United Kingdom and Chile, which is incorporated from the EU -Chile Agreement, and 
Article  2.2 of th e WTO SG Agreement.  
Joint response from the Parties  
 
 The UK and Chile retain the ability to apply measures pursuant to Article XIX of the GATT and 
the WTO Safeguards Agreement.  
 
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