WT/TPR/S/451 /Rev.1  
22 January 2024 
(24-0449) Page: 1/174 
Trade Policy Review Body   
 
  
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
CHILE 
Revision  
This report, prepared for the sixth Trade Policy Review of Chile, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Chile on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Angelo Silvy, 
Martha  Lara (Tel. 022 739 6033) and Ana Cristina Molina (Tel.  022 739 6060) . 
 
Document WT/TPR/G/451 contains the policy statement submitted by Chile.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in Spanish.  
  WT/TPR/S/451/Rev.1  
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Economic structure and trends  ................................ ................................ ...................  13 
1.2   Fiscal policy  ................................ ................................ ................................ .............  16 
1.3   Monetary and exchange rate policies  ................................ ................................ ...........  21 
1.4   Balance of payments  ................................ ................................ ................................ . 24 
1.5   Merchandise trade and investment flows  ................................ ................................ ...... 25 
1.5.1   Composition of trade  ................................ ................................ ..............................  25 
1.5.2   Direction of trade  ................................ ................................ ................................ ... 26 
1.5.3   Trade in services  ................................ ................................ ................................ ... 28 
1.5.4   Foreign direct investment ................................ ................................ ........................  29 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  34 
2.1   General framework  ................................ ................................ ................................ ... 34 
2.2   Trade policy formulation and objectives  ................................ ................................ ....... 36 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  37 
2.3.1   WTO ................................ ................................ ................................ ....................  37 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 38 
2.3.2.1    Regional agreements  ................................ ................................ ...........................  38 
2.3.2.1.1    The Americas  ................................ ................................ ................................ ... 38 
2.3.2.1.2    Asia and the Pacific  ................................ ................................ ...........................  39 
2.3.2.1.3    Europe  ................................ ................................ ................................ ............  40 
2.3.2.2    Preferential arrangements  ................................ ................................ ....................  40 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  40 
2.4   Investment regime  ................................ ................................ ................................ ... 41 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  46 
3.1   Measures directly affecting imports  ................................ ................................ .............  46 
3.1.1   Customs procedures, valuation and requirements  ................................ .......................  46 
3.1.1.1    Customs procedures and requirements  ................................ ................................ ... 46 
3.1.1.2    Trade facilitation  ................................ ................................ ................................ . 49 
3.1.1.3    Customs valuation  ................................ ................................ ...............................  50 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 51 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  52 
3.1.3.1    Structure  ................................ ................................ ................................ ...........  52 
3.1.3.2    Price band system  ................................ ................................ ...............................  54 
3.1.3.3    Tariff bindings  ................................ ................................ ................................ .... 55 
3.1.3.4    Tariff quotas  ................................ ................................ ................................ ....... 56 
3.1.3.5    Tariff concessions  ................................ ................................ ................................  56 
3.1.3.6   Preferential tariffs  ................................ ................................ ...............................  57 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  59 WT/TPR/S/451/Rev.1  
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  3.1.5   Import prohibitions, restrictions and licensing  ................................ ............................  60 
3.1.6   Anti-dumping, countervailing and safeguard measures  ................................ ................  61 
3.1.6.1    Legal framework  ................................ ................................ ................................ . 61 
3.1.6.2    Anti-dumping and countervailing measures  ................................ .............................  62 
3.1.6.3    Safeguard measures  ................................ ................................ ............................  63 
3.1.7   Other measures affecting imports  ................................ ................................ ............  64 
3.2   Measures directly aff ecting exports  ................................ ................................ .............  64 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 64 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................  65 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  65 
3.2.4   Export support and promotion  ................................ ................................ .................  65 
3.2.4.1    Export support  ................................ ................................ ................................ .... 65 
3.2.4.2    Export promotion  ................................ ................................ ................................  66 
3.2.5   Export finance, insurance, and guarantees  ................................ ................................  68 
3.3   Measures affecting production and trade  ................................ ................................ ...... 69 
3.3.1   Incentives  ................................ ................................ ................................ ............  69 
3.3.1.1    Support for remote areas  ................................ ................................ .....................  70 
3.3.1.2    Business support  ................................ ................................ ................................ . 71 
3.3.2   Standards and other technical requirements  ................................ ..............................  74 
3.3.2.1    Legal and institutional framework  ................................ ................................ ..........  74 
3.3.2.2    Technical regulations  ................................ ................................ ...........................  75 
3.3.2.3    Standards  ................................ ................................ ................................ ..........  77 
3.3.2.4    Conformity assessment and certification  ................................ ................................ . 79 
3.3.2.5    Accreditation  ................................ ................................ ................................ ...... 81 
3.3.2.6    Metrology  ................................ ................................ ................................ ..........  82 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ ....... 83 
3.3.4   Competition policy and price controls  ................................ ................................ ........  86 
3.3.4.1    Legal and institutional framework  ................................ ................................ ..........  86 
3.3.4.2    Enforcement  ................................ ................................ ................................ ....... 89 
3.3.4.3    Price control  ................................ ................................ ................................ ....... 91 
3.3.5   State trading, state -owned enterprises and privatization ................................ ..............  92 
3.3.5.1    State trading  ................................ ................................ ................................ ...... 92 
3.3.5.2    State -owned enterprises  ................................ ................................ ......................  92 
3.3.6   Government procurement  ................................ ................................ .......................  94 
3.3.6.1    Overview  ................................ ................................ ................................ ...........  94 
3.3.6.2    Legal framework and procedures  ................................ ................................ ...........  97 
3.3.7   Intellectual property rights  ................................ ................................ ....................  102 
3.3.7.1    Overview  ................................ ................................ ................................ .........  102 
3.3.7.2    Overall legal framework  ................................ ................................ .....................  105 
3.3.7.3    Industrial property  ................................ ................................ ............................  106 WT/TPR/S/451/Rev.1  
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  3.3.7.3.1    Legislation  ................................ ................................ ................................ ..... 106 
3.3.7.3.2    Patents, utility models and industrial designs  ................................ ......................  108 
3.3.7.3.3   Layout designs or topographies of integrated circuits  ................................ ...........  111 
3.3.7.3.4    Trademarks  ................................ ................................ ................................ ... 111 
3.3.7.3.5    Geographical indications (GI) and appellations of origin (AO)  ................................  112 
3.3.7.3.6    New plant varieties  ................................ ................................ .........................  112 
3.3.7.3.7    Undisclosed information and trade secrets  ................................ .........................  113 
3.3.7.4    Copyright  ................................ ................................ ................................ .........  113 
3.3.7.5    Enforcement  ................................ ................................ ................................ ..... 115 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  118  
4.1   Agriculture, forestry and fisheries  ................................ ................................ .............  118 
4.1.1   Agriculture and forestry  ................................ ................................ ........................  118 
4.1.1.1    Main features  ................................ ................................ ................................ ... 118 
4.1.1.2    Measures affecting imports and exports  ................................ ................................  120 
4.1.1.2.1    Measures affecting imports  ................................ ................................ ..............  120 
4.1.1.2.2    Measures affecting exports  ................................ ................................ ..............  121 
4.1.1.3    Domestic support measures  ................................ ................................ ................  122 
4.1.2   Fisheries  ................................ ................................ ................................ .............  123 
4.2   Mining and energy  ................................ ................................ ................................ .. 127 
4.2.1   Mining  ................................ ................................ ................................ ................  127 
4.2.1.1    Main features  ................................ ................................ ................................ ... 127 
4.2.1.2    Legal and institutional framework  ................................ ................................ ........  129 
4.2.1.3    Mining regime  ................................ ................................ ................................ .. 130 
4.2.2   Energy  ................................ ................................ ................................ ...............  132 
4.2.2.1    Overview  ................................ ................................ ................................ .........  132 
4.2.2.2    Electricity  ................................ ................................ ................................ .........  133 
4.2.2.3    Hydrocarbons  ................................ ................................ ................................ ... 136 
4.3   Manufacturing  ................................ ................................ ................................ ........  138 
4.4   Services  ................................ ................................ ................................ ................  139 
4.4.1   Financial services  ................................ ................................ ................................ . 139 
4.4.1.1    General characteristics and regulatory and prudential framework  .............................  139 
4.4.1.2    Banking sector  ................................ ................................ ................................ .. 144 
4.4.1.2.1    General characteristics  ................................ ................................ ....................  144 
4.4.1.2.2    Legal and institutional framework  ................................ ................................ ..... 145 
4.4.1.3    Insurance  ................................ ................................ ................................ ........  148 
4.4.1.3.1    General characteristics  ................................ ................................ ....................  148 
4.4.1.3.2    Legal and institutional framework  ................................ ................................ ..... 148 
4.4.1.4    Pension funds  ................................ ................................ ................................ ... 151 
4.4.1.4.1    General characteristics  ................................ ................................ ....................  151 
4.4.1.4.2    Legal and institutional framework  ................................ ................................ ..... 151 WT/TPR/S/451/Rev.1  
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  4.4.2   Telecommunications  ................................ ................................ .............................  152 
4.4.2.1    General characteristics  ................................ ................................ .......................  152 
4.4.2.2    Legal and institutional frame work ................................ ................................ ........  153 
4.4.3   Transport  ................................ ................................ ................................ ...........  155 
4.4.3.1    Air transport  ................................ ................................ ................................ ..... 155 
4.4.3.2    Maritime transport  ................................ ................................ ............................  158 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 161  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main product, 2015 and 2022  ................................ ...............  26 
Chart 1.2 Merchandise trade by trading partner, 2015 and 2022  ................................ .............  27 
Chart 3.1 TDLC: contentious proceedings by category of conduct at 30  April 2022 .....................  91 
Chart 4.1 Trade, GDP and employment in the agricultural sector, 2015 –22 ............................  118 
Chart 4.2 Institutional framework of the agricultural sector  ................................ ..................  120 
Chart 4.3 Mineral product exports and copper prices, 2015 -22 ................................ .............  128 
 
TABLES  
 
Table 1.1 Main economic indicators, 2015 -22 ................................ ................................ ....... 14 
Table 1.2 Non -financial operations of the Central Government, 2015 -22 ................................ .. 19 
Table 1.3 Main monetary indicators, 2015 -22 ................................ ................................ ....... 22 
Table 1.4 Balance of payments, 2015 -22 ................................ ................................ .............  24 
Table 1.5 Trade in services, 2015 -22 ................................ ................................ ..................  28 
Table 1.6 FDI flows by economic sector, 2015 -21 ................................ ................................ . 29 
Table 1.7 FDI stock by economic sector, 2015 -21 ................................ ................................ . 30 
Table 1.8 FDI flows by country of origin, 2015 -21 ................................ ................................ . 31 
Table 1.9 FDI stock by country of origin, 2015 -21 ................................ ................................  32 
Table 2.1 Secto rs in which FDI is restricted, 2023  ................................ ................................ . 42 
Table 3.1 Goods subject to prior checks before being clea red to enter Chile, 2023  .....................  47 
Table 3.2 Structure of MFN tariffs, 2014 and 2023  ................................ ................................  52 
Table 3.3 Summary analysis of the MFN tariff, 2023a ................................ ............................  53 
Table 3.4 Products subject to price bands, 2023  ................................ ................................ ... 55 
Table 3.5 Summary analysis of preferential tariffs, 2021  ................................ ........................  58 
Table 3.6 Additional taxes, June 2023  ................................ ................................ .................  60 
Table 3.7 ProChile: Funds awarded through competitions in 2022  ................................ ...........  67 
Table 3.8 COBEX: beneficiary companies, percentages and maximum amounts guaranteed  ........  68 
Table 3.9 CORFO foreign trade guarantee operations (COBEX), 2015 -22 ................................ .. 69 
Table 3.10 Amounts disbursed by CORFO departments, 2022  ................................ .................  72 
Table 3.11 FOGAPE programmes: percentages and maximum amounts guaranteed according to 
the value of companies' sales, number o f operations and amounts financed  .............................  73 WT/TPR/S/451/Rev.1  
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  Table 3.12 FNE: enforcement actions, 2015 -23 ................................ ................................ .... 90 
Table 3.13 FNE: Annual statistics on economic mergers, 2017 –23 ................................ ...........  90 
Table 3.14 List of state -owned enterprises, June  2023 ................................ ..........................  93 
Table 3.15 Amounts transacted by government procurement purchasing procedure, 2015 -22 ..... 95 
Table 3.16 Amounts transacted by foreign suppliers, 2015 -22 ................................ ................  96 
Table 3.17 Government procurement thresholds by agreement, 2023  ................................ ...... 96 
Table 3.18 WIPO treaties to which Chile is party, 2023  ................................ ........................  102 
Table 3.19 Intellectual property rights and administering institutions  ................................ ..... 103 
Table 3.20 Applications for industrial property rights received by INAPI, 2015 –22 ...................  110 
Table 4.1 Main indicators in the fisheries sector, 2015 –22 ................................ ....................  124 
Table 4.2 Types of fisheries regimes, 2022  ................................ ................................ ........  125 
Table 4.3 Main legal instruments regulating the mining sector  ................................ ..............  129 
Table 4.4 Manufacturing sector GDP, 2015 -22 ................................ ................................ .... 138 
Table 4.5 Telecommunications indicators, 2014 and 2022  ................................ ....................  152 
Table 4.6 Main legal instruments regulating the air transport sector  ................................ ...... 155 
Table 4.7 Main legal instruments on maritime transport and ports  ................................ .........  158 
 
BOXES  
 
Box 1.1 Chile: legal and administrative tax - and labour -related measures in the context of the 
COVID -19 pandemic, 2020 -21 ................................ ................................ ...........................  17 
Box 2.1 Legislative process in Chile, 2023  ................................ ................................ ...........  35 
Box 3.1 Principal laws governing the sanitary and phytosanitary system, 2023  .........................  83 
Box 3.2 M ain points of Law No.  21.355  ................................ ................................ .............  106 
 
APPENDIX TABLES  
 
Table  A1.1 Merchandise exports by HS section, 2015 -22 ................................ .....................  161 
Table A1. 2 Merchandise imports by HS section, 2015 -22 ................................ .....................  163 
Table A1.3 Merchandise exports by trading partner, 2015 -22 ................................ ...............  165 
Table A1.4 Merchandise imports by trading partner, 2015 -22 ................................ ...............  166 
Table  A2.1 Chile's most recent notifications to the WTO, July 2023 ................................ ........  167 
Table  A2.2 Chile's current trade agreements, July 2023  ................................ .......................  169 
Table  A3.1 Summary analysis of the MFN tariff excluding ad valorem  equivalents,  2023 ...........  170 
Table  A4.1 Main agricultural exports and imports, 2015 -22 ................................ ..................  171 
Table  A4.2 Imports of products subject to price bands,  2015-22 ................................ ...........  172 
Table  A4.3 List of agricultural support programmes notified to the WTO,  2022 ........................  173 
Table  A4.4 Air rights agreements signed by Chile during the 2015 -22 period  ..........................  174 
 
 
  WT/TPR/S/451/Rev.1  
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  SUMMARY  
1. Since  its last review in 2015, Chile has continued to pursue a stable trade policy, based on 
open trade, both at the multilateral and regional levels. At the same time, and without deviating 
from its basic principles of openness, Chile's trade policy has been a dapting to current global 
challenges, such as technological, energy and environmental challenges. This is reflected in the 
reforms made to its legislation and regulations, as well as the introduction of the institutional and 
procedural changes needed to im plement these reforms.  
2. The Chilean economy has benefited greatly from its openness and integration into the world 
economy. Chile's GDP per capita is one of the highest in Latin America, reaching USD 15,164 in  2022. 
The economy grew steadily between 2014 an d 2019, with an average annual GDP growth rate of  2%. 
As was the case for the rest of the world, the Chilean economy was hit hard by the COVID -19 
pandemic  in 2020, which caused GDP to shrink by 6.1%. However, Chile's economy quickly returned 
to growth and, in 2021, real GDP was up 11.7%, exceeding pre -pandemic levels. This was partly 
the result of substantial fiscal transfers and the consequent uptick in domestic demand. In 2022, 
GDP growth returned to the average seen between 2014 and 2018, alth ough inflation accelerated. 
The authorities responded by adopting a contractionary monetary and fiscal policy to restore 
macroeconomic balance and thus address the hike in inflation. In the light of the impact of these 
policies, real GDP is expected to con tract slightly in 2023.  
3. For more than a decade, Chile has been pursuing a fiscal policy aimed at achieving structural 
balance and fiscal stability in the medium term. This policy resulted in moderate central government 
deficits in the period 2015 -19, of be tween 1.7% and 2.9% of GDP. A tax reform was approved 
in 2020, which included higher maximum effective tax rates. At the same time, the fiscal accounts 
deteriorated due to the adoption of support measures to mitigate the effects of the COVID -19 
pandemic, w orth an estimated USD 40 billion between 2020 and 2021, which, together with a fall in 
receipts due to the slowdown in economic activity, pushed the central government deficit up to 7.3% 
of GDP in 2020 and to 7.7% of GDP in 2021. In 2022, Chile returned to  the path of fiscal 
consolidation; the spending cuts, which were accompanied by higher revenues, produced a central 
government surplus of 1.1% of GDP. The proposed new tax reform was introduced in 2023, which 
sets out, inter alia , to raise taxes, combat ta x avoidance and evasion and informality, and increase 
fiscal efficiency.  
4. Chile is implementing a monetary policy strategy with medium -term inflation targets and a 
flexible exchange rate policy. The inflation target projected over a two -year horizon is 3%. This 
strategy was not modified during the review period. A stable or moderately contractionary policy 
was adopted between 2015 and 2019. However, as of March 2020, the policy took an accommodative 
direction to counter the impact of the pandemic on the econ omy. This pushed up inflation and led 
to 11 successive increases in the monetary policy rate between July 2021 and October 2022. 
Consequently, after peaking at 14.1% in August 2022, inflation fell to 6.5% year -on-year in 
July 2023.  
5. The balance of trade in goods was in surplus in each year of the period under review. This 
trade surplus trended upwards between 2015 and 2017, before declining in 2018 and 2019, mainly 
due to lower copper exports. The larger surplus recorded in 2020 (USD 18,917 million) was prim arily 
the result of the sharp drop in imports caused by the COVID -19 pandemic and the increase in 
exports . In 2022, the rise in imports of goods shrank the trade surplus from USD 10,470 million in 
2021 to USD 3,807 million. Chile has traditionally recorded  a deficit in the balances of services and 
income. The deficit in the balance of services narrowed  in 2020, but grew again in 2021 and 2022. 
As a consequence, the balance -of-payments current account recorded a deficit in each year of the 
period under revie w. The current account deficit fell to USD 4,952 million in 2020, but rose to 
USD 23,193  million (7.5% of GDP) in 2021 and to USD 27,102 million (9.0% of GDP) in 2022, 
reflecting the growth in imports.  
6. Imports of goods grew faster (68.7% in USD) than expor ts (56.9%) during the period 
2015-22. Goods exports mainly consist of agricultural products (wine, fruit, salmon and other fish, 
and forestry products), and primary and processed mining products. Mining products and base 
metals accounted for 52.7% of goods  exports in 2022, and were concentrated in copper ore and 
refined copper, which together made up 45.3% of exports. The share of lithium exports in total 
exports grew from  1.3% in 2021 to 8.2% in 2022. Agricultural products (WTO classification) 
accounted fo r 21.9% of total exports in 2022. Among imports, the leading category was machinery WT/TPR/S/451/Rev.1  
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  and transport equipment, accounting for 30.4% of the total in 2022. The share of mineral products 
in total imports rose to 23.2% in 2022, mainly due to the increase in fuel  prices. The main export 
markets in 2022 were China (39.4% of the total), the United States (13.9%), followed by the 
European Union (7.8%) and Japan (7.6%). China continued to be the main source of imports, with 
25.3% of the total in 2022, followed by the United States (20.9%), the European Union (11.1%), 
Brazil and Argentina  
7. Foreign direct investment (FDI) plays an extremely important role in the Chilean economy. 
During the period under review, Chile continued to receive large FDI flows. According to the 
information provided by the authorities, FDI inflows to Chile between 2015 and 2021 amounted to 
USD 80,345 million, and were distributed as follows: the electricity, gas and water sector (36.4%), 
the mining sector (20.2%), the financial services sector (19. 3%) and the commerce sector (7.5%) 
Chile was also a dynamic investor abroad, with outward FDI of around USD 59,613 million between 
2015 and 2021.  
8. Chile is a founding Member of the WTO and grants at least most -favoured nation treatment 
to all its trading pa rtners. Chile's trade policy has been reviewed five times within the GATT/WTO 
framework, most recently in 2015. During the review period, Chile participated actively in the work 
and discussions of the WTO, as well as various joint initiatives, including th e Joint Initiative on 
Investment Facilitation for Development, which it co -coordinates. It also co -sponsored the 
Statement on Trade and Environmental Sustainability, and participated in the Informal Working 
Groups on Micro, Small and Medium -Sized Enterpris es (MSMEs) and on Trade and Gender. Chile is 
not a party to the Information Technology Agreement or the Agreement on Government 
Procurement, although it has the status of observer in the Committee on Government Procurement. 
The Agreement on Fisheries Subsi dies was in the process of domestic ratification at the time of 
writing this report.  
9. During the period under review, Chile regularly submitted notifications under the various 
WTO Agreements. As of July 2023, it was almost entirely up to date, with a few ex ceptions. Since 
its last review, Chile has not taken part as a complainant or respondent in any case under the 
WTO dispute settlement mechanism, although it did participate as a third party in six cases. Chile is 
part of the Multi Party Interim Appeal Arbi tration Arrangement.  
10. Trade policy is formulated by the executive branch. During the review period, institutional 
changes were made in this area, including the creation of the Under -Secretariat for International 
Economic Relations (SUBREI), which took over responsibility for implementing and coordinating 
policy in the sphere of international economic relations from the former Directorate General of 
International Economic Relations (DIRECON). The General Directorate for Export Promotion 
(ProChile), attached t o SUBREI, was also established.  
11. Chile continues to pursue an open trade strategy based on both multilateralism and 
regionalism, which it considers complementary to multilateral initiatives. Chile has 32 trade 
agreements covering more than 60 economies and,  in some cases, that go beyond market 
liberalization and include initiatives focused on issues such as digital markets, e -commerce, regional 
and global value chains, the environment, gender and MSMEs. During the review period, Chile 
concluded new agreement s, initiated negotiations to extend and update existing agreements, and 
liaised with countries with a view to entering into new trade agreements.  
12. Chile's current FDI policy seeks to increase incoming investment flows and reduce their 
concentration in the p rimary sector. The legal and institutional framework for foreign investment 
was modified during the review period, including the enactment of the law creating the Foreign 
Investment Promotion Agency (InvestChile). FDI does not require prior authorization a nd there are 
no restrictions on foreign equity participation in the vast majority of economic sectors. The foreign 
investment regime guarantees foreign investors the option to remit abroad the capital transferred 
and net profits generated by their investme nts. In addition, an exemption from VAT is granted for 
the import of capital goods intended for investment projects valued at over USD 5 million in certain 
sectors. This exemption also applies to domestic investors. Foreign investors enjoy national 
treatme nt, as guaranteed by law, and are subject to the same legal regime as domestic investors. 
Meanwhile, the new regime no longer allows for the tax invariability that was granted to foreign 
investors via contracts with the State, meaning that the same conditi ons now apply to foreign and 
domestic investors.  WT/TPR/S/451/Rev.1  
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  13. During the period under review, Chile continued its Customs modernization and trade 
facilitation efforts. Chile ratified the WTO Trade Facilitation Agreement (TFA) in November 2016, 
having notified all provi sions of the Agreement under Category A with immediate effect upon the 
entry into force of the TFA. In 2017, Chile amended customs legislation to simplify customs processes 
and bring the legislation into line with the provisions of the TFA. The main reform s included: the 
possibility to withdraw goods from Customs without paying duties upon providing a payment 
guarantee; the establishment of tax warehouses as a customs destination; improvements to the 
temporary admission for inward processing regime; and the  establishment of the Authorized 
Economic Operator (AEO) concept. The AEO programme was launched in January 2018. By 
June 2023, 9 importers, 8 exporters and 30 customs agents had been certified as AEOs. The 
Integrated Foreign Trade System (SICEX) is a sing le window that facilitates the electronic processing 
of import and export operations. The export module became operational in 2016, and work on 
implementing the import module has been under way since 2018. It is expected to be completed 
in 2024.  
14. Chile main tains a flat tariff structure, with two ad valorem  rates: 0% and 6%, without taking 
into account the tariff levels that would result from applying the price band system. A tariff of 6% is 
applied to almost 99.6% of the tariff lines, while the 0% rate is ap plied to just 38 lines at the 
eight-digit level of HS 2022 (mostly machinery and some means of transport). The average 
MFN tariff was 5.9% in 2023, if price bands are taken into consideration , and 5.8% for agricultural 
products. Chile uses a price band sys tem based on international reference prices for imports of 
wheat, wheat flour and sugar, which is an automatic mechanism for adjusting tariffs in line with 
international price variations . Chile also continues to set an MFN tariff quota of 60,000 tonnes per  
year for refined sugar, with an in -quota tariff of 0% and an out -of-quota tariff that is applied using 
the price band system. Chile applies a zero tariff on all products originating from least developed 
countries (LDCs), except in the case of wheat, wheat  flour and sugars The average preferential tariff 
in the agreements negotiated by Chile ranges between 0% and 1%.  
15. All goods, domestic and imported, are subject to VAT. In addition, from 1 January 2023, VAT 
is levied on all services, with the exception of s ervices provided by natural persons that issue boletas 
de honorarios  (invoices for services rendered); passenger transport services; education services; 
outpatient health services; and the income of professional partnerships. Imports of used goods are 
subject to payment of a 50% surcharge on the general tariff. Additional taxes are levied on certain 
domestic and imported products. This is the case for luxury products, alcoholic and non -alcoholic 
beverages and like products, tobacco and fuel.  
16. Imports into Ch ile of certain goods are subject to prior checks, by means of authorizations, 
certifications, endorsements or approvals. Prior checks are carried out mainly to protect human, 
animal and plant health, for environmental or public safety reasons, and to compl y with international 
agreements. Chilean legislation does not permit the imposition of quotas for imports or exports.  
17. Chile is not a frequent user of trade defence measures. Between January 2015 and 
December  2022, Chile initiated eight anti -dumping investi gations, most of which concerned steel 
products, with five resulting in the imposition of definitive duties. With regard to safeguards, Chile 
initiated five investigations and in only one case did it apply measures. During the same period, 
Chile did not in itiate any subsidies investigations and notified the WTO that it had not adopted any 
countervailing duties. As of late June 2023, Chile was not applying any anti -dumping duties and had 
no investigations under way.  
18. By law, exportation does not require the p ayment of duties. Moreover, goods exports are 
exempt from VAT, as are services provided to persons not domiciled or resident in Chile. Exporters 
of goods may recover any VAT paid when purchasing goods or using services for their export 
activities, in addit ion to any paid when importing goods used to manufacture products to be 
exported. Chile continues to operate a number of export promotion programmes, which essentially 
consist of tariff concessions in the form of a customs duty drawback scheme. From Januar y 2015 to 
December 2022, an amount equivalent to USD 40.7 million was returned to exporters under this 
scheme. The Directorate -General of Export Promotion (ProChile) offers various services and 
programmes to exporters, including co -financing, to bolster th e range of goods and services for 
export, and to promote the internationalization of companies. The Chilean Economic Development 
Agency (CORFO) runs a programme that guarantees a percentage of the loans used to finance the 
investments or working capital of  companies that export or are involved in foreign trade.  WT/TPR/S/451/Rev.1  
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  19. Chile continues to pursue various incentive programmes in order to promote investment and 
the economy in remote areas of the country; support MSMEs; boost competitiveness and production 
diversificati on; and foster innovation and new technologies. Incentives may include tax concessions, 
financing, technical training or business management support. There are numerous business support 
programmes, the majority of which are administered by CORFO. In many c ases, resources are 
awarded through calls for tenders, which are launched regularly. In addition, through the General 
Investment Guarantee Fund (FOGAIN), CORFO provides risk coverage to financial institutions that 
grant loans to companies. MSMEs are also e ligible to access the Small Business Guarantee Fund 
(FOGAPE). During the period under review, Chile notified the WTO Committee on Subsidies and 
Countervailing Measures of programmes for regional support, free trade zones and financing to 
promote the develo pment of artisanal fisheries and small -scale aquaculture. The free trade zones 
located in the cities of Iquique and Punta Arenas enjoy tax and customs benefits. Firms engaged in 
all types of activities, with the exception of mining, fishing and financial s ervices firms, may benefit 
from the free zone regime.  
20. The procedures for the preparation, adoption and application of technical regulations and 
conformity assessment are not centralized, rather they are the responsibility of the respective 
empowered minist ries or agencies, which are required to publish such measures on their websites. 
Technical regulations and conformity assessment procedures should be based, as far as possible, on 
international standards and should accord to imported products treatment no less favourable than 
that accorded to like products of national origin. Between January  2015 and early March  2023, Chile 
submitted 535 notifications to the WTO Committee on Technical Barriers to Trade, of which 328  were 
new notifications and the remainder addenda or corrigenda. The objective of the majority of the 
technical regulations notified was protection of human health or safety, and they mainly concerned 
foodstuffs, household appliances, building materials, vehicles, toys, pharmaceutical products and  
cosmetics. With regard to sanitary and phytosanitary (SPS) measures, the drafting process begins 
when the need to update an existing measure is identified or when a sanitary event occurs that 
requires a new regulation. Draft SPS measures are drawn up by t echnical committees and are based, 
in general, on international standards. Most of the SPS measures notified to the WTO over the period 
2015-22 are based on international standards. If a risk assessment reveals the need for more 
stringent regulations than the international ones, the regulations are drafted internally. Between 
January  2015 and December  2023, Chile submitted 444 notifications to the WTO's SPS  Committee.  
21. During the period under review, Chile's legal framework regarding competition underwent 
reforms aimed at aligning national regulations with international standards. The reforms introduced 
include: the establishment of a preventive and mandatory control system for mergers that exceed 
certain thresholds; the tightening of sanctions ag ainst collusive practices, including the 
reintroduction of criminal liability for offenders; new compensation mechanisms for damages; 
additional powers for competition authorities; and institutional and procedural improvements. The 
acquisition of a stake o f more than 10% of the capital of a competing company, above a certain 
threshold, must now also be notified. With the establishment of a regime of prior and mandatory 
control of mergers, it is expected that greater legal certainty will be given to all thos e involved in 
these operations and that the interest of consumers will be protected. From June 2017 to 
March  2023, the National Economic Prosecutor's Office (FNE), charged with investigating mergers, 
received 241 prior notifications of concentrations and i nitiated 218 investigations.  
22. Chile is an observer in the WTO Committee on Government Procurement and has accepted 
commitments on government procurement under the trade agreements it has concluded. The 
Government Procurement and Contracts System is based on  a best practices mechanism. The 
primary legislation governs central government agencies, regional and provincial governments, and 
municipalities. Meanwhile, procurement by state -owned enterprises and for public works is governed 
by the relevant regulation s. There is no provision in Chile's legislation for margins of preference for 
national suppliers. Nor is there any discrimination whatsoever between products, services or 
suppliers on the basis of origin. The procurement policy seeks to simplify, digitaliz e and interconnect 
government procurement management processes with a view to making savings and better use of 
time. In 2022, procurement by the Chilean Government (excluding state -owned enterprises) was 
equivalent to 5.0% of GDP. In value terms, 70% of pr ocurement contracts were awarded by tender, 
the mandatory method to be used for transactions above a certain threshold, except in exceptional 
cases where private tendering or direct contracting is justified. Low -value procurement uses 
framework contracts a nd the Compra Ágil  module, adopted in 2020.  WT/TPR/S/451/Rev.1  
- 11 - 
  23. Since its last review, Chile has introduced significant legislative reforms aimed at 
strengthening its intellectual property system, and aligning it with international commitments and 
international best practices. In particular, in 2021, substantial reform s were introduced to industrial 
property legislation in order to update it. These changes, which came into force in May 2022, relate, 
inter alia , to the introduction of provisional patent applications, exceptions to patentability, the 
expiration of unused trademarks, the registration of trademarks for industrial property, a broader 
definition of trade secrets, and changes to the regulations applicable to geographical indications and 
appellations of origin. The possibility of imposing prison sentences for in fringement of industrial 
property rights was also introduced.  
24. Agricultural remains a key sector for Chile, in terms of its contribution to employment and 
exports. The main crops are cereals and fruit, which are the main export products. Fruit production 
has a comparative advantage thanks to off -season production in relation to northern hemisphere 
markets. Agricultural policy is organized around various key areas, including the climate emergency, 
sustainability, food sovereignty, competitiveness based on inn ovation and foreign trade. Chile 
notified the WTO that it had not granted any export subsidies for agricultural products during the 
period 2015–22. The agricultural sector support policy is mainly aimed at small and medium -sized 
producers. Chile has notifi ed the WTO of several domestic support programmes implemented during 
the period 2015 –22, mainly under the Green Box. In April 2022, the Siembra por Chile  programme 
was set up, with a view to ensuring food security and mitigating the recent rise in input pr ices. 
25. Chile is among the world's top 10 largest capture fisheries producers. Fishery products are its 
third largest export item after mining products and fruit. Most of the exports in value terms came 
from aquaculture (particularly salmon) and the rest fro m capture fisheries. Access to these activities 
is regulated through permits in the case of fisheries, and through concessions in the case of 
aquaculture. Chilean nationals, foreign nationals with permanent residence in Chile, and legal 
entities legally co nstituted in the country, may participate in these activities. The permit system 
covers three regimes: (i) the regime for fisheries in a state of full exploitation; (ii) fisheries under 
the recovery or incipient development regime; and (iii) the general re gime for fisheries with closed 
access. Holders of fishery authorizations, licences and permits are subject to the payment of a licence 
fee for each vessel engaged in extractive fishing activities. Vessels registered in Chile must be used 
for industrial fis hery activities.  
26. Mining remains the backbone of the national economy. Chile is the world's top producer of 
copper and iodine, the second -largest producer of molybdenum and the fourth -largest producer of 
silver. Mining, led by copper, accounted for more tha n half of Chile's total merchandise exports 
in 2022. The State is the sole owner of all minerals in its territory, although it allows domestic or 
foreign companies to carry out activities in the sector through a system of mining concessions, or 
administrat ive concessions and special operating contracts in the case of hydrocarbons and lithium. 
The State has a large presence in the mining sector, through two state -owned enterprises: the 
National Copper Corporation (CODELCO) for large -scale mining; and the Nat ional Mining Company 
(ENAMI) for small and medium -scale mining. During the period under review, Chile adopted the 
National Lithium Strategy and created two CODELCO subsidiaries focused on lithium. Chile has a 
copper reserve for the domestic manufacturing i ndustry to ensure its supply; in 2022, 
nine companies obtained supplies from this reserve. The National Mining Policy 2050, adopted in 
2022, seeks to modernize the mining legal framework and achieve carbon neutrality in the sector 
by 2040. In May 2023, the  National Congress approved a draft law establishing a new mining royalty 
for companies with annual copper sales above a certain limit, composed of an ad valorem  tax of 1% 
on sales and an ad valorem  tax of between 8% and 26% on mine operating income. At th e time of 
writing, the law had yet to be passed. In 2018, Chile implemented the Copper Price Stabilization 
Fund for Small -scale Mining to mitigate the fluctuations in prices for small producers, with an initial 
contribution of USD  50 million. Through the F und, ENAMI finances part of the difference between 
the international price and the "stabilization price" set by the Ministry of Finance, if the latter is 
higher.  
27. During the review period, Chile significantly increased its capacity to generate electricity f rom 
renewable sources, mainly solar and wind, and continued to promote the incorporation of this type 
of energy into its energy matrix. The objectives of the national policy, Energy 2050, include ensuring 
that at least 80% of the electricity produced in th e country comes from renewable sources by 2030 
and 100% by 2050. To make progress in meeting these objectives, Chile adopted the Electricity 
Matrix Decarbonization Plan in 2019, supplemented by the Just Energy Transition Strategy in 2021, 
which sets out th e process of decommissioning 28 coal -fired power plants in the country by 2040. WT/TPR/S/451/Rev.1  
- 12 - 
  As of December 2022, eight had been closed. The National Green Hydrogen Strategy was approved 
in 2022, which aims to ensure that all new light and medium -sized vehicles sold in  the Chile by 2035 
are electric. Similarly, the Framework Law on Climate Change was adopted in June 2022, which sets 
the objective of achieving carbon neutrality by 2050.  
28. The manufacturing sector's main activities are the manufacture of food; fuels and che micals, 
plastics and rubber; and machinery, equipment and metal products. Chile is a net importer of 
manufactured products, however exports outperformed imports during the period 2015 -22. The 
MFN tariff applied to manufactured products is 6%, except for 38  duty-free tariff lines that mostly 
refer to transport equipment.  
29. Chile has a diversified financial sector with a high degree of financial intermediation and a 
strong presence of financial conglomerates. During the review period, Chile continued to amend i ts 
rules on banking supervision and regulation to meet the Basel  III criteria. During the same period, 
the supervision of the banking sector, insurance and the securities market fell to one entity, while 
pension funds continued to be supervised by a separa te entity. In order to operate in the Chilean 
market, foreign banking and insurance companies must be set up as sociedades anónimas especiales  
("special corporations") or establish branches with separate capital. In Chile, foreign insurance 
companies may d irectly market international maritime transport insurance, international commercial 
aviation insurance and insurance for goods in transit, on a reciprocal basis. Chile requires all financial 
institutions to apply a maximum interest rate on consumer credit.  The Fintech Law was introduced 
in 2023, which establishes a general framework to incentivize the provision of financial services by 
technological means. Only legal persons entered in the Register of Financial Service Providers may 
provide services regulat ed by law. International companies must be domiciled in Chile.  
30. The telecommunications sector, except for free -to-air television services,  is entirely privately 
operated. The telecommunications policy seeks to promote equitable and inclusive access to 
telecommunications, so as to narrow the digital divide; improve the quality of telecommunications 
services; increase competition in the sector; and encourage investment in high -capacity, high -speed 
convergent infrastructure. The law enshrines free and equal acc ess to the use of the radio spectrum, 
which is granted through concessions, permits or licences for use. The law also establishes pricing 
freedom as the general rule, except where the Competition Tribunal (TDLC) rules that the conditions 
to ensure pricing freedom in that market are not met. In the case of interconnections that allow 
network interoperability, tariffs are regulated.  
31. Chile maintains an open skies policy that allows free entry to the market and the freedom to 
set prices. Foreign companies are p ermitted to engage in cabotage, without requiring reciprocity. 
Scheduled international services are allocated through a public tender process, for a period of 
five years. Domestic routes are not subject to any allocation or tendering process. Air transport  
companies are free to set the rates for domestic and international flights, but must register them 
with the Civil Aeronautics Board (JAC). Airports are state -owned but may be built and managed by 
private (domestic or foreign) companies under public works concessions awarded by public tender. 
All international airports, except one, are operated under concessions.  
32. Maritime transport plays a key role in Chile's international trade, as it carried 89.5% of exports 
and 77.3% of imports in 2022. The country has 7 2 ports, 13 of which are state -owned. The law 
allows the operation of public ports and the provision of related services to be delegated to private 
entities, domestic or foreign, through a bidding process. International cargo transport services may 
be prov ided by both domestic and foreign companies on the basis of the principle of reciprocity. 
Maritime cabotage services are generally reserved to ships registered in Chile, and the State may 
grant subsidies to Chilean shipping companies when a service is requ ired that is not available in the 
market. However, foreign vessels may undertake maritime cabotage activities under certain 
circumstances, as specified by law. Similarly, since 2019, Chile has allowed foreign -flag vessels with 
carrying capacity of more tha n 400 passengers to provide cabotage services for tourism purposes. 
Provisions were adopted in 2021 to streamline the implementation of the maritime single window 
(VUMAR), introduced in 2018.  
 WT/TPR/S/451/Rev.1  
- 13 - 
  1  ECONOMIC  ENVIRONMENT  
1.1  Economic structure  and trends  
1.1.  The Chilean economy continues to depend heavily on the mining sector, particularly copper 
mining. The share of this sector in current GDP experienced significant changes during the period 
under review, which were mostly a reflection of the fluctuation in international prices of copper and 
other minerals. This is a common trend in Chile as previous reports have already indicated. During 
the period under review, in addition to this tre nd there was the impact of the pandemic, which 
affected other sectors of the economy, in particular services and construction, to a greater extent 
than mining. As a result, the share of the mining sector in current GDP was 14.2% in 2022, compared 
with 7.9%  in 2015 (Table 1.1). Copper mining accounted for 10.9% of GDP in 2022 compared with 
7.2% in 2015. However, the share of copper mining in mining GDP shrank during the period under 
review, down from 91.1% in 2015 to 76.8% in 2022. This was due to the fact t hat the drop in the 
volume of copper produced in 2022 was greater than the decline in production of other minerals.1 
1.2.  The manufacturing sector's share of GDP decreased during the review period from 10.4% in 
2015 to 9.7% in 2022. The sector's output fell sh arply during the pandemic, particularly in 2021. 
The share of agriculture in GDP also contracted slightly during the review period, from 3.3% in 2015 
to 2.8% in 2021, mainly as a result of reduced activity due to the pandemic and recurrent droughts 
(Sectio n 4.1). Services' share of GDP declined from 58.3% in 2014 to 54.3% in 2022, mainly 
because of the pandemic, which led to a decrease in the share of transport, business, and restaurant 
and hotel services.  
1.3.  After growing at an average annual rate of 2.2% bet ween 2014 and 2018, real GDP growth 
slowed in 2019, when it was just 0.7% as a result of the decline in mining and industrial production. 
In 2020, the Chilean economy was hit hard by the COVID -19 pandemic, which caused all economic 
sectors to contract in t erms of supply, as did all components of GDP by expenditure category, with 
GDP shrinking by 6.1% and aggregate demand by 9.4% (see below). In 2021, the Chilean economy 
experienced real GDP growth of 11.7%, which exceeded pre -pandemic levels and trend GDP g rowth 
(Table 1.1).2 According to the authorities, the Chilean economy grew at an accelerated rate as a 
result of massive fiscal transfers and withdrawals from pension funds, which added liquidity 
equivalent to some 35% of GDP to the economy and which fina nced a large proportion of private 
consumption.3 In addition to this, lending displayed countercyclical behaviour.4 The economy's 
performance in 2021 was a reflection of its gradual re -opening and of the fact that households and 
companies had better adap ted to the health situation and the evolution of that situation over the 
year. In 2022, growth returned to the average level observed between 2014 and 2018, mainly as a 
result of the contractionary monetary and fiscal policy adopted to restore macroeconomi c balance 
and thus address the hike in inflation (see below). In the light of the monetary policy's strong 
contractionary impact and the end of the financial incentives granted during the pandemic, it is 
expected that real GDP will contract slightly in 202 3.5 
1.4.  Chile's GDP per capita is one of the highest in Latin America. Although GDP contracted in 2020 
as a result of the pandemic's negative effects, in 2021, it recovered significantly thanks to the high 
rate of real GDP growth. In 2022, GDP per capita increased to USD 15,164. The International 
Monetary Fund (IMF) estimates Chile's GDP per capita in purchasing power parity terms at 
USD 29,083 for 2022.6 
 
1 Mining Council (2023), Cifras Actualizadas de la Minería . Viewed at: https://consejominero.cl/ mineria -
en-chile/cifras -actualizadas -de-la-mineria/ .  
2 Central Bank of Chile (BCCh) (2022), Cuentas Nacionales de Chile 2018 – 2021. Viewed at: 
https://si3.bcentral.cl/estadisticas/Principal1/informes/AnuarioCCNN/pdf/ANUARIO_CCNN_2021.pdf .  
3 Ministry of Fi nance (2022), Estado de la Hacienda Pública 2022 . Viewed at: 
https://biblio.hacienda.cl/estado -de-la-hacienda -publica/escenario -macroeconomico .  
4 Ministry of Finance (2022), Estado de la Hacienda Pública 2022 . Viewed at: 
https://biblio.hacienda.cl/estado -de-la-hacienda -publica/escena rio-macroeconomico . 
5 Information from the International Monetary Fund (IMF). Viewed at: 
https://www.imf.org/en/Countries/CHL .  
6 Information from the IMF. Viewed at: https://www.imf.org/en/Publications/WEO/we o-
database/2023/April/weo -
report?c=228,&s=PPPPC,&sy=2022&ey=2022&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds
=,&br=1 . WT/TPR/S/451/Rev.1  
- 14 - 
  Table 1.1 Main economic indicators, 2015 -22 
 2015 2016  2017  2018  2019  2020  2021  2022  
GDP at current prices (CLP billion)  158,623  168,765  179,315  189,435  195,752  201,429  240,371  262,593  
GDP at current prices (USD billion)  242 249 276 295 278 254 317 301 
GDP at constant prices (CLP billion, chain -linked 
volume at previous year's prices)  176,630  179,726  182,166  189,435  190,843  179,115  200,138  205,023  
Real GDP (annual growth rate)  2.2 1.8 1.4 4.0 0.7 -6.1 11.7 2.4 
GDP per capita (USD)  13,493  13,723  15,004  15,754  14,575  13,058  16,095  15,164  
Share of GDP by activity (% of GDP at current prices)  
Crop and animal production and forestry  3.3 3.6 3.4 3.2 3.2 3.6 3.1 2.8 
Fishing  0.4 0.6 0.8 0.7 0.8 0.5 0.6 0.7 
Mining  7.9 7.4 9.0 8.9 8.2 11.6 14.4 14.2 
 Mining of copper  7.2 6.4 8.0 7.9 7.3 10.5 13.1 10.9 
 Other mining  0.8 0.9 0.9 1.0 0.9 1.1 1.3 3.4 
Manufacturing  10.4 9.7 9.2 9.6 9.0 9.0 8.6 9.7 
 Food products, beverages and tobacco products  3.8 3.6 3.4 3.7 3.6 3.7 3.3 3.9 
 Food products  2.8 2.7 2.7 2.8 2.7 2.8 2.4 3.0 
 Beverages and tobacco products  1.0 0.8 0.7 0.9 0.9 0.9 0.9 0.8 
 Textiles, apparel, leather and footwear  0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 
 Wood and furniture  0.8 0.7 0.7 0.6 0.6 0.6 0.6 0.6 
 Cellulose, paper and printed matter  0.9 0.8 0.8 1.0 0.7 0.6 0.7 0.7 
 Chemicals, petroleum products, rubber and 
plastics  2.4 2.0 1.8 1.8 1.7 1.8 1.8 2.4 
 Non-metallic mineral products and bas e metals  0.6 0.5 0.5 0.5 0.5 0.5 0.6 0.5 
 Metal products, machinery and equipment, 
other  1.8 1.8 1.8 1.7 1.7 1.7 1.5 1.6 
Electricity, gas and water supply and waste 
management  3.0 3.1 3.1 2.9 3.2 3.3 2.5 2.1 
Construction  6.5 6.5 6.1 6.5 6.8 6.0 5.9 5.9 
Services  58.3 59.0 58.3 58.0 58.8 56.3 54.4 54.3 
 Commerce, restaurants and hotels  11.4 11.6 11.6 11.4 11.1 10.2 11.3 10.6 
 Commerce  9.5 9.7 9.6 9.2 8.9 9.0 9.8 8.8 
 Restaurants and hotels  1.9 1.9 2.0 2.1 2.2 1.2 1.4 1.8 
 Transportation  6.5 6.4 6.1 5.7 5.7 4.8 4.8 4.5 
 Communication and information services  3.2 3.0 2.9 2.8 2.8 2.7 2.6 2.6 
 Financial and business services  14.1 13.8 13.2 13.5 13.7 13.5 12.0 12.2 
 Financial services  4.3 4.3 4.2 4.4 4.2 4.7 3.5 3.0 
 Business services  9.8 9.5 9.0 9.1 9.5 8.9 8.5 9.1 
 Housing and real estate services  7.4 7.5 7.8 7.7 7.9 8.0 7.5 8.0 
 Personal services  11.1 11.8 11.9 12.2 12.7 12.1 11.8 12.1 
 Public administration  4.6 4.8 4.8 4.8 4.9 5.0 4.5 4.3 
GDP at factor cost  89.9 90.0 89.9 89.8 90.0 90.2 89.4 89.8 
Taxes on products  10.1 10.0 10.1 10.2 10.0 9.8 10.6 10.2 
GDP by expenditure category (real growth rate)c 
Domestic demand  2.7 1.9 2.9 5.0 0.9 -9.4 21.7 2.3 
Total consumption   
4.1 3.8 3.6 0.7 -6.6 19.3 3.1 
Consumption of households and non -profit 
institutions serving households (NPISH)a 2.4 3.3 3.6 3.8 0.7 -7.4 20.8 2.9 
Durable goods  1.3 5.5 11.0 6.1 -4.5 3.7 44.1 -16.0 
Non-durable goods  2.4 2.6 3.5 2.4 -0.2 -0.1 18.6 -0.7 
Services  2.6 3.5 2.1 4.5 2.6 -15.6 18.0 11.9 
Government consumption  5.0 7.6 4.7 3.1 0.6 -3.5 13.8 4.1 
Gross fixed capital formation  0.1 -2.4 -3.3 6.5 4.5 -10.8 15.7 2.8 
Construction and other works  3.5 -2.2 -6.0 4.4 5.2 -10.1 11.2 2.5 
Machinery and equipment  -6.0 -2.6 1.8 10.3 3.2 -12.1 23.2 3.3 
Exports of goods and services  -2.3 0.6 -1.0 4.9 -2.5 -0.9 -1.4 1.4 
Exports of goods  -1.9 0.5 -1.9 5.9 -2.2 2.9 -0.9 -1.4 
 Crop and animal production, forestry and fishing  4.9 15.3 -5.6 17.0 2.4 -3.0 8.7 5.2 
 Mining  -0.4 -3.1 -3.1 4.9 -2.4 3.9 -2.4 -3.8 
Copper  -0.4 -3.2 -3.3 5.0 -1.2 1.3 -3.2 -5.6 
Other  -0.6 -1.6 -1.5 2.8 -15.4 34.0 6.0 13.8 
 Industry  -5.2 2.2 0.7 4.9 -3.0 3.0 -0.8 1.7 
Exports of services  -5.5 1.4 5.2 -2.5 -5.0 -30.7 -7.4 43.8 
Imports of goods and services  -0.9 1.2 4.5 8.6 -1.7 -12.3 31.8 0.9 
Imports of goods  -0.7 1.2 4.9 8.6 -2.1 -9.8 35.4 -1.6 
 Crop and animal production, forestry and fishing  4.6 1.5 11.2 13.7 0.3 20.4 -1.3 -8.4 
 Mining  -6.0 7.5 0.0 2.8 4.4 -9.0 13.7 -12.3 
 Industry  0.0 0.6 5.2 9.1 -2.9 -10.5 38.4 -0.3 
Imports of services  -2.1 1.1 2.1 8.7 0.5 -26.1 9.1 21.8 
Employment  
Unemployment rate (%)  6.4 6.6 6.9 7.3 7.2 10.6 9.1 7.8 
Labour force, population aged 15 years and over 
(thousands of persons)  8,855  8,996  9,241  9,484  9,671  8,808  9,109  9,619  
Employment by branch of economic activity (% of total)  
Crop and animal production, forestry and fishing  8.2 8.3 8.1 8.0 7.7 7.1 6.4 6.1 
Mining and quarrying  3.0 2.5 2.4 2.5 2.6 2.6 2.6 3.0 
Manufacturing  11.2 10.7 10.7 10.4 9.8 10.1 9.9 9.9 
Electricity, gas, steam and air conditioning supply  0.5 0.5 0.5 0.5 0.5 0.6 0.6 0.5 
Water supply; sewerage, waste management and 
remediation activities  0.5 0.6 0.6 0.5 0.6 0.8 0.7 0.7 
Construction  8.6 8.9 8.4 8.4 8.6 7.9 9.0 8.8 
Services  67.9 68.6 69.2 69.7 70.2 70.6 70.4 70.8 
Commerce  19.1 19.4 19.4 18.9 19.2 18.8 19.1 19.1 
Restaurants and hotels  4.2 4.6 4.5 5.0 5.0 3.8 4.1 4.4 
Transportation and storage  6.4 6.5 6.5 6.7 6.4 6.1 6.1 6.2 WT/TPR/S/451/Rev.1  
- 15 - 
   2015 2016  2017  2018  2019  2020  2021  2022  
Information and communication  1.9 1.8 2.0 2.0 1.8 2.0 2.4 2.3 
Financial and insurance activities  2.2 2.1 1.9 1.9 2.0 2.4 2.1 2.0 
Real estate activities  0.8 0.9 1.0 1.0 0.9 0.9 1.0 1.2 
Professional, scientific and technical activities  3.0 3.2 3.1 3.4 3.4 3.7 3.8 3.7 
Administrative and support service activities  2.4 2.6 2.7 2.6 2.6 3.1 2.9 3.1 
Public administration and defence  5.7 5.4 5.5 5.4 5.7 6.4 6.2 5.6 
Education  8.4 8.4 8.5 8.8 8.9 9.0 8.6 8.3 
Human health and social work activities  5.4 5.3 5.5 5.6 6.0 6.8 6.8 6.9 
Arts, entertainment and recreation  1.2 1.2 1.2 1.3 1.4 1.0 0.9 1.0 
Other service activities  2.9 2.7 3.0 3.1 3.0 3.4 3.6 3.6 
Activities of households as employers  4.3 4.4 4.2 4.1 4.0 3.2 3.0 3.4 
Activities of extraterritorial organizations and 
bodies  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.0 0.0 0.0 0.0 0.4 0.3 0.3 
Nominal wage index (2016=100)  95.0 100.0  105.7  110.5  115.6  119.9  126.6  138.8  
Real wage index (2016=100)  87.2 88.4 91.5 93.4 95.3 95.8 96.9 95.1 
Nominal hourly wage index (2016=100)  94.4 100.0  105.7  110.6  115.7  120.0  127.2  139.1  
Other economic indicators  
Population (million)  18.0 18.2 18.4 18.8 19.1 19.5 19.7 19.8 
Exchange rate (CLP/USD)  654.25  676.83  649.33  640.29  702.63  792.22  759.27  872.33  
Real exchange rate (annual growth rate)  -1.0 1.8 3.4 1.4 -4.8 -8.2 3.4 -3.5 
Gross national savings (% of GDP)  22.8 21.1 19.9 19.6 19.8 19.9 18.8 17.47  
Foreign savings (% of GDP)  2.8 2.6 2.8 4.6 5.2 1.9 7.5 9.0 
a Private non -profit institutions.  
Source:  Central Bank of Chile.  
1.5.  Regarding GDP by expenditure category, household consumption saw relatively stable annual 
growth between 2015 and 2018, with an average rate of 3.3% in real terms. In 2019, there was a 
sharp downturn in private consumption, which grew by only 0.7%. The health crisis and the lockdown 
measures adopted to c ombat the COVID -19 pandemic resulted in a significant contraction in private 
consumption in 2020 of 7.4% in real terms. As a consequence of the fiscal and monetary measures 
introduced to address the negative effects of the pandemic, aggregate demand expand ed rapidly, in 
particular expenditure on durable goods rose considerably, which pushed up private consumption by 
20.8% in real terms in 2021. In the third quarter of 2021, expenditure on durable goods was 
50% higher than the levels prior to the COVID -19 pa ndemic. The authorities consider that this rapid 
growth gave rise to a macroeconomic imbalance that resulted in a high fiscal and current account 
deficit, as well as strong demand pressure on prices.7 
1.6.  Gross fixed capital formation was seriously impacted by the pandemic and contracted by 10.8% 
in real terms in 2020, after having increased at a real average annual rate of 1.5% between 2015 
and 2019. In 2021, investment was up by 15.7%. This growth continued in 2022, albeit at a more 
moderate rate ( 2.8% per year) and more in line with trend growth. Exports in goods and services 
fell slightly between 2019 and 2021, mainly due to the effects of the pandemic and fluctuations in 
the price of copper. In 2022, exports recovered, with an annual increase of 1.4% in real terms. 
However, imports, after falling sharply in 2020, rose rapidly (by 31.8% in real terms) in 2021 
(Table  1.1). 
1.7.  As a consequence of the pandemic, the unemployment rate jumped from 7.2% in 2019 to 
10.6% in 2020. This rate declined to 9.1% in  2021 and to 7.8% in 2022, partly due to the support 
programmes implemented and the economic recovery.  
1.8.  According to the IMF, the OECD and the Ministry of Finance, Chile is facing a period of low or 
negative growth in 2023 but is set to rebound in 2024. Thi s is due, in part, to the economic 
adjustment resulting from the significant tightening of monetary policy, which translated into 
repeated increases in the key interest rate (see below) and the end of the expansionary phase of 
the fiscal policy adopted dur ing the pandemic. The IMF considers that, after an impressive recovery 
from the COVID -19 pandemic, the Chilean economy is undergoing a necessary transition towards 
sustainable growth amid a challenging external environment, it therefore expects that year -on-year 
GDP growth will not recover until the last quarter of 2023.8 
1.9.  One of the challenges faced by the Chilean economy is the need to increase productivity. This 
was identified in studies by both the IMF and the OECD. According to the OECD, an increase in 
 
7 Ministry of Finance (2022), Estado de la Hacienda Pública 2022 . Viewed at: 
https://biblio.hacienda.cl/estado -de-la-hacienda -publica/escenario -macroeconomico . 
8 IMF (2023), El Directorio Ejecutivo del F MI concluye la Consulta del Artículo IV con Chile 
correspondiente a 2022 , Press Release No. 23/10, 20 January 2023.  WT/TPR/S/451/Rev.1  
- 16 - 
  productivity will require greater investment in research and develop ment (R&D), fewer and simpler 
administrative procedures, such as for granting permits and licences, a review and modernization of 
the regulatory framework, a reduction in regulatory barriers and increased competition.9 In a recent 
report, the IMF observed  that, after increasing sharply during the pandemic, Chilean labour 
productivity has rapidly decelerated since 2022, driven by the recovery in employment. By the 
third quarter of 2023, Chilean labour productivity was almost 6% lower than it was in 2015.10 The 
IMF report notes that the authorities' are of the view that a successful implementation of the Fintech 
Law (Section 4.4), measures to deepen capital markets, efforts to develop an institutional framework 
for lithium (Section 4.2) and progress on the cl imate agenda could foster productivity and potential 
growth.  
1.2  Fiscal policy  
1.10.  The Ministry of Finance is responsible for formulating and implementing fiscal policy in Chile. 
This policy is formulated in accordance with the structural balance rule with certain  flexibilities set 
out in the Fiscal Accountability Law.11 The policy of structural balance was applied for most of the 
period under review, but had to be relaxed during the pandemic, when an expansionary fiscal policy 
was implemented. Although it is an ex ception to the spirit of the structural balance rule, this 
aberration is provided for in the Fiscal Accountability Law, which is aimed at ensuring fiscal stability 
in the medium term and, therefore, allows for the use of countercyclical measures to address  critical 
situations or economic downturns or slowdowns.  
1.11.  In general, this fiscal policy of structural balance seeks to maintain structural surpluses and 
contingency funds which can serve as buffers in the  future. The targe t surplus, initially set at 1% of 
GDP, was relaxed in  2008 and 2009 to 0.5% of GDP, and to 0% in 2010. The  targets for 2011 -15 
were deficits of between 1% and 1.8% of GDP. Since 2014, annual targets as a percentage of GDP 
have not been applied, but rather the objective of restoring structu ral balance in the medium term 
has been set. In this regard, Decree No. 89212 established the basis for fiscal policy for the period 
2014-18 and provided that fiscal policy should be guided by the concept of structural balance, 
excluding the cyclical effec t on public finances of fluctuations in economic activity, the price of copper 
and other external factors. Therefore, fiscal expenditure was decoupled from changes in short -term 
factors that may affect tax revenue, without endangering the stability of the fiscal accounts in the 
long term.  
1.12.  Law No.  21.210 (the Tax Reform Law) was promulgated on 13 February 2020. The main 
objectives of the Law were to amend the tax system and abolish existing regimes. It also created 
The Office of the Taxpayers' Ombudsperson ( DEDECON). The reform maintained the rate of 
first category tax paid by companies at 25% (or 27% depending on the regime chosen), whereas 
the top rate of the complementary global tax  increased from 35% to  40%. Nevertheless, the law 
established that the maxi mum effective rate for taxpayers subject to the nominal rate of 40%, who 
opt for the 27% first category regime, would be 44.45%.  
1.13.  Furthermore, the measures for micro -, small and medium -sized enterprises (MSMEs) (with 
up to 100,000 units of account (UF) in s ales) were retained as an incentive for saving and 
investment, including a deduction from the amount of taxable income for reinvested profits. These 
measures were adopted thanks to the reform introduced by Law No. 21.210 with respect to Law 
No. 20.78013, which also amended "green taxes" to allow for a better application of: (a) the tax on 
stationary emission sources of carbon dioxide (CO 2), as well as particulate material (PM), nitrogen 
oxides (NOx) and sulphur dioxide (SO 2); and (b) the tax on new, light - and medium -duty motor 
vehicles in proportion to the environmental damage that the vehicle in question causes during its 
useful life, based on its NOx emissions, to its urban performance and to the sale price.  
 
9 OECD (2022), Estudios Económicos de la OCDE, Chile: Hacia un Desarrollo Sostenible , Executive 
Summary, 23 September 2022. Viewed at: https://www.oecd.org/economy/panorama -economico -chile/ .  
10 IMF (2023), Chile: 2022 Article IV Consultation -Press Release; Staff Report; Staff Supplement; and  
Statement by the Executive Director for Chile. Country Report No. 2023/036 , 20 January 2023. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2023/01/20/Chile -2022-Article -IV-Consultation -Press -Release -
Staff-Report -Staff-Supplement -and-528410 . 
11 Law No. 20.128 of 30 September 2006 (and amendments thereto).  
12 Decree No. 892 of 3 July 2014, Ministry of Finance.  
13 Law No. 20.780 of 29 September 2014 (and amendments thereto).  WT/TPR/S/451/Rev.1  
- 17 - 
  1.14.  In May 2023, the Mining Royalty Law was adopte d, which amended the taxation of large -scale 
copper mining, that is, mining that produces more than the equivalent of 50,000 metric tonnes of 
copper. The new Law provides for two components, an ad valorem  component, with a rate of 1% on 
sales, and an opera ting margin component, with rates of between 8% and 26%. Notwithstanding 
these rates, the Law includes clause establishing a maximum potential tax burden of 46.5%, taking 
into account income tax, additional tax and the mining royalty. The maximum tax burde n will be 
45.5% for mining operators with sales of up to 80,000 metric tonnes of copper. The authorities 
expect that the new Law will boost tax revenues up to 0.45% of GDP (that is, some 
USD 1,350  million). T he new mining royalty i s expected to bring in  an additional USD  450 million  
which will be used to finance new funds to support subnational entities. Therefore, each year: 
USD 55 million will be allocated to mining communes (Mining Commune Fund); USD 170 million to 
low-income communes in the country thro ugh the Territorial Equity  Fund; and USD 225 million to 
regional governments through the Productivity and Development Fund. In the latter case, the 
resources will be used to finance investments to promote production and regional development 
activities, and  scientific and technological research.14 
1.15.  Also in 2023, the Government set out the guidelines for the proposed new tax reform, the 
Tax Pact, which seeks to lay the foundations for a new fiscal agreement that includes raising taxes, 
combatting tax avoidance  and evasion and informality, increasing fiscal efficiency and promoting 
growth. The aim of this new reform will be to allow for the financing of the increase in the universal 
guaranteed pension, of the new pension system, and of the health care and the na tional care system  
reform, among other social plans. According to the authorities, the package of measures seeks to 
generate greater resources for the Treasury in the order of 2.7% of GDP.  
1.16.  The COVID -19 pandemic resulted in the adoption of fiscal support me asures for substantial 
amounts. According to the Ministry of Finance, the greatest increase in expenditure occurred at the 
end of 2021. In line with estimates provided by the Ministry of Finance, between 2020 and 2021, 
the provisional fiscal expenditure as sociated with mitigating the effects of the pandemic amounted 
to around USD 40 billion, of which transfers to households through bonuses and subsidies totalled 
close to USD 35 billion. Support was also provided to companies, in particular MSMEs (Box 1.1).  
According to the Ministry of Finance, 2021 saw the largest ever increase in fiscal expenditure by the 
Central Government, which reached 33.4% in real terms, equivalent to 31.5% of GDP.  
Box 1.1 Chile: legal and a dministrative tax - and labour -related measures in the context 
of the COVID -19 pandemic, 2020 -21 
Chile adopted a series of tax measures, both legal and administrative, which sought to mitigate the effects of the pandemic 
on economic activity. These measures  included:  
- Stamp duty was temporarily reduced to 0% for all lending operations for six months, by means of Law No. 21.225.  
- The issuance of Supreme Decree No. 420 of 30 March 2020 by the Ministry of Finance, establishing tax measures to support 
families, workers and micro -, small and medium -sized enterprises in difficulties caused by the spread of COVID -19 in Chile. 
These mea sures sought to mitigate the impact of the exceptional measures implemented to protect the health of the 
population, such as the restrictions on movement in certain areas, the closure of public places and lockdown, on the reductio n 
in workers' income, on j ob losses and on smaller companies. The Supreme Decree establishes exceptional and extraordinary 
tax measures for the 346 communes in the 16 regions of the country, and authorizes the President of the Republic to, 
inter alia, set and amend the dates for fi ling returns and paying different taxes, change the frequency of the payment of land 
tax and extend the deadline for submitting the tax documents and records required by law.  
- In 2020, various resolutions were issued, which introduced measures such as: 
(a) the early payment of income tax refunds for SMEs and natural persons; (b) the suspension of payments of corporate 
income tax advance payments due in March, April and May; (c) the deferral of income tax payments for SMEs; the deferral 
of VAT payment s; the deferral of land tax payable for April 2020 for companies with sales of less than 350,000 UF and for 
persons owning property with a taxable value of less than CLP 133 million; the acceptance of companies' expenses related to 
addressing the health em ergency as tax deductible.  
- Law No. 21.277 of 1 April 2020, authorizing access in exceptional circumstances to unemployment insurance benefits under 
Law No.  19.728 (the Employment Protection Law), allows workers to access unemployment insurance benefits  and additional 
allowances in the case of furlough due to lockdown, or the temporary reduction of working hours. According to the Ministry 
of Finance, USD 2 billion (maximum resources) were committed, with the potential to benefit 4.5 million workers. The validity 
of the Employment Protection Law was extended until 6 September 2021 in the case of the suspension of a contract, and 
until 31 December 2021 in the case of the temporary reduction of working hours.  
- An employment subsidy (reinstatement and prote ction). This subsidy was provided in two different forms, a reinstatement 
subsidy and a hiring subsidy, and was regulated through Supreme Decree No. 28 of 2011 of the Ministry of Labour and Social 
Security, and the subsequent amendments thereto, and throug h the Exempt Resolution of 28 September 2020 of the Under -
Secretariat for Labour. The reinstatement subsidy financed the return to work of those workers who had been furloughed. 
 
14 Information from the Government of Chile. Viewed at: https://www.gob.cl/noticias/conozca -los-
ingresos -que-recibira -cada-region -con-el-royalty -minero -aprobado -en-el-congreso/ .  WT/TPR/S/451/Rev.1  
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  The subsidy was CLP 160,000 per month per worker, with a maximum limit of six months. For women, young persons aged 
between 18 and 24 years, men aged 55 years or over, persons with disabilities and recipients of a disability pension, the 
subsidy was CLP 200,000 per month. The hiring subsidy financed part of the wages of new hires du ring the first  30 days of a 
contract. The amount of the subsidy was equivalent to 50% of taxable monthly remuneration, capped at a maximum of 
CLP 250,000 for each new hire, with the exception of young persons aged between 18 and 24 years, women, men aged 
55years or over, persons with disabilities and recipients of a disability pension, for whom the subsidy was equivalent to 65% 
of gross monthly remuneration, with a ceiling of CLP 290,000.  
- FOGAPE COVID . Law No. 21.229 of 2020 , increasing the capital of th e Small Business Guarantee Fund (FOGAPE) and 
temporarily relaxing the FOGAPE requirements, raised state guarantees under the FOGAPE to USD  3 billion, and increased 
the amount of financing allowed for the working capital of companies from 350,000 UF to 1 mi llion UF in annual sales. The 
maximum amount for financing was three months of sales net of VAT for loans repayable in instalments, with terms between 
24 and 48 months, and a grace period of at least six months. In the case of financing by banks, the nomin al annual interest 
rate could not be higher than the monetary policy rate in force at the time the loan was granted, plus 3%.  
- FOGAPE Reactiva . Law No. 21.307 of 2021, amending the Small Business Guarantee Fund (FOGAPE) with the aim of boosting 
the econom ic reactivation and recovery, extended the coverage of the FOGAPE to include investment and refinancing of debts 
of companies with annual sales of up to 1 million UF. FOGAPE Reactiva  loans extended the deadline for payment and coverage 
of guarantees for up  to seven years. These loans were granted until 31  December  2021 and aimed to support MSMEs, which, 
all together, received 96.6% of the total loans processed.  
The 2021 bonus for micro - and small enterprises (MSEs), established by Law No. 21.354, was a sta te contribution of 
CPL 1 million for MSEs (natural and legal persons) affected by the COVID -19 pandemic. The beneficiary MSEs must have 
started operating before 31 March 2020 and to have an annual revenue no higher than 25,000 UF (as at 31 December 2020). 
MSEs that had to pay VAT received an additional relief bonus refunding the three -month average VAT tax debit declared on 
sales and services for the 12 months of 2019, capped at CLP 2 million. Both bonuses increased by 20% if the natural person 
or the owner  of an individual limited liability company was a woman.  
Sources:  Parliamentary Technical Advisory Service, Medidas tributarias en el contexto del COVID -19. 
Recomendaciones de la OCDE, experiencia extranjera y chilena , May 2021. Viewed at: 
https://obtienearchivo.bcn.cl/obtienearchivo?id=repositorio/10221/28678/2/Comparado__Medidas_t
ribuarias_Covid__fial_.pdf ; Budget Directorate, COVID -19: Evolución, efectos y políticas adoptadas 
en Chile y el mundo . Viewed at: https://www.dipres.gob.cl/598/articles -266625_ doc_pdf.pdf ; and 
Ministry of Finance, FOGAPE Reactiva. Viewed at : https://reporte.hacienda.cl/fogape -
reactiva/#:~:text=Estos%20cr%C3%A9ditos%20se%20podr%C3%A1n%20otorgar,56%25%20del
%20monto%20total%20movilizado . 
1.17.  In April 2022, the Government launched the programme Chile Apoya  (Chile Supports) to 
support individuals, boost job creation and address the rise in the cost of living. According to the 
authorities, in December 2022, 92% of the objectives had been achieved or were being pursued. 
The measures introduced included an infra structure fund for local governments, with a total of 
USD 300 million earmarked for new labour -intensive and green investment projects carried out by 
municipalities, regional governments and public services. As part of this programme, and to boost 
activity , employment, private investment and local power, in August 2022, the initiative Chile Apoya 
a tu Comuna  (Chile Supports Your Commune) was launched, with investment of around 
CLP 65 billion. A Chile Apoya  winter bonus was also included, providing support i n the amount of 
CLP 120,000 per person to address rising prices of food and, in winter, of energy and heating. 
Furthermore, the coverage was expanded of the programmes implemented by the Production 
Development Corporation (CORFO) and Technical Cooperation Service (Sercotec) (see Sections  3 
and 4), which focus on activities related to tourism, culture and women's entrepreneurship. In order 
to provide support to 165,000 MSMEs, the CORFO financing programmes were stepped up, with the 
aim of granting more loans  to unbanked MSMEs within four years starting in August 2022, and the 
terms of the guarantees granted by the FOGAPE were relaxed.15 
1.18.  The Financial Strategy on Climate Change, which was updated in March 2022, seeks to 
promote "green" financing, enhance this greened system and position Chile as a regional and global 
leader in green finance. The strategy is based on the development of the following three areas of 
action: (i) "greening" the system through the generation of information; (ii) promoting green 
financing; and (iii) enhancing this greened system and positioning Chile as a regional and global 
leader in green finance. To green the system through the generation of information, the strategy 
proposes to: (a) lay the foundations for the development of an env ironmentally sustainable activity 
classification system; (b) develop a framework for determining public and private climate change 
expenditure; and (c) promote the development of a metric that values national natural capital, taking 
into consideration ecos ystems and ecosystem services in the context of economic and financial 
measures for public and private use. In May 2022, the Preparatory Committee of the Environmentally 
Sustainable Activity Classification System (Green Taxonomy) began to hold meetings, le d by the 
Ministry of Finance. The Committee's objective is to examine and discuss certain structural elements 
required for the future development of a national Green Taxonomy, in order to create the information 
 
15 Government of Chile, Programa Chile Apoya . Viewed at: https://www.gob.cl/chileapoya/#medidas . WT/TPR/S/451/Rev.1  
- 19 - 
  necessary for the alignment of financial flow s towards a carbon neutral economy and sustainable 
development. Regarding the measurement of natural capital, the Ministry of Finance and the Ministry 
of the Environment have taken the lead in measuring the value of ecosystem services and integrating 
it into national accounts. Furthermore, the Ministry of Finance has proposed to continue to promote, 
develop and fine -tune green financial instruments and solutions, such as the issuance of thematic 
sovereign bonds and carbon pricing instruments.16 
1.19.  Despite the fact that Chile has historically been known for having a cautious fiscal policy based 
on a rule of structural balance and on the Fiscal Responsibility Law, the fiscal accounts have 
deteriorated in the last decade, including before the COVID -19 pandemic, as a result of higher 
spending and lower revenue relative to GDP from copper mining. This led to sustained fiscal deficits 
throughout the entire period under review and rising debt. The effective deficits of the Central 
Government fluctuated betw een 1.7% and 2.9% of GDP between 2015 and 2019 (between 1.5% 
and 2.7% for the General Government). The deficit grew considerable in 2020 to 7.3% of GDP for 
the Central Government (7.1% of GDP for the General Government) as, due to the pandemic and 
the ensu ing contraction in economic activity, Central Government revenues dropped to just 19.8% 
of GDP, down 1.8 percentage points on the previous year. Although economic activity recovered in 
2021 and Central Government revenues increased to 23.9% of GDP (26% for  the General 
Government), Central Government expenditure further increased, accounting for 28.5% of GDP 
(33.5% for the General Government) (Table 1.2). Higher expenditure as a result of the pandemic 
led in turn to a deterioration in the total and structura l fiscal deficit of the Central Government, which 
reached 7.7% and 10.7% of GDP in 2021, respectively.17 
1.20.  As a result of the larger deficit, the gross debt of the Central Government rose to 36.3% of 
GDP in 2021, its highest level since 1991 and up 8 percent age points on 2019, while the assets of 
the State Treasury declined by 4 percentage points compared with 2019, representing 5.3% of GDP.  
Table 1.2 Non-financial operations of the Central Government, 2015 -22 
 2015  2016  2017  2018  2019  2020  2021  2022  
Revenue  21.1 20.9 20.9 22.0 21.6 19.8 23.9 25.9 
Net tax revenue  17.4 17.2 17.2 18.1 17.7 16.0 18.8 21.1 
Income tax  7.4 6.8 7.0 7.6 7.3 6.2 7.8 10.3 
Value added tax  8.4 8.3 8.4 8.6 8.4 7.9 9.5 9.3 
Declared VAT  12.4 12.0 11.8 12.1 12.3 12.0 13.1 13.6 
Special credit for 
construction companies  -0.2 -0.3 -0.2 -0.2 -0.2 -0.2 -0.2 -0.2 
Refunds  -3.8 -3.4 -3.2 -3.3 -3.7 -4.0 -3.5 -4.1 
Taxes on specific products  1.5 1.5 1.5 1.4 1.4 1.4 1.1 0.8 
Tobacco, cigars and 
cigarettes  0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.4 
Fuel 0.9 0.9 0.9 0.9 0.9 0.9 0.6 0.4 
Extraction fees under the 
Fisheries Law  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Taxes on legal acts  0.2 0.3 0.3 0.3 0.3 0.2 0.2 0.3 
Taxes on foreign trade  0.2 0.2 0.2 0.2 0.2 0.1 0.2 0.2 
Other  -0.2 0.1 -0.2 0.0 0.1 0.2 -0.1 0.2 
Gross copper revenues  0.4 0.4 0.5 0.6 0.4 0.5 1.8 0.7 
Social contributions  1.4 1.4 1.5 1.5 1.5 1.5 1.2 1.0 
Grants  0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.1 
Property income  0.4 0.5 0.4 0.5 0.6 0.4 0.2 1.4 
Operating income  0.5 0.5 0.5 0.5 0.5 0.4 0.5 0.4 
Other revenue  0.8 0.8 0.7 0.8 0.8 0.8 1.2 1.2 
Expenditure  19.0 19.5 19.9 20.0 20.6 23.7 28.3 21.3 
Compensation of employees  4.5 4.7 4.8 4.9 5.0 5.3 4.9 4.7 
Consumer and producer 
goods and services  1.9 1.9 2.0 1.9 2.0 2.2 2.0 2.0 
Interest  0.7 0.7 0.8 0.9 0.9 1.0 0.9 1.0 
Subsidies and grants  7.7 8.1 8.4 8.4 8.8 11.0 16.8 9.4 
Social benefits  4.1 4.0 3.9 3.9 3.9 4.2 3.7 4.1 
Other  0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 
Gross operating balance (public 
saving)  2.0 1.2 0.9 2.0 0.9 -3.9 -4.4 4.7 
 
16 Ministry of Finance (2022), Estado de la Hacienda Pública 2022. Finanzas Verdes . Viewed at: 
https://biblio.hacienda.cl/estado -de-la-hacienda -publica/finanzas -verdes .  
17 Ministry of Finance (2022), Estado de la Hacienda Pública 2022. Política Fiscal . Viewed at: 
https://biblio.hacienda.cl/estado -de-la-hacienda -publica/politica -fiscal.  WT/TPR/S/451/Rev.1  
- 20 - 
   2015  2016  2017  2018  2019  2020  2021  2022  
Net acquisition of non -financial 
assets  4.3 4.0 3.8 3.7 3.8 3.4 3.3 3.5 
Sale of physical assets  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Investment  2.4 2.3 2.2 2.0 2.1 1.8 1.8 1.5 
Capital transfers  1.9 1.8 1.6 1.6 1.8 1.6 1.5 2.0 
Total revenue  21.2 20.9 20.9 22.1 21.6 19.8 23.9 25.9 
Total expenditure  23.3 23.6 23.7 23.7 24.5 27.1 31.6 24.8 
Net lending/Net borrowing 
(effective  surplus/deficit)  -2.2 -2.7 -2.8 -1.7 -2.9 -7.3 -7.7 1.1 
Memorandum item          
General Government          
Total revenue  23.0 22.7 22.9 24.1 23.8 22.0 26.0 28.1 
Total expenditure  25.1 25.4 25.5 25.6 26.5 29.1 33.5 26.8 
Net lending/Net borrowing  -2.1 -2.7 -2.6 -1.5 -2.7 -7.1 -7.5 1.4 
Municipalities          
Total revenue  3.6 3.8 3.8 4.0 4.2 4.1 3.8 3.9 
Total expenditure  3.5 3.7 3.7 3.8 4.0 3.9 3.6 3.7 
Net lending/Net borrowing  0.1 0.1 0.1 0.2 0.1 0.2 0.2 0.2 
Public debt (% of GDP)  
Total public debt  16.1 21.4 24.9 23.8 26.7 36.1 32.4 38.6 
Domestic debt  12.9 17.4 20.3 18.9 21.0 27.7 21.0 24.9 
Foreign debt  3.2 4.0 4.6 4.9 5.7 8.3 11.4 13.7 
Source:  Central Bank of Chile.  
1.21.  In 2022, as economic growth recovered, the authorities resumed fiscal consolidation. This 
required an expenditure adjustment, which was partly offset by measures such as those included 
under the Chile Apoya  plan. Central Government expenditure contracted b y more than 20% in 
comparison with the previous year, as a result of the end of the temporary support measures 
introduced to mitigate the economic effects of the pandemic. Central Government expenditure 
accounted for only 24.8% of GDP (26.8% for the Genera l Government), down 6.8 percentage points 
on 2021. Revenue, however, increased by 2 percentage points, accounting for 25.9% of GDP (28.1% 
for the General Government). This resulted in surpluses of 1.1% of GDP for the Central Government 
and 1.4% of GDP for the General Government. The gross debt of the Central Government grew 
during the period under review, rising from 16.1% of GDP in  2015 to  38.6%  in December 2022. The 
estimated amortizations for 2023 amount to USD 6,802 million. At the end of 2022, Chilean debt 
had an average maturity of 11.4 years.18 
1.22.  Chile has two sovereign funds, the Economic and Social Stabilization Fund (FEES) and the 
Pension Reserve Fund (FRP), both of which were created under the Fiscal Responsibility Law of 2006. 
FEES was established to finance fiscal deficits that could arise in periods of low growth and/or of low 
copper prices. FEES also allows for the amortization of public debt and the financing of contributions 
to the FRP. In 2022, the Ministry of Finance decided that the FEES res ources would be used in the 
event of exceptional macroeconomic risks that produce substantial fiscal deficits. Each year, FEES 
receives the positive balance that remains after deducting contributions to the FRP from the effective 
fiscal surplus, discountin g, where appropriate, public debt amortizations and advance contributions 
made to the Fund in the previous year. The aim of the FRP is to supplement the financing of fiscal 
obligations in the area of pensions and social security.19 
1.23.  During the crisis caused  by the pandemic, the authorities made large -scale use of FEES 
resources to finance assistance programmes for the population and companies. In 2020 and 2021, 
withdrawals from FEES amounted to USD 4,090 million and USD  6,197  million, respectively, and the 
market value of the Fund decreased from USD  12,233  million in 2019 to USD 2,457 million in 2021.20 
In 2022, the trend was reversed, and contributions totalling USD 5,998 million were made to FEES, 
the market value of which increased to USD 7,514 million. In  the period between the creation of 
FEES and April 2023, total contributions amounted to USD 27,763.4 million and withdrawals to 
USD 24,245.1  million; total interest earned was USD 3,431.6 million and capital losses totalled 
 
18 Information from the Ministry of Finance. Viewed at: https://www.hacienda.cl/areas -de-
trabajo/finanzas -internacionales/oficina -de-la-deuda -publica .  
19 Information from the Ministry of Finance. Viewed at: https://www.hacienda.cl/area s-de-
trabajo/finanzas -internacionales/fondos -soberanos .  
20 The value of FEES peaked in 2017, when it stood at USD 14,739 million. Ministry of Finance, Fondo de 
Estabilización Económica y Social, Informe abril 2023 . Viewed  at: https://www.hacienda.cl/areas -de-
trabajo/finanzas -internacionales/fondos -soberanos/fondo -de-estabilizacion -economica -y-social/informes -
mensuales/informe -abril-2023. WT/TPR/S/451/Rev.1  
- 21 - 
  USD 829.7 million, which put th e value of FEES at USD 7,745.9 million (less USD 33.7 million for 
administrative costs).21 
1.24.  The FRP was set up on 28  December  2006, with an initial contribution of USD 604.5  million, 
in order to support the financing of obligations arising from the state -guaranteed basic solidarity 
pensions for old age and disability, as well as solidarity pension contributions. Currently, the FRP 
resources are used to supplement payments for the universal guaranteed pension and the disability 
solidarity pillar. Those resour ces are increased each year by a minimum amount equivalent to 0.2% 
of the previous year's GDP. As was the case for FEES, during the pandemic, withdrawals were made 
from the FRP in the order of USD 1,576.5 million in  2020, USD 2,959.8 million in 2021 and 
USD 268.9 million in 2022. Between its creation in December 2006 and the end of April 2023, the 
FRP received contributions totalling USD  10,008.7  million and withdrawals amounted to 
USD 6,220.7  million. The market value of the  FRP was USD  6,816.6 million at the end of April  2023, 
compared with its highest value of USD  11,435.5 million in August 2020.22 
1.3  Monetary and exchange rate policies  
1.25.  Pursuant to Article 3 of the Constitutional Organic Law of the Central Bank of Chile23, one of 
the Central Bank of Chile's objectives is to ensure the stability of the currency, which involves 
keeping inflation low and stable over time. Another objective is to promote the stability and efficiency 
of the financial system, and ensure the norm al functioning of internal and external payments. To 
achieve its objectives, the Central Bank of Chile must, inter alia , regulate the amount of money in 
circulation and credit in the economy, to ensure that they are sufficient for individuals, companies 
and institutions to carry out their transactions.24 
1.26.  Since 1999, the Central Bank of Chile has implemented a monetary policy strategy with 
medium -term inflation targets and a flexible exchange rate policy. The inflation target established 
under this strategy is for inflation, regardless of its current level, to remain around 3% over a 
two-year horizon.25 This is calculated on the basis of annual inflation, measured as the percentage 
change in the consumer price index (CPI) over a 12 -month period. To meet the i nflation target, the 
main instrument used by the Central Bank of Chile is the monetary policy interest rate, which is set 
at each monetary policy meeting. The Central Bank of Chile carries out different operations to 
influence the overnight interbank lendi ng rate, so that it is around the monetary policy interest rate, 
which in turn has an impact on the demand for and supply of money. All this has a knock -on effect, 
albeit a delayed one, on prices in the economy. The instruments used by the Central Bank to keep 
the monetary policy interest rate at the desired level include open market operations, the purchase 
and sale of short -term promissory notes, and lines of credit and liquidity deposits (expanded 
facilities).Eight monetary policy meetings are held  each year, at which it is decided whether to 
maintain, lower or raise the monetary policy interest rate, and four Monetary Policy Reports are 
presented, which contain an analysis of the national and international macroeconomic scenario, and 
growth and inflation  forecasts.  
1.27.  During the period under review, there were three main phases in the implementation of the 
monetary policy. Between 2015 and 2016, of the policy was moderately contractionary, with the 
monetary policy interest rate reaching an average of 3.5% in  2016. This phase was followed by a 
more accommodative policy approach between 2017 and 2019, which led to a stable monetary policy 
interest rate of 2.5% between June 2017 and September 2018.26 After this came a period of 
 
21 Ministry of Finance, Fondo de Estabilización Económica y Social, Informe abril 2023 . Viewed at: 
https://www.hacienda.cl/areas -de-trabajo/finanzas -internacionales/fondos -soberanos/fondo -de-estabilizacion -
economica -y-social/informes -mensuales/informe -abril-2023. 
22 Information provided by the authorities and the Ministry of Finance, Fondo de Reserva de Pensiones, 
Informe abril de 2023. Viewed at:  https://www.hacienda.cl/areas -de-trabajo/finanzas -internacionales/fondos -
soberanos/fondo -de-reserva -de-pensiones/informes -mensuales/informe -abril-2023. 
23Law No. 18.840 of 10 October 1989 (and amendments thereto).  
24 Information from the Central Bank of Chile. Viewed at: https://www.bcentral.cl/web/banco -central/el -
banco/gobierno -corporativo/funciones -del-banco . 
25 Central Bank of Chile, La política monetaria del Banco Central de Chile en el marco de metas de 
inflación . Viewed at: https://www.bcentral.cl/contenido/ -/detalle/politica -monetaria -del-banco -central -de-chile-
en-el-marco -de-metas -de-inflacion . 
26 Information from the Central Bank of Chile. Viewed at: 
https://si3.bcentral.cl/Siete/ES/Siete/Cuadro/CAP_TASA_INTERES/MN_TASA_INTERES_09/TPM_C1?cbFechaIni
cio=2010&cbFechaTermino=2023&cbFrecuencia=MONTHLY&cbCalculo=NONE&cbF echaBase= .  WT/TPR/S/451/Rev.1  
- 22 - 
  moderate increases in the monetary  policy interest rate, which rose to 3.0% in May 2019. The 
inflationary implications of a weaker economic cycle in 2019 resulted in a new series of decreases in 
the monetary policy interest rate, which stood at 1.75% in December 2019. As part of the policy  to 
tackle the COVID -19 pandemic, it was decided to lower the monetary policy interest rate to its 
technical minimum of 0.5% in March 2020, and to implement a series of measures to maintain the 
proper functioning of markets and boost credit. Particularly i mportant in this respect was the launch 
of the Conditional Credit Facility for Increased Loans (FCIC) which, together with other measures 
adopted by the Government, enabled sizeable credit flows to companies, at times when uncertainty 
was high at the begin ning of the pandemic. The FCIC comprised three steps and its impact on 
companies has been documented in several boxes in the Monetary Policy Reports and in a document 
in the Financial Economic Series of the Central Bank.  
1.28.  In 2021, a high level of liquidity from pension fund withdrawals and universal tax transfers 
was injected into the Chilean economy. All this led to a significant increase in domestic spending, 
particularly household consumption, which gave rise to inflationary pressure that was inconsistent  
with the inflation target. In addition to this shock, there was the impact of the pandemic on transport 
costs and global distribution chains, as well as the effects of the conflict in Ukraine on the prices of 
various commodities. In this context, the Cent ral Bank of Chile raised the monetary policy interest 
rate significantly. Between July 2021 and October 2022, the monetary policy interest rate increased 
11 times, reaching 11.25%. The monetary policy interest rate then stabilized at this level and, as of 
June 2023, it remained at 11.25%. In its Monetary Policy Report of June 2023, the Central Bank 
indicated that, if the recent trends in the Chilean economy continue, in the short term, a process to 
reduce the monetary policy interest rate would be initiated . In line with the movements of the 
monetary policy interest rate, market interest rates fell markedly between 2019 and July 2021, 
before increasing significantly between July 2021 and October 2022, after which they stabilized. The 
interest rate increases were considered indispensable to efforts to combat inflation, as it was 
necessary to redress the macroeconomic imbalances caused by domestic overspending. According 
to the authorities, in addition to high inflation, these imbalances were evidenced by a lar ge current 
account deficit and the widest activity gap in recent decades. As part of the correction of these 
imbalances, the activity gap was reduced and annual GDP growth fell from levels of around 11% to 
figures that may be slightly negative in 2023. The  average spread between interest rates on loans 
and deposits has varied relatively little in the period under review, between 1.5 and 2.2 percentage 
points, which reflects the stability of the Chilean financial system and its high degree of 
intermediation,  as was noted in the previous review  (Table  1.3). 
Table 1.3 Main monetary indicators, 2015 -22 
 2015  2016  2017  2018  2019  2020  2021  2022  
Monetary aggregates (CLP billion)  
Monetary base (average)  9,203  9,919  10,393  11,189  12,122  18,437  27,529  21,376  
Currency in circulation 
(average)  5,336  5,771  6,085  6,344  6,712  9,256  14,056  13,044  
M1 (average)  26,153  27,793  30,132  33,451  37,475  53,143  75,765  65,346  
M2 (average)  103,944  114,432  119,772  131,012  141,695  155,243  168,757  177,544  
M3 (average)  173,566  191,444  205,256  218,886  242,960  264,427  284,469  307,647  
Monetary base (balances, 
end of period)  9,152  10,342  11,106  11,296  12,335  30,256  21,456  17,641  
Currency in circulation 
(balances, end of period)  5,858  6,275  6,528  6,740  7,575  12,180  15,210  11,608  
M1 (balances, end of 
period)  29,419  30,319  33,566  36,856  43,633  68,573  79,301  59,295  
M2 (balances, end of 
period)  112,193  120,006  126,093  140,228  153,395  162,782  180,223  187,458  
M3 (balances, end of 
period)  183,811  199,819  209,343  232,348  257,728  265,669  304,810  314,838  
Interest rates (annual average)  
Commercial loans (1 -3 
months)  5.7 5.6 4.6 4.2 4.1 3.1 3.5 10.7 
Commercial deposits (1 -3 
months)  3.6 3.8 2.9 2.7 2.5 0.9 1.3 8.6 
Interest rate spread 
between lending and 
deposits (1 -3 months)  2.2 1.9 1.7 1.5 1.6 2.2 2.2 2.1 
Monetary policy rate  3.1 3.5 2.7 2.5 2.5 0.8 1.2 8.5 
Inflation  
Consumer price index 
(annual average)  91.8 95.3 97.3 100.0  102.3  105.4  110.1  123.0  
Consumer price index 
(end of period)  93.4 95.9 98.1 100.6  103.7  106.7  114.4  129.0  WT/TPR/S/451/Rev.1  
- 23 - 
   2015  2016  2017  2018  2019  2020  2021  2022  
Inflation rate (%, end of 
period)  4.4 2.7 2.3 2.6 3.0 3.0 7.2 12.8 
Exchange rate (period average)  
Exchange rates (CLP/USD)  654.25  676.83  649.33  640.29  702.63  792.22  759.27  872.33  
Real effective exchange 
rate (index)  91.0 92.6 95.8 97.1 92.5 85.0 87.9 84.8 
Variation in the real 
exchange rate (%)  -1.0 1.8 3.4 1.4 -4.8 -8.2 3.4 -3.5 
Source:  Central Bank of Chile and the IMF.  
1.29.  Chile continues to follow a floating exchange rate regime, under which the Central Bank of 
Chile is authorized to intervene in the exchange market. These interventions are carried out on an 
exceptional basis and in situations in which the normal functioning of the financial markets i s called 
into question and there are risks for the rest of the financial system. Such interventions must be 
compatible with the inflation target, so that their monetary impact is always sterilized. Furthermore, 
the time frames and amounts involved are expl icitly defined. The nominal exchange rate appreciated 
slightly between 2015 and 2018, resulting in an appreciation of the real exchange rate of around 
6.6% (Table 1.3). This trend was reversed in 2019 and, until the end of 2022, the nominal exchange 
rate d epreciated by 20% in nominal terms and by  almost 13% in real terms compared with 2018. 
During the first half of 2023, the nominal and real exchange rate appreciated by around 8% and 
10%, respectively.27 The authorities indicated that this was due to a cont ext in which local 
uncertainty had fallen from the high levels that it had reached between the end of 2019 and part of 
the second half of 2022.  
1.30.  After trending downwards between 2015 and 2017, inflation began to edge up, albeit very 
slightly, in 2018. In ge neral, the change in the CPI remained below or was equal, as an annual 
average, to the inflation target of 3%. However, the CPI began to increase in 2021, topping 3%. 
This was due to the effects of the significant rise in domestic spending as a consequence  of the 
liquidity provided to households, and higher oil and food prices, as well as global value chain  
disruption. Since 2021, inflation has remained high, peaking at 14.1% in August 2022.28 In 
May 2023, the annual change in the CPI decreased to 8.7% and the change in core CPI was 9.9% . 
These levels continue to be well above the target of 3%. The forecasts contained in the 
Monetary  Policy Report of June 2023 suggest that total inflation will reach 4.2% in 2023 and will 
settle at 3% towards the second half of 2024, before the end of the two -year monetary policy 
horizon. Core inflation is expected to close 2023 at 6.5% and also be around 3% in the second  half 
of 2024.29 According to the Central Bank of Chile, the economy has been making progress in 
addressing  the macroeconomic imbalances that have accumulated in recent years. This has made it 
possible to reduce inflation in line with forecasts, further consolidating its convergence towards the 
target of 3%. At its monetary policy meeting in June 2023, the Cent ral Bank of Chile stated that the 
monetary policy interest rate had remained contractionary for several quarters, which had 
contributed significantly to the decline in inflation. While the risks associated with this persist, they 
have become more balanced.  The Central Bank of Chile considers that the most recent developments 
in the economy have set it on the right course. If these trends continue, the monetary policy rate 
 
27 For the nominal and real exchange rate, the figures available until June and May 2023, respectively, 
are considered.  
28 In the Monetary Policy Reports of December 2021, March 2022, June 2022 and September 20 22, the 
Central Bank of Chile estimated the effects of internal and external factors on actual and/or expected inflation 
developments. Viewed, respectively, at: 
https://www.bcentral.cl/documents/33528/3314166/IPoM_Diciembre_2021.pdf/565eddcb -6f73-054e-4b98-
0608eef904f0?t=1655149278850 ; 
https://www.bcentral.cl/documents/33528/3456057/IPoM_marzo_2022.pdf/a3b89623 -a366-ed9a-63bb-
6d719102eab2?t=1655149272047 ; 
https://www.bcentral.cl/documents/33528/3584036/IPoM_Junio_2022.pdf/74057e9c -e2f9-6291-e86e-
70556c07e46f?t=1654784580843 ; and 
https://www.bcentral.cl/documents/33528/3 718177/IPoM_Septiembre_2022.pdf/85c3d8c9 -6ffc-99d0-0534-
bc6602dd7014?t=1662668094107 .  
29 Central Bank of Chile, Informe de Política Monetaria , June 2023. Viewed at: 
https://www.bcentral.cl/documents/33528/4263112/IPoM -junio-2023.pdf/7f506eae -a28d-b93b-f160-
518045201fee .  WT/TPR/S/451/Rev.1  
- 24 - 
  will decrease in the short term. The magnitude and duration of this decrease will depe nd on the 
evolution of the macroeconomic scenario and its implications for inflation.30 
1.4  Balance of payments  
1.31.  The balance of trade in goods was in surplus in each year of the period under review. In 
general terms, the balance of trade in goods has historical ly been positive in Chile. Mining exports 
account for the largest share of total exports. The trade surplus trended upwards between 2015 and 
2017, before declining in 2018 and 2019, mainly due to lower mining exports, principally of copper. 
The larger surp lus recorded in 2020 was primarily the result of the sharp drop in imports caused by 
the COVID -19 pandemic, although exports also grew by around 7.6% in value terms, thanks in large 
part to an increase in copper exports. In 2022, exports grew, driven by sh ipments of industrial 
products. However, the strong recovery in goods imports led to a deterioration in the trade balance 
in goods. The surplus shrank from USD 10,470 million in 2021 to USD  3,807 million in 2022 
(Table  1.4). 
1.32.  Chile has traditionally recorde d a deficit in the balances of services and income. During the 
pandemic, the deficit in the balance of services narrowed, but grew again in 2021 and 2022. As a 
consequence of the deficit in the balances of services and income, the balance -of-payments curre nt 
account  recorded a deficit in each year of the period under review. In 2020, imports of goods and 
services fell sharply, which resulted in a considerable drop in the current account deficit, from 
USD 14,505 million in 2019 to USD  4,952 million in 2020. In 2021, as the economy recovered and 
imports increased, the current account deficit rose to USD 23,193 million (7.5% of GDP), and 
continued to grow in 2022 to USD 27,102 million (9.0% of GDP).  
1.33.  Chile is a major recipient of foreign direct investment (FDI),  particularly in the mining sector. 
However, profit repatriation has resulted in an income balance that is deeply in deficit. Repatriated 
profits were higher than net FDI flows in each year of the period under review. Cumulative net 
inflows of FDI between 2015 and 2022 were some USD 104,133 million, peaking at nearly 
USD 20,865 million in 2022. Chile is also a major foreign investor, with flows of USD  33,120  million 
accumulated between 2020 and 2022.  
Table 1.4 Balance of payments, 2015 -22  
(USD million)  
 2015  2016  2017  2018  2019  2020  2021  2022  
I. Current account  -6,631  -6,534  -7,616  -13,265  -14,505  -4,952  -23,193  -27,102  
A. Goods and services  -1,995  -528 1,880  -2,933  -5,069  11,444  -1,848  -11,017  
Goods  3,576  4,951  7,490  4,409  3,016  18,917  10,470  3,807  
Exports  62,120  60,769  68,904  74,838  68,792  74,024  94,774  98,548  
Imports  58,544  55,819  61,414  70,430  65,776  55,108  84,304  94,741  
Services  -5,571  -5,479  -5,611  -7,341  -8,085  -7,472  -12,318  -14,824  
Exports  8,557  8,600  9,194  9,226  8,462  5,554  5,973  8,529  
Imports  14,128  14,079  14,804  16,567  16,547  13,027  18,291  23,353  
B. Income (primary 
income)  -5,984  -6,936  -10,756  -12,162  -10,411  -15,865  -18,518  -16,520  
Investment income  -5,657  -6,655  -10,330  -11,608  -9,758  -15,315  -17,948  -15,913  
Direct investment 
income  -5,730  -6,760  -10,064  -11,818  -10,311  -15,565  -16,858  -13,266  
Abroad  2,540  3,162  4,326  5,106  5,759  293 6,204  10,664  
In Chile  8,270  9,922  14,390  16,924  16,070  15,859  23,062  23,930  
Portfolio investment 
income  -120 -20 -274 442 704 92 -1,105  -2,014  
Dividends  1,601  1,555  1,425  2,184  2,432  2,322  1,706  1,299  
Interest  -1,721  -1,575  -1,699  -1,742  -1,728  -2,230  -2,812  -3,313  
Other investment 
income  194 126 8 -231 -151 158 15 -633 
Inflows  590 647 747 780 944 742 450 652 
Outflows  396 522 740 1,011  1,095  584 435 1,285  
C. Current transfers 
(secondary income)  1,348  929 1,260  1,829  974 -532 -2,827  434 
Government  1,882  1,522  2,029  3,200  2,591  2,464  3,116  2,944  
Other sectors  -534 -593 -769 -1,371  -1,616  -2,996  -5,943  -2,510  
II. Capital account  695 9 89 43 1,025  1 2 2 
III. Financing 
capacity/need  -5,936  -6,526  -7,527  -13,223  -13,481  -4,951  -23,191  -27,100  
 
30 Central Bank of Chile, Reunión de Política Monet aria, June 2023. Viewed at: 
https://www.bcentral.cl/contenido/ -/detalle/comunicado -rpm-junio-2023.  WT/TPR/S/451/Rev.1  
- 25 - 
   2015  2016  2017  2018  2019  2020  2021  2022  
IV. Financial account  -3,917  -4,231  -6,158  -11,339  -10,834  -7,717  -24,752  -25,387  
A. Direct investment  -1,915  -3,487  -2,702  -6,096  -3,234  -5,049  -1,987  -8,089  
Assets  15,851  7,876  2,535  1,847  10,345  6,398  13,946  12,776  
Equity shares  5,127  3,624  1,221  3,997  7,532  5,759  7,958  3,948  
Reinvested earnings  1,305  2,138  2,768  3,236  4,333  -1,148  3,675  8,530  
Debt securities  9,419  2,114  -1,454  -5,386  -1,519  1,787  2,313  298 
Liabilities  17,766  11,363  5,237  7,943  13,579  11,447  15,933  20,865  
Equity shares  6,494  6,148  2,075  2,476  6,361  5,245  10,990  8,851  
Reinvested earnings  1,488  2,663  4,105  6,262  5,372  5,267  4,528  10,777  
Debt securities  9,785  2,552  -943 -795 1,846  936 415 1,237  
B. Portfolio investment  -2,152  -2,493  4,801  -2,696  -10,608  -13,579  -33,809  -8,397  
Assets  495 295 14,209  2,669  833 -6,420  -1,384  5,918  
Liabilities  2,647  2,788  9,408  5,365  11,441  7,160  32,425  14,315  
C. Financial derivatives  722 690 65 882 1,501  2,536  -17 644 
D. Other investment  -783 -746 -5,572  -4,825  1,659  11,270  -1,150  -343 
Assets  -3,403  189 -1,239  -892 3,108  9,511  10,299  8,187  
Trade credit  -1,823  406 842 218 -19 2,951  6,048  286 
Loans  -702 -94 -165 -210 -557 507 1,983  3,334  
Currency and deposits  -1,278  236 -1,872  -884 2,666  6,186  2,266  4,063  
Other assets  400 -360 -44 -17 1,018  -133 1 504 
Liabilities  -2,620  934 4,333  3,933  1,449  -1,760  11,449  8,531  
Trade credit  -1,242  245 1,140  746 -1,269  -1 3,529  -1,341  
Loans  -1,567  761 2,516  2,504  2,343  -1,282  5,449  5,957  
Currency and deposits  202 -71 676 682 375 -475 93 3,899  
Other liabilities  -13 0 0 0 0 0 0 0 
SDR allocations  0 0 1 1 -1 -1 2,378  15 
E. Reserve assets  211 1,805  -2,750  1,397  -152 -2,895  12,211  -9,201  
V. Errors and 
omissions  2,019  2,295  1,369  1,883  2,646  -2,765  -1,561  1,713  
VI. Balance of 
payments position  211 1,805  -2,750  1,397  -152 -2,895  12,211  -9,201  
Source:  Central Bank of Chile.  
1.34.  In September  2022, external public debt stood at USD 41,168 million, equivalent to roughly 
13.7% of GDP. This represents a sharp rise when compare d with the situation before the pandemic. 
In 2019, external public debt was equivalent to 5.7% of GDP, and 3.2% in 2015. The debt increase 
is largely due to the expansionary policies implemented to counteract the negative effects of the 
pandemic.  
1.5  Merchandise trade and investment flows  
1.5.1   Composition of trade  
1.35.  Imports of goods grew faster than exports during the period 2015 -22. While the increase in 
imports of goods, in terms of value in USD, was 68.7% in that period, equivalent to an annual 
average gro wth rate of 7.7%, exports were up 56.9%, equivalent to an annual average growth rate 
of 6.7%.  
1.36.  Chile's merchandise exports mainly consist of primary products, mostly primary and 
processed agricultural and mining products. The share of mining products (miner al products and 
base metals) in total exports decreased slightly during the review period. Mining products accounted 
for 52.7% of Chilean merchandise exports in 2022 (Table A1.1 and Chart 1.1). Copper ore and 
refined copper jointly accounted for 45.3% of t he country's exports in 2022, compared to 48.2% in 
2015. It should be noted that, in 2022, exports of lithium concentrate grew by over 500%, which 
had a considerable impact on mining exports, largely offsetting the drop in copper exports in that 
year. The share of lithium exports in total exports grew from  1.3% in 2021 to 8.2% in 2022. The 
share of agricultural products (WTO classification) in total exports contracted during the period under 
review, from  25.2%  in 2015 to 21.9% in 2022. Agricultural exports,  according to the 
WTO classification, consist mainly of wine, fruit, salmon and other fish, and agricultural raw 
materials, particularly forestry products.  
1.37.  The share of imports of non -agricultural products (WTO classification) in total imports declined 
during the period under review, while imports of mineral products rose considerably, with their share 
in total imports increasing from 15.4% in 2015 to 23.2% in 2022. This was mainly due to the 
increase in fuel prices. Among imports, the leading category cont inued to be machinery and transport 
equipment, which accounted for 30.4% of imports in 2022, compared to  35.6% in 2015. The share WT/TPR/S/451/Rev.1  
- 26 - 
  of chemicals in total imports increased, whereas the share of foodstuffs fell slightly (Table  A1.2 and 
Chart  1.1). 
Chart 1.1 Merchandise trade by main product, 2015 and 2022  
 
Source:  WTO Secretariat calculations, based on the UN Comtrade database.  
1.5.2   Direction of trade  
1.38.  In 2022, China remained Chile's main export market, absorbing 39.4% of its exports, 
compared with 26.1% in 2015. The percentage of exports destined for the United  States grew 
slightly from 13.2% in 2015 to 13.9% in 2021. The European Union (27) was the des tination for 
7.8% of Chile's exports, compared with 12.1% in 2015 (Table A1.3 and Chart 1.2), while the share 
destined for Japan decreased from 8.5% to 7.6%. The proportion of exports going to other countries 
WT/TPR/S/451/Rev.1  
- 27 - 
  of the American continent declined slightly dur ing the review period, from 20% in 2015 to 16.3% 
in 2022.  
1.39.  During the period under review, China continued to be the main source of Chile's imports, 
accounting for 25.3% of total imports in 2022 (23.6% in 2015). The second provider was the 
United  States wit h 20.9% of total imports (19.0% in 2015), followed by the European  Union with 
11.1% in 2022, Brazil and Argentina (Table A1.4 and Chart 1.2).  
Chart 1.2 Merchandise trade by trading partner, 2015 and 2022  
 
Source: WTO Secretariat calculations, based on the UN Comtrade database.  
WT/TPR/S/451/Rev.1  
- 28 - 
  1.5.3   Trade in services  
1.40.  The deficit that Chile traditionally runs in its trade in services widened between 2015 and 
2019, from USD 5,571 million in 2015 to USD 8,085 million in 2019 (Table 1.5 ). In 2020, as a result 
of the pandemic and its severe impact on services categories, exports and imports of services both 
fell. There was a general decline in the components of both exports and imports of services, in 
particular travel. Furthermore, for b oth exports and imports, it is important to highlight the decrease 
in air passenger transport services and aircraft operating leasing services.  
1.41.  The deficit shrank in 2020 (USD 7,472 million) before increasing substantially in 2021 
(USD  12,318 million) and 2022 (USD 14,824 million). In 2021, exports grew on the back of transport 
services, most notably air freight and services for maritime vessels. Performance was also affected 
by the rise in exports of information services. The growth of imports was also att ributable to 
transport services, predominantly maritime freight, in line with the performance of foreign trade in 
goods and the world freight market. Information services, particularly digital information services, 
and business services also contributed to  this increase, albeit to a lesser extent. In 2022, the growth 
in both exports and imports was driven by an increase in all their categories. For exports, the most 
significant rise was in air transport services, mainly air passenger transport services. An increase in 
aircraft operating leasing services and in business, professional and technical services was also 
observed. Meanwhile, imports were led by maritime freight services, in line with the high 
international prices in that market. Freight payments in  2022 tripled compared with the levels prior 
to the pandemic. The growth in imports of financial services and tourism services was also 
noteworthy.  
Table 1.5 Trade in services, 2015 -22 
(USD million)  
 2015  2016  2017  2018  2019  2020  2021  2022  
Exports  8,557  8,600  9,194  9,226  8,462  5,554  5,973  8,529  
Transport  3,245  3,066  3,318  3,413  3,312  2,537  3,026  4,025  
Maritime transport  1,205  992 1,052  1,008  926 772 937 1,194  
Freight  280 104 170 157 152 125 154 336 
Other  926 888 882 851 773 646 783 857 
Other transport  2,040  2,074  2,266  2,405  2,386  1,765  2,089  2,832  
Passenger  931 1,079  984 1,040  1,014  428 422 883 
Freight  831 732 982 1,008  1,018  1,097  1,467  1,698  
Other  278 263 300 356 353 240 200 251 
Travel  2,497  2,683  3,152  2,897  2,302  413 113 1,024  
 Business  426 423 369 413 320 38 13 130 
 Personal  2,071  2,260  2,784  2,483  1,983  375 100 894 
Insurance and pension 
services  290 313 305 297 317 355 402 389 
Financial services  185 189 222 223 225 243 255 306 
Charges for the use of 
intellectual property, n.i.e.  42 38 50 46 45 40 67 65 
Telecommunications, 
computer, and information 
services  317 344 347 375 383 380 494 507 
Telecommunications  78 61 61 48 40 23 20 23 
Computer and information  239 283 285 327 343 357 474 485 
Other business services  1,567  1,504  1,337  1,526  1,497  1,262  1,273  1,787  
Professional and business 
management consulting 
services  723 554 552 731 689 661 786 1,025  
Other business services  843 951 785 795 808 601 487 761 
Personal, cultural and 
recreational services  34 37 40 43 49 40 52 65 
Other services  381 424 422 407 331 284 291 360 
Imports  14,128  14,079  14,804  16,567  16,547  13,027  18,291  23,353  
Transport  4,601  4,265  4,700  5,056  4,939  4,409  8,470  10,772  
Maritime transport  3,036  2,589  2,754  3,039  3,022  3,012  6,477  8,191  
Freight  2,582  2,369  2,523  2,834  2,808  2,847  6,265  7,885  
Other  454 220 231 205 214 166 213 306 
Other transport  1,565  1,676  1,946  2,017  1,918  1,396  1,992  2,581  
Passenger  581 633 814 788 732 217 285 637 
Freight  717 722 796 851 810 872 1,401  1,471  
Other  267 321 336 378 376 307 307 473 
Travel  1,987  2,153  2,329  2,393  2,459  539 303 1,718  
Business  260 280 259 292 293 45 39 216 
Personal  1,727  1,874  2,070  2,101  2,166  495 265 1,502  
Insurance and pension 
services  453 424 512 382 400 437 661 678 WT/TPR/S/451/Rev.1  
- 29 - 
   2015  2016  2017  2018  2019  2020  2021  2022  
Financial services  1,183  1,182  1,115  1,336  1,380  1,238  1,365  2,914  
Charges for the use of 
intellectual property, n.i.e.  1,635  1,731  1,709  2,034  1,879  1,512  1,690  1,325  
Telecommunications, 
computer, and information 
services  1,620  1,628  1,657  2,069  2,113  2,046  2,703  2,689  
Telecommunications  133 119 107 105 81 81 77 80 
Computer and information  1,487  1,509  1,549  1,964  2,032  1,965  2,626  2,609  
Other business services  2,312  2,400  2,446  2,870  2,925  2,504  2,757  2,797  
Professional and business 
management consulting 
services  1,604  1,575  1,672  1,867  1,929  1,900  2,251  2,076  
Other business services  708 825 774 1,004  996 604 506 721 
Personal, cultural and 
recreational services  38 32 41 40 40 8 5 52 
Other services  300 264 295 385 414 333 338 409 
Trade balance  -5,571  -5,479  -5,611  -7,341  -8,085  -7,472  -12,318  -14,824  
Transport  -1,356  -1,199  -1,382  -1,644  -1,627  -1,872  -5,444  -6,746  
Maritime transport  -1,830  -1,597  -1,701  -2,031  -2,096  -2,241  -5,540  -6,997  
Freight  -2,302  -2,265  -2,352  -2,677  -2,655  -2,721  -6,110  -7,548  
Other  472 667 651 646 559 481 570 551 
Other transport  475 398 320 388 468 369 97 251 
Passenger  350 446 169 252 282 211 137 247 
Freight  114 10 186 158 208 225 66 227 
Other  10 -57 -36 -22 -22 -67 -106 -223 
Travel  511 530 823 503 -157 -127 -190 -695 
 Business  167 144 109 121 26 -7 -25 -87 
 Personal  344 386 714 382 -183 -120 -165 -608 
Insurance and pension 
services  -162 -110 -207 -85 -83 -82 -259 -288 
Financial services  -998 -993 -893 -1,114  -1,155  -995 -1,110  -2,608  
Charges for the use of 
intellectual property, n.i.e.  -1,593  -1,692  -1,659  -1,988  -1,833  -1,472  -1,622  -1,259  
Telecommunications, 
computer, and information 
services  -1,303  -1,284  -1,310  -1,694  -1,730  -1,666  -2,209  -2,182  
Telecommunications  -55 -58 -46 -57 -41 -58 -57 -58 
Computer and information  -1,248  -1,226  -1,264  -1,638  -1,689  -1,608  -2,152  -2,124  
Other business services  -745 -896 -1,109  -1,345  -1,428  -1,242  -1,484  -1,010  
Professional and business 
management consulting 
services  -880 -1,022  -1,120  -1,136  -1,240  -1,239  -1,465  -1,051  
Other business services  135 126 11 -209 -188 -3 -19 40 
Personal, cultural and 
recreational services  -5 5 -1 3 10 32 47 13 
Other services  81 161 127 22 -82 -49 -46 -48 
Source:  Central Bank of Chile.  
1.5.4   Foreign direct investment  
1.42.  During the period under review, Chile continued to receive large FDI flows. According to the 
information provided by the authorities, FDI inflows between 2015 and 2021 amounted to 
USD 80,345  million. Of  the FDI received by Chile in that period, 36.4% was c hannelled to the 
electricity, gas and water sector, 20.2% to the mining sector, followed by the financial services 
sector (19.3%) and the commerce sector (7.5%) (Table  1.6). Chile was also a dynamic investor 
abroad during the period under review, with outw ard FDI of around USD  59,613  million between 
2015 and 2021. Chilean investment abroad was channelled into various sectors, with the main 
category of outward FDI being "unassigned" (33.7% of the total), which is an adjustment category. 
Other important areas  of investment abroad were electricity, gas and water (21.2% of the total); 
financial services (14.9%); manufacturing (8.4%); transport and storage (7.9%); and commerce 
(6.5% of the total).  
Table 1.6 FDI flows  by economic sector, 2015 -21 
(USD million)  
 2015  2016  2017  2018  2019  2020  2021  
Outward FDI         
Agriculture, livestock and fishing  -9 20 -8 24 41 73 -273 
Mining  -1,968  62 102 128 878 876 2,094  
Manufacturing  1,622  703 505 270 817 436 646 
Electricity, gas and water  684 -1,236  2,032  1,224  4,426  584 4,650  
Construction  -3 2 2 6 54 21 37 WT/TPR/S/451/Rev.1  
- 30 - 
   2015  2016  2017  2018  2019  2020  2021  
Commerce  883 1,485  221 851 392 -236 501 
Hotels and restaurants  33 1 199 3 -37 -79 -14 
Transport and storage  789 -157 640 994 1,588  -627 1,471  
Communications  354 561 207 189 -21 -412 -295 
Financial services  9,330  3,141  -1,184  -6,220  1,002  2,821  19 
Real estate activities and business 
services  310 183 -51 170 381 115 114 
Other services  62 133 102 116 93 -69 -24 
Unassigned  3,765  2,979  -232 4,091  731 3,203  5,529  
Total  15,851  7,876  2,535  1,847  10,345  6,705  14,454  
Inward FDI         
Agriculture, livestock and fishing  619 319 156 95 184 399 128 
Mining  8,347  698 837 -1,666  1,482  2,037  4,469  
Manufacturing  526 303 -276 -224 328 -298 197 
Electricity, gas and water  5,244  4,378  378 1,527  3,988  4,082  9,612  
Construction  365 132 565 105 153 1,199  730 
Commerce  1,705  705 565 159 1,449  810 314 
Hotels and restaurants  -39 10 -5 12 7 1 7 
Transport and storage  -1,155  225 -574 -309 -203 138 -1,578  
Communications  -212 -245 -1,034  422 1,236  -1,603  -687 
Financial services  1,770  1,980  717 6,736  2,108  1,084  1,102  
Real estate activities and business 
services  -1 -101 93 -46 16 10 -13 
Other services  80 91 -70 215 -316 171 150 
Unassigned  515 2,868  3,884  915 3,147  1,175  821 
Total  17,766  11,363  5,237  7,943  13,579  9,205  15,252  
Note:  The outward/inward criterion corresponds to the traditional method of reporting (IMF Balance of 
Payments and International Investment Position Manual, Sixth Edition (BPM6)). The estimation of 
outward FDI is based on direct information on flows, stocks and profits of resident companies that 
invest abroad.  
Source:  Central Bank of Chile.  
1.43.  Regarding FDI stock, inward investment into Chile amounted to USD 251,224 million at the 
end of 2021. This was concentrated mainly in the mining sector (26.8% of the total), f inancial 
services (16.2%), the electricity, water and gas sector (13.9%), manufacturing (3.8%) and 
communications (2.9%); 25.7% of investment went to sectors classified as "unassigned" 
(Table  1.7). Chilean FDI stock abroad totalled USD 146,695 million at t he close of 2021. Of that, 
39.8% went to "unassigned" sectors; 23.7% to financial services; 9.2% to the electricity, gas and 
water sector; 8.2% to manufacturing; 6.8% to commerce; 5.4% to transport and storage; and 2.9% 
to mining.  
Table 1.7 FDI stock by economic sector, 2015 -21 
(USD million)  
 2015  2016  2017  2018  2019  2020  2021  
Outward FDI         
Agriculture, livestock and fishing  139 110 107 113 150 247 154 
Mining  483 517 620 758 1,814  2,652  4,295  
Manufacturing  11,231  11,698  12,185  11,130  11,721  11,796  12,070  
Electricity, gas and water  7,392  7,323  8,428  9,367  12,743  10,945  13,452  
Construction  199 202 90 100 133 166 198 
Commerce  8,789  10,165  10,107  10,791  10,710  10,161  9,930  
Hotels and restaurants  174 145 344 348 346 278 255 
Transport and storage  5,356  5,637  6,302  6,221  7,365  6,860  7,942  
Communications  1,020  1,556  1,784  2,059  2,289  2,177  2,031  
Financial services  43,280  45,711  45,043  30,892  31,808  34,394  34,799  
Real estate activities and business 
services  1,819  2,005  2,181  2,638  2,405  2,465  2,490  
Other services  947 671 548 642 714 636 677 
Unassigned  24,751  30,282  32,093  45,209  48,063  50,099  58,400  
Total  105,577  116,022  119,834  120,268  130,261  132,877  146,695  
Inward FDI         
Agriculture, livestock and fishing  2,650  2,950  3,129  2,978  2,904  3,331  3,534  
Mining  70,817  68,772  66,863  62,528  62,220  62,201  67,415  
Manufacturing  14,766  13,580  13,353  10,787  10,473  10,590  9,631  
Electricity, gas and water  28,312  29,092  34,800  32,943  37,090  37,801  35,028  
Construction  3,222  3,358  3,590  4,219  4,280  5,044  5,242  
Commerce  9,180  9,406  11,297  11,427  12,064  12,735  12,620  
Hotels and restaurants  178 58 52 52 59 62 60 
Transport and storage  10,092  10,527  10,062  9,125  8,789  4,904  4,416  
Communications  8,237  8,277  6,847  6,873  7,554  8,133  7,166  
Financial services  33,330  38,480  43,370  44,523  43,746  43,132  40,716  WT/TPR/S/451/Rev.1  
- 31 - 
   2015  2016  2017  2018  2019  2020  2021  
Real estate activities and business 
services  230 178 190 142 149 151 121 
Other services  1,839  2,006  2,213  2,308  1,852  1,862  2,037  
Unassigned  40,131  50,068  61,981  66,255  66,529  69,670  63,237  
Total 222,984  236,752  257,748  254,160  257,709  259,614  251,224  
Note:  The outward/inward criterion corresponds to the traditional method of reporting (IMF Balance of 
Payments and International Investment Position Manual, Sixth Edition (BPM6)). The estimation of 
outward FDI is based on direct information on flows, stocks and profits of resident companies that 
invest abroad.  
Source:  Central Bank of Chile.  
1.44.  The main sources of capital investment flows into Chile between 2015 and 2021 were the 
United Kingdom, Italy, the Netherlands and Canada (Table  1.8). The main destinations for Chilean 
FDI outflows were the United States, Brazil, Panama and Peru.  
Table 1.8 FDI flows by country of origin, 2015 -21 
(USD million)  
  2015  2016  2017  2018  2019  2020  2021  2015 -21 
Outward FDI          
The America s  15,516  3,561  2,912  3,036  8,895  1,118  4,714  39,753   
Argentina  -1,490  27 869 533 918 -109 -1,224  -476  
Bahamas  18 38 -55 1 -74 -79 4 -148  
Bermuda  78 -1,140  -32 19 -30 62 96 -946  
Brazil  1,418  -607 1,826  2,106  3,939  222 4,217  13,121  
 British Virgin Islands  178 -210 245 -309 302 80 -525 -239  
Canada  681 111 19 -335 50 165 210 901 
 Cayman Islands  10 1,158  -574 286 199 18 37 1,134   
Colombia  674 -57 495 423 1,542  174 408 3,658   
Ecuador  39 27 10 65 59 80 -77 201  
Mexico  211 313 78 -66 75 36 77 724  
Panama  8,260  373 629 -745 80 149 739 9,486   
Paraguay  24 26 93 20 -161 64 11 76  
Peru -203 1,075  1,192  654 1,702  -156 924 5,190  
 United States a 6,870  2,271  -2,219  478 263 613 -405 7,872   
Uruguay  -120 114 17 66 57 -241 200 93  
Rest of the America s -1,130  43 320 -160 -25 39 21 -893 
Europe  -4,346  810 -230 -5,378  345 2,284  4,207  -2,307   
Belgium  48 24 21 -813 25 -14 3 -706  
France b 139 76 58 -406 19 73 37 -4 
 Germany  357 -21 -34 79 277 334 3,041  4,032   
Liechtenstein  -38 92 -1 -5 0 0 0 48  
Luxembourg  62 153 -291 -245 -152 776 767 1,070   
Netherlands  -132 -141 -10 18 177 91 119 122 
 Norway  -135 -65 -413 -77 -3 1 0 -692  
Spain  -1,426  106 10 38 42 98 -25 -1,159   
Switzerland  1,548  464 380 -4,238  16 -2 19 -1,814  
 United Kingdom  -4,775  118 22 288 -90 824 158 -3,455   
Rest of Europe  5 4 29 -16 35 104 89 251 
Africa  30 24 28 3 -9 12 21 109 
Asia 44 40 47 17 -15 60 -11 182 
Oceania  147 -25 205 -92 -2 280 477 991 
Unassigned  4,460  3,465  -427 4,261  1,131  2,951  5,046  20,886  
Total  15,851  7,876  2,535  1,847  10,345  6,705  14,454  59,613  
Inward FDI          
The America s  1,569  2,613  -4,020  2,057  3,459  2,361  2,012  10,051   
Argentina  -98 -63 -48 23 -454 2 2 -637  
Bahamas  -36 92 328 185 1 1 -2 568  
Bermuda  -310 99 -540 -240 -435 -16 -451 -1,893   
Brazil  71 -196 340 291 158 1 978 1,643  
 British Virgin Islands  -351 -47 271 -569 -264 156 159 -646  
Canada  -1,226  326 1,104  2,661  1,348  1,882  2,832  8,927   
Colombia  587 225 -217 433 805 92 -58 1,866   
Mexico  212 -143 191 -128 43 -1,185  -656 -1,666   
Panama  128 141 -167 -534 -164 -410 57 -948  
Peru -14 38 -15 74 20 42 46 191 
 United States a 1,471  1,660  -3,588  52 1,758  1,687  -1,356  1,684   
Uruguay  24 60 -54 28 40 30 37 165  
Rest of the America s 1,113  422 -1,626  -219 605 80 425 799 
Europe  6,766  5,601  3,522  7,426  6,237  5,436  11,880  46,868   
Austria  94 109 60 -21 131 79 27 479  
Belgium  0 182 -53 -166 160 181 2,798  3,101   
France b -25 -2 -61 121 157 384 217 790 
 Germany  202 66 178 119 104 122 -2 789  
Italy 69 2,495  17 1,043  2,094  258 7,409  13,385  WT/TPR/S/451/Rev.1  
- 32 - 
    2015  2016  2017  2018  2019  2020  2021  2015 -21  
Luxembourg  34 -287 -84 -111 73 285 -5 -95  
Netherlands  1,796  531 332 1,216  1,779  923 2,394  8,970   
Norway  56 -312 -20 282 86 -49 69 110 
 Spain  1,523  1,301  861 1,306  -66 997 -3,059  2,862   
Sweden  -41 64 220 41 -216 49 23 140  
Switzerland  -59 47 108 669 458 148 119 1,491  
 United Kingdom  2,915  926 2,332  3,179  1,333  1,950  1,476  14,112   
Rest of Europe  200 482 -368 -250 145 111 414 735 
Africa  -1 14 36 15 20 10 2 94 
Asia 9,002  484 1,494  -5,982  662 -273 796 6,184   
China  41 109 6 -142 141 241 -228 168  
Japan  -31 -156 681 -166 806 99 842 2,074   
Rest of Asia  8,993  531 806 -5,673  -285 -612 182 3,942  
Oceania  -34 19 95 3,385  211 468 -203 3,941   
Australia  -25 3 65 3,375  214 463 -205 3,890   
New Zealand  -9 16 30 10 -3 5 2 51  
Rest of Oceania  0 0 0 0 0 0 0 0 
Unassigned  465 2,631  4,110  1,041  2,990  1,204  764 13,206  
Total  17,766  11,363  5,237  7,943  13,579  9,205  15,252  80,345  
a Includes Puerto Rico.  
b Includes French Guiana.  
Note:  The outward/inward criterion corresponds to the traditional method of reporting (IMF Balance of 
Payments and International Investment Position Manual, Sixth Edition (BPM6)). The estimation of 
outward FDI is based on direct information on flows, stocks and profits of resident companies that 
invest abroad.  
Source:  Central Bank of Chile.  
1.45.  In terms of inward FDI stock at 31 December 2021, the main source countries were Canada 
(13.2% of the total), followed by the United States (10.9% of the total), the Netherlan ds (9.0%), 
the United Kingdom (7%), Spain (6.8%) and Italy  (5.6%). Other important investors were Belgium 
and Australia. With regard to Chilean FDI stock abroad, the main destinations were the United  States 
(10.3% of the total) and Brazil (9.5% of the tota l), followed by Peru (8.3%), Colombia (4.7%), 
Argentina (4.1%) and Germany (4.0%) (Table 1.9).  
Table 1.9 FDI stock by country of origin, 2015 -21 
(USD million)  
  2015  2016  2017  2018  2019  2020  2021  
Outward FDI         
America s 67,843  71,197  73,378  65,845  71,904  69,624  71,226   
Argentina  4,194  4,517  5,091  6,222  6,605  6,216  6,043   
Bahamas  788 879 802 803 705 919 743  
Bermuda  855 504 482 530 484 563 496  
Brazil  11,091  10,858  11,905  12,078  15,090  12,042  13,891  
 British Virgin Islands  5,980  4,788  4,435  4,611  4,681  4,781  4,005   
Canada  1,017  1,218  1,277  929 1,679  1,854  2,247  
 Cayman Islands  1,978  2,812  2,729  2,760  2,433  2,496  2,526   
Colombia  6,311  6,498  6,625  6,601  7,228  6,842  6,869   
Ecuador  459 329 357 391 438 512 343  
Mexico  1,065  1,202  1,302  1,246  1,248  1,249  1,341   
Panama  11,737  11,967  12,399  2,909  3,019  3,109  3,105   
Paraguay  393 403 424 397 411 458 464  
Peru 7,897  8,645  10,187  10,778  12,177  12,115  12,238  
 United States a 12,371  14,606  13,022  13,386  14,164  14,956  15,163   
Uruguay  1,392  1,623  1,702  1,733  1,310  1,280  1,517   
Rest of the America s 316 349 639 469 231 231 234 
Europe  11,560  13,889  13,726  8,460  9,229  11,733  15,615   
Belgium  1,002  941 971 268 293 303 307  
France b 556 663 650 268 377 374 402 
 Germany  1,957  1,849  2,001  2,073  2,235  2,811  5,798   
Liechtenstein  121 449 539 460 463 375 374  
Luxembourg  2,142  2,185  2,118  1,937  2,102  2,895  3,526   
Netherlands  971 994 1,085  1,141  1,347  1,433  1,597   
Norway  562 498 85 8 4 5 5 
 Spain  231 386 415 464 505 645 692  
Switzerland  3,436  5,324  4,813  490 522 525 556 
 United Kingdom  339 449 804 1,087  1,080  2,039  2,137   
Rest of Europe  243 152 245 264 302 327 221 
Africa  201 229 217 47 29 182 106 
Asia 268 191 179 196 187 206 259 
Oceania  671 657 877 788 720 989 1,382  
Unassigned  25,034  29,858  31,457  44,932  48,191  50,143  58,107  
Total  105,577  116,022  119,834  120,268  130,261  132,877  146,695  WT/TPR/S/451/Rev.1  
- 33 - 
    2015  2016  2017  2018  2019  2020  2021  
Inward FDI         
America s 86,736  90,071  90,735  83,634  82,039  82,504  80,520   
Argentina  756 751 692 643 142 143 65  
Bahamas  2,218  2,147  1,818  119 125 34 32  
Bermuda  6,774  7,157  6,608  4,557  3,572  3,509  3,091   
Brazil  4,193  4,376  5,211  4,760  3,955  3,353  3,344  
 British Virgin Islands  3,037  3,282  4,933  4,139  3,657  1,095  1,206   
Canada  24,523  26,665  28,413  29,454  29,819  31,936  33,210   
Colombia  2,429  2,389  2,459  2,698  3,316  3,774  3,318   
Mexico  2,196  2,145  2,277  2,032  2,186  1,857  1,680   
Panama  2,796  2,808  1,769  1,077  908 659 791  
Peru 716 680 669 626 563 570 587 
 United States a 28,143  29,481  29,612  26,635  27,835  29,839  27,416   
Uruguay  740 816 756 813 850 847 869  
Rest of the America s 8,214  7,374  5,519  6,080  5,110  4,886  4,911  
Europe  78,878  79,646  86,983  88,891  93,484  91,698  91,277   
Austria  1,167  1,229  1,396  1,086  1,146  1,014  891  
Belgium  2,611  2,620  2,685  2,452  2,425  2,493  5,471   
France b 1,612  1,527  1,383  1,516  1,642  1,572  1,616  
 Germany  1,286  1,209  1,360  1,325  1,313  1,066  1,019   
Italy 1,280  8,949  12,487  12,538  16,761  15,091  14,005   
Luxembourg  1,755  1,433  1,404  875 944 1,198  1,181   
Netherlands  21,884  21,576  18,196  19,553  19,815  20,993  22,688   
Norway  1,958  1,571  1,250  1,434  1,230  1,194  1,255  
 Spain  24,995  18,037  21,014  21,887  21,866  21,514  16,986   
Sweden  1,006  1,041  1,089  1,087  884 941 897  
Switzerland  1,067  1,104  1,154  1,771  2,156  1,960  1,876  
 United Kingdom  11,292  11,711  14,745  16,207  17,364  16,754  17,591   
Rest of Europe  6,965  7,638  8,820  7,160  5,939  5,908  5,802  
Africa  540 424 460 475 496 506 507 
Asia 12,912  12,881  13,453  7,408  7,704  6,995  8,126   
China  246 348 379 404 517 772 496  
Japan  3,026  2,389  2,062  1,671  2,288  2,005  3,282   
Rest of Asia  9,640  10,144  11,012  5,333  4,899  4,218  4,348  
Oceania  1,004  1,025  1,132  4,742  4,822  5,043  3,905   
Australia  881 885 949 4,579  4,661  4,910  3,769   
New Zealand  123 140 183 164 161 134 136  
Rest of Oceania  0 0 0 0 0 0 0 
Unassigned  42,914  52,705  64,984  69,009  69,164  72,869  66,889  
Total  222,984  236,752  257,748  254,160  257,709  259,614  251,224  
a Includes Puerto Rico.  
b Includes French Guiana.  
Note:  The outward/inward criterion corresponds to the traditional method of reporting (IMF Balance of 
Payments and International Investment Position Manual, Sixth Edition (BPM6)). The estimation of 
outward FD I is based on direct information on flows, stocks and profits of resident companies that 
invest abroad.  
Source:  Central Bank of Chile.  WT/TPR/S/451/Rev.1  
- 34 - 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  The Political Constitution of the Republic of Chile defines Chile as a unitary state and democratic 
republic, organized according to the principle of the separation of powers. The administration of the 
State is geographically decentralized into 16 regions, 56 provinces and 346 communes1 and has as 
its obje ctive the pursuit of harmonious and equitable territorial development, based on solidarity 
between the different regions.2 
2.2.  Executive power rests with the President of the Republic, who is the head of state. The President 
is elected by direct universal suf frage for a four -year term and may not be re -elected for the ensuing 
period. According to the Constitution, the President is responsible, inter alia , for appointing Ministers 
and Under -Secretaries, proposing, passing and enacting laws, and negotiating, con cluding and 
signing treaties on matters of interest to the country, which must be approved by the National 
Congress prior to ratification. The President also has exclusive authority to denounce or withdraw 
from a treaty.3 The most recent presidential elec tions took place in November and December  2021.  
2.3.  Legislative power rests with the National Congress, comprising the Chamber of Deputies and 
the Senate. The Chamber of Deputies has 155 members, who are directly elected to represent the 
country's 28 electoral  districts, and is renewed every four years. The Senate has 50 members directly 
elected by senatorial constituency for an eight -year term, who are renewed alternately every four 
years. The National Congress has the authority to approve or reject internatio nal treaties relating to 
points of law prior to ratification and may lodge reservations or interpretative statements during the 
ratification process.4 
2.4.  The judiciary is primarily governed by the Constitution and the Courts Statute Code.5 Its 
ordinary cour ts of justice consist of the Supreme Court, the 17 regional appeal courts distributed 
throughout national territory, court presidents and judges, criminal oral trial courts, magistrates' 
courts (civil cases) and guarantee courts (rights and constitutional guarantees of defendants in 
criminal proceedings). Special courts include family courts, labour -dispute courts, labour and 
pension rights enforcement courts, and courts martial in peace time.6 In addition, there are tax and 
customs courts that rule on cla ims by taxpayers against decisions by the Internal Revenue Service 
and the National Customs Service.  
2.5.  Legislation in Chile distinguishes between laws that interpret the Constitution, organic 
constitutional laws (LOCs), qualified quorum laws, ordinary laws a nd decrees with force of law 
(DFLs). Laws interpreting the Constitution clarify the meaning or scope of a concept or an expression 
contained in the Constitution and require a four -sevenths majority of currently serving deputies and 
senators if they are to be passed, amended, or repealed. LOCs address certain issues that are 
expressly stipulated in the Constitution and require an absolute majority of currently serving 
deputies and senators to be passed, amended or repealed.7 Laws interpreting the Constituti on and 
LOCs must be submitted for constitutional review by the Constitutional Court before they are 
enacted. Qualified quorum laws relate to certain matters specified in the Constitution and are passed, 
amended and repealed by an absolute majority of curre ntly serving deputies and senators. Ordinary 
or common laws require a majority of the votes cast by the members of each chamber present at 
the time of voting. DFLs concerning constitutional matters are issued by the President by delegation 
of congressional  authority. The Constitution takes precedence over all other laws. Box 2.1  sets out 
the legislative procedure for draft laws in Chile.  
 
1 Library of the National Congress o f Chile, online information. Viewed at: 
https://www.bcn.cl/siit/nuestropais/nuestropais/div_pol -adm.htm . 
2 Article 115 of the Political Constitution of the Republic of Chile of 1980 (most recent amendment of 
May 2023).  
3 Article 54 of the Political Constitution.  
4 According to Article 54 of the Political Constitution, congressional approval is not required for treaties 
signed by the President of the Republic in the exercise of their regulatory power.  
5 Courts Statute Code of 27 July 1943, last amended on 10 February 2023.  
6 Article 5 of the Courts Statute Code.  
7 Article 66 of the Political Constitution.  WT/TPR/S/451/Rev.1  
- 35 - 
  Box 2.1 Legislative process in Chile, 2023  
Passage of a draft law  
Initial phase: Draft laws can be introduced by the President of the Republic (in the form of "messages") or 
at the initiative of a member of Congress ("motions").  
The Constitution gives the President of the Republic the exclusive right to propose draft law s on issues 
concerning changes to the political or administrative division of the country, or the State's financial or 
budgetary management. Draft laws on all other issues may be introduced by both the President and members 
of Congress, although in certain  cases, the legislative process must begin in one of the two chambers. For 
example, laws on taxation of any kind, as well as on budgets for the Public Administration, can only be 
introduced in the Chamber of Deputies, while laws on amnesties and pardons ma y only come from the Senate.  
The first chamber to study the draft law is referred to as the "originating chamber" and the other chamber as 
the "revising chamber".  
First constitutional procedure: This legislative process takes place in the originating cham ber. During this 
phase, the draft is sent to a committee of experts in the subject matter at hand. The originating chamber 
holds a general discussion on the basis of the report of the committee and decides whether or not to pursue 
the legislative process. The following scenarios may arise:  
 (a) The committee does not make any comments and the draft law is deemed approved by the 
originating chamber.  
 (b) The committee makes comments on certain aspects of the draft law. The originating chamber holds 
a specifi c discussion focused on these comments.  
 (c) The draft law is rejected in full during general discussion in the chamber and thus does not prosper. 
The draft law may not be introduced again until one year has elapsed.  
If the rejected draft law was introduce d by the President, they may introduce it in the other chamber, where 
it may be approved by a two -thirds majority of the members present. If this occurs, the draft law is returned 
to the originating chamber, which may reject it but only by a two -thirds maj ority of the members present.  
Second constitutional procedure:  
When the draft law has been approved by the originating chamber, it moves to the revising chamber, which 
initiates an identical procedure to that described for the originating chamber. The rev ising chamber may 
approve, amend or reject the draft law from the originating chamber.  
 (a) If the draft is approved in full, it is submitted to the President of the Republic to be signed and 
enacted into law.  
 (b) If the revising chamber amends the draft law, it is returned to the originating chamber so that the 
amendments can be examined and either approved or rejected. If they are approved, the draft is sent 
to the President of the Republic for enactment. If they are rejected, a joint committee comprisin g 
representatives from both chambers must be established.  
 (c) If the revising chamber rejects the draft in full, the draft must be put to a joint committee for 
consideration, with a view to finding a means to resolve the disagreement.  
Vetoes and observat ions by the President of the Republic: If the President does not comment on a draft 
law within 30 days, it is deemed to have been approved and can consequently be enacted into law.  
If the President does make comments, the draft is returned to the National Congress. If both chambers adopt 
the observations, the draft can be enacted into law.  
If both chambers reject the President's observations and insist on the full or partial draft that they themselves 
have approved, a two -thirds quorum returns the draft to the President for enactment into law.  
If both chambers reject some or all of the President's observations and a two -thirds quorum cannot be 
reached, the points on which discrepancies exist cannot enter into law.  
Enactment: When the President of the Republic approves the draft law, an enacting decree must be issued 
within 10 days, making the draft into a law.  
Publication: Within five working days of the publication of the enacting decree, the text of the law is published 
in the Official Journal, wher eupon it becomes mandatory and is presumed to be common knowledge.  
Source:  Library of the National Congress of Chile, online information.  
2.6.  During the period under review, three constitution -building processes were initiated with a view 
to drafting a new constitution. The first of these processes began in 2015 and ended in 2018, a few 
days before the end of the President's term in office, with the presentation of a reform proposal that 
was not approved. The second such process began in 2019, and ended in 2 022 with a referendum 
in which 62 % of the electorate rejected the proposed text of the new constitution. In January  2023, 
the Constitution was amended in order to establish a new procedure for the drafting and approval 
of a new constitution, a process that  was under way at the time of writing.8 
 
8 Law No. 21.533 of 17 January 2023.  WT/TPR/S/451/Rev.1  
- 36 - 
  2.2  Trade policy formulation and objectives  
2.7.  Trade policy is formulated by the executive branch. During the period under review, Law 
No. 21.080 was enacted, modifying various statutory bodies for the purpose of modernizi ng the 
Ministry of Foreign Affairs (MINREL).9 One such modification was the creation of the 
Under -Secretariat for International Economic Relations (SUBREI), replacing the Directorate -General 
of International Economic Relations (DIRECON), which had been re sponsible for implementing and 
coordinating policy in the sphere of international economic relations since 1979. The new 
Under -Secretariat, set up in July  2019, works in close cooperation with the Minister of Foreign Affairs 
in the area of international ec onomic relations, and is in charge of coordinating with state 
administrative bodies whose remit covers foreign trade.10 In particular, it is responsible for 
promoting and negotiating international economic treaties, coordinating Chile's participation in th e 
various international organizations and forums that address economic issues, and formulating 
policies to promote Chile's exports and image abroad. In addition, SUBREI holds regular 
consultations with representatives of the National Congress on trade poli cy issues.  
2.8.  Law No.  21.080 also stipulated that the Minister of Foreign Affairs should establish an 
Interministerial Committee on International Economic Negotiations. Its task is to provide support to 
the Minister in their joint work with the President of t he Republic to plan and implement foreign 
policy in relation to international economic negotiations and fulfilment of the obligations deriving 
therefrom.11 Established in 2019, the Committee comprises the Minister of Foreign Affairs (as chair), 
the Ministe r of Finance, the Minister General Secretary of the Office of the President, and the Minister 
of Economic Affairs, Development and Tourism.12 A Subcommittee of Negotiators was also set up, 
its main purpose being to monitor the various economic negotiations  taking place internationally, 
while reporting to the Committee and making proposals for its consideration.13 
2.9.  The General Directorate for Export Promotion (ProChile) was established pursuant to 
Law No. 21.080 as a centralized public service attached to SUB REI. It replaces the Export Promotion 
Directorate under the former DIRECON. ProChile implements the President of the Republic's foreign 
trade policy, with particular emphasis on the promotion, diversification and stimulation of exports of 
goods and service s (Section  3.2.4.2).  
2.10.  Chilean foreign trade policy is based on four cross -cutting themes: (i) promoting 
multilateralism; (ii) human rights; (iii) feminist foreign policy; and (iv) trade for development. The 
policy also sets out seven priority action areas c losely related to trade, including the following: 
Latin American integration; the adoption of a cross -cutting gender dimension in decisions and 
initiatives at the multilateral, regional and bilateral level; the strengthening and diversification of 
global r elations, particularly with the Asia -Pacific region; environmental protection; and the adoption 
of a participatory, inclusive and fair foreign trade strategy that promotes sustainable economic 
development and is mindful of its own environmental impact.14 
2.11.  Both SUBREI and ProChile have mechanisms in place with the specific aim of promoting civil 
society participation in trade policy formulation processes. Examples of such mechanisms are the 
National Trade Facilitation Committee, the Civil Society Council, Cit izen Consultations, "Side Room" 
meetings, thematic working sessions with the private sector, the Advisory Council for Sectoral 
Branding, the Public -Private Technical Committee on Services Exports, and the Regional Export 
Councils.15 A multitude of initiatives are also in place aimed at fostering participation by trade unions 
and other interested parties in foreign trade matters, many of them within the framework of regional 
and multilateral agreements.16 In addition, the Ministerial General Secretariat of the Government is 
 
9 Law No. 21.080 of 20 March 2018 and amendments thereto.  
10 Article 27 of Law No. 21.080.  
11 Article 9 of Law No. 21.080.  
12 Decree No. 135 of 16 September 2020, Ministry of Foreign Affairs.  
13 Article 8 of Decree No. 135.  
14 Ministry of Foreign Affairs, Cuenta Pública Participativa 2022 . Viewed at: 
https://www.minrel.gob.cl/minrel/site/docs/20220517/20220517160125/cuenta_public a_participativa_2022_1
.pdf. 
15 Information provided by the authorities and SUBREI, Participación Ciudadana . Viewed at: 
https://www.subrei.gob.cl/participacion -ciudadana . 
16 Examples of this are the Joint Consultative Committee (JCC) (pursuant to the EU -Chile Association 
Agreement), the Business Council (pursuant to the Pacific Alliance Agreement), the APEC Business Advisory WT/TPR/S/451/Rev.1  
- 37 - 
  tasked with facilitating communication between the Government and citizens, disseminating the 
results of government work and ensuring that ministries and other services heed the opinions and 
concerns of citizens whe n designing policy.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.12.  Chile is a staunch advocate of the rules -based multilateral trading system and is of the view 
that international trade, when complemented by appropriate industrial, social and labour policies, 
can d rive growth, job creation, innovation and food security in countries.17 
2.13.  Chile joined the GATT on 16  March  1949 and is a founding Member of the WTO, having joined 
on 1 January  1995.18 Chile grants at least most -favoured nation (MFN) treatment to all its tra ding 
partners. Chile's trade policy has been reviewed five times within the GATT/WTO framework, most 
recently in 2015.  
2.14.  Chile ratified the WTO Trade Facilitation Agreement (TFA) on 21  November  201619 and 
notified the designation of all provisions under Cate gory A and applicable as of the entry into force 
of the Agreement.20 Chile accepted the Protocol amending the WTO Agreement on Trade -Related 
Aspects of Intellectual Property Rights (TRIPS Agreement) on 26  July 2013.21 Chile is not a party to 
the Agreement on Trade in Civil Aircraft or the Agreement on Government Procurement, although it 
has the status of observer in the Committee on Government Procurement. It is also not a party to 
the Information Technology Agreement (ITA) of 1996. On 8  October  2015, Chile  notified the 
WTO Council for Trade in Services of its preferential treatment of services and service suppliers from 
least developed countries (LDCs).22 With regard to the Agreement on Fisheries Subsidies, the 
authorities have indicated that the domestic r atification process is underway.  
2.15.  During the period under review, Chile made an active contribution to WTO discussions and 
initiatives. It took part in the Joint Initiative on E -Commerce23 and was one of the co -sponsors of a 
communication aimed at offering ideas to revitalize the Work Programme on E -Commerce.24 It also 
participated in the negotiations leading to the adoption of disciplines on services domestic 
regulation25 and presented its draft schedule of specific commitments as a contribution to finalizing 
the negotiations.26 Chile also participates in the Informal Working Group on Micro, Small and 
Medium -Sized Enterprises (MSMEs), which it coordinated up until January  2018. Together with the 
Republic of Korea, it currently co -coordinates the Joint Initiative on Investment Facilitation for 
Development.27 It also co -sponsored the Statement on Trade and Environmental Sustainability28 and 
took part in discussions on plastic  pollution and reforms to fossil fuel subsidies. On gender issues, 
Chile supported the Buenos Aires Declaration on Trade and Women's Economic Empowerment and 
is an active participant in the Informal Working Group on Trade and Gender. In addition, in the 
context of the WTO, Chile is a member of APEC, the Cairns Group, the G -20, the Friends of 
Anti-Dumping Negotiations and the Friends of Fish and is also one of the co -sponsors of the Joint 
Proposal on the Establishment of a Multilateral System of Notification  and Registration of 
Geographical Indications for Wines and Spirits.29 
 
Council (ABAC), SME Digital Dialogue (pursuant to the Digital Economy Partnership Agreement (DEPA)), and 
the Mirror Committee set up to support the Chilean National Contact Point for OECD Guidelines.  
17 WTO document WT/MIN(22)/ST/33 of 12 June 2022 . 
18 The Marrakesh Agreements were incorporated into Chilean legislation under Ministry of Foreign Affairs 
Decree No. 16 of 17 May 1995.  
19 WTO. Viewed at: https://tfadatabase.org/members/chile . 
20 WTO documents WT/PCTF/N/CHL/1 of 23 July 2014 and G/TFA/N/CHL/1 of 15 February 2018.  
21 WTO document WT/Let/888 of 6 August 2013.  
22 WTO document S/C/N/834 of 12 October 2015.  
23 WTO document WT/MIN(17)/60 of 13 December 2017.  
24 WTO document WT/GC/W/855/Rev.1 of 9 December 2022.  
25 WTO document INF/SDR/2 of 26 November 2021.  
26 WTO document INF/SDR/IDS/CHL/Rev.1 of 29 October 2021.  
27 WTO document WT/L/1130 of 10 December 2021.  
28 WTO document WT/MIN(21)/6/Rev.2 of 14 December 2021.  
29 WTO document TN/IP/W/10/Rev.4 of 31 March 2011 and information from the WTO. Viewed at: 
https://www.wto.org/english/tratop_e/dda_e/groups_by_country_e.htm . WT/TPR/S/451/Rev.1  
- 38 - 
  2.16.  At the Twelfth WTO Ministerial Conference held in Geneva in June  2022, Chile stated that the 
rules-based multilateral trading system faced a variety of complex challenges requiring the 
Organization to transform in order to ensure its relevance. With this in mind, Chile attaches priority 
to working towards a more inclusive and sustainable multilateral trade agenda that, on the one hand, 
can incorporate those actors that have not benefited  from international trade and, on the other hand, 
promotes international trade conducted in harmony with the environment, while serving as a tool 
for productive development. Consequently, Chile favours a formal process of substantive 
WTO reform in order to  strengthen and modernize the Organization. With respect to agriculture, 
Chile supports agricultural trade reform as a means of reducing trade -distorting support, promoting 
small -scale family farming and boosting production systems to yield more and better  food. Chile was 
also strongly opposed to applying export restrictions on food exports for the World Food 
Programme.30 
2.17.  During the period under review, Chile regularly submitted notifications under the various 
WTO Agreements (Table A2.1). As of July  2023, i t was almost entirely up to date, with a few 
exceptions (quantitative restrictions and RTAs).31 Since its last review in 2015, Chile has not taken 
part as a complainant or respondent in any case under the WTO dispute settlement mechanism, 
although it did p articipate as a third party in six cases.32 Chile is part of the group of WTO Members 
that, in March  2020, established the Multi -Party Interim Appeal Arbitration Arrangement as an 
alternative mechanism to the WTO Appellate Body.  
2.3.2   Regional and preferential agreements  
2.3.2.1   Regional agreements  
2.18.  Chile has historically maintained an open trade strategy based on both multilateralism and 
regionalism as a tool for diversifying its export base and reaching new markets. Chile's network of 
trade agreements comp rises 32 agreements covering more than 60 economies (Table A2.2). Chile 
has various types of agreement in place33, with recent moves towards more innovative initiatives 
focusing on up -to-the-minute issues such as digital markets, e -commerce, regional and g lobal value 
chains, the environment, gender, and micro, small and medium -sized enterprises (MSMEs). Chile 
has asserted on numerous occasions that the quest for open regionalism is complementary rather 
than detrimental to efforts at the multilateral level.  
2.19.  During the period under review, Chile undertook intensive work on regional integration. It 
concluded new agreements, initiated negotiations to extend and update  existing agreements and 
liaised with countries from strategic regions with a view to entering i nto new trade agreements.  
2.3.2.1.1   The Americas  
2.20.  Since its last review in 2015, Chile has undertaken a process to deepen its trade relations 
with the countries of MERCOSUR, of which it has been an associate member since 1996 pursuant to 
Economic Complementarity Agre ement (ECA) No.  35. The Free Trade Agreement (FTA) between 
Chile and Uruguay (ECA No.  73) entered into force in 2018. The Chile -Argentina FTA entered into 
force in 2019 and the Chile -Brazil FTA in 2022.34 These new FTAs complement ECA No.  35 since they 
include aspects not hitherto covered such as cross -border trade in services, e -commerce, 
competition policy, trade and gender, SMEs, and trade and the environment. The Agreement with 
Brazil was the first to include a chapter on regional and global value chain s, a topic to which Chile 
attaches particular importance in the current international trade context. This chapter includes 
 
 
30 WTO document WT/MIN(22)/ST/33 of 12 June 2022.  
31 WTO. Viewed at: https://graceful -plateau -qqqs3m1we1ny.vapor -farm-d1.com/en/status -by-
member/chile . 
32 WTO. Viewed at: https://www.wto.org/english/tratop_e/ dispu_e/dispu_by_country_e.htm . 
33 These are as follows: (i) partial -scope agreements, which eliminate tariffs on a restricted list of 
products; (ii) economic complementarity agreements, which are signed within the framewo rk of the 
Latin American Integration Association (LAIA) and which open goods markets on a reciprocal basis; 
(iii) free trade agreements, which create free -trade zones for the movement of goods, services and capital; 
(iv) economic association agreements, wh ich go beyond the opening of markets for goods and services to 
include provisions on other topics such as the environment, labour regulations or SMEs.  
34 The agreements with Argentina and Brazil were incorporated into ECA No. 35 as additional protocols, 
while the agreement with Uruguay incorporates provisions of ECA No. 35.  WT/TPR/S/451/Rev.1  
- 39 - 
  disciplines intended to facilitate the internationalization of businesses, particularly MSMEs, and their 
integration into regional an d global value chains. The importance of participation by the private 
sector, a key stakeholder in these value chains, is also recognized. Furthermore, and with a view to 
fostering the development of value chains, emphasis is placed on the importance of co nnectivity, 
e-commerce, digitalization and industry 4.0 in contributing to cross -border productive integration. 
In December  2021, Chile and Paraguay concluded a trade agreement following the same template 
as those mentioned above, thus concluding the cycle  of negotiations that Chile undertook with each 
of the founding members of MERCOSUR. This agreement has not yet been ratified.  
2.21.  May 2022 saw the entry into force of the Trade Integration Agreement between Chile and 
Ecuador (ECA No.  75), superseding ECA No.  65 and broadening the tariff concessions contained 
therein, as well as incorporating disciplines on, inter alia , services, e -commerce, 
telecommunications, labour matters, the environment, gender and SMEs . 
2.22.  During the review period, Chile undertook other ini tiatives in the area of trade integration. In 
2021, Chile and Bolivia agreed to promote their economic and trade agenda and consideration is 
being given to the possibility of deepening and modernizing ECA No.  22 between the two countries. 
Amendments were m ade to the Chile -Canada FTA in the areas of government procurement and 
investment, and new chapters were included on sanitary and phytosanitary measures, technical 
barriers to trade, and trade and gender.35 
2.23.  The year 2021 marked the tenth anniversary of the  Pacific Alliance, of which Chile is a 
founding member.36 To mark this anniversary, Chile promoted the Regional Digital Market Roadmap, 
which seeks to improve the competitiveness of the member countries of the Alliance through a policy 
of digital transform ation within the region, prioritizing digital and electronic commerce. The Roadmap 
comprises three pillars: (i) improving access to connectivity; (ii) fostering the exchange of digital 
goods and services; and (iii) developing the digital economy. During th e period under review, the 
Pacific Alliance intensified its trade relationship with MERCOSUR, the European Union, the 
Association of Southeast Asian Nations (ASEAN) and the Eurasian Economic Commission. In addition, 
in January  2022, Chile, together with th e other States party to the Pacific Alliance, signed the Pacific 
Alliance -Singapore Free Trade Agreement (PASFTA), which will allow Singapore to join the Alliance 
as an "Associate State".37 2020 saw the entry into force of the amending protocols to the Add itional 
Protocol to the Pacific Alliance Framework Agreement, introducing amendments to the provisions on 
e-commerce and telecommunications services, as well as an annex on cosmetic products in the 
chapter on technical barriers to trade and a new chapter o n regulatory improvement.38 
2.3.2.1.2   Asia and the Pacific  
2.24.  The Asia -Pacific region is of strategic importance to Chile in terms of diversifying its export 
markets. As such, Chile has made considerable efforts to broaden the agreements currently in force 
with various  countries in the region. The Free Trade Agreement with Thailand entered into force in 
2015. In 2019, the Comprehensive Economic Partnership Agreement with Indonesia entered into 
force, with subsequent negotiations to incorporate a chapter on cross -border trade in services. 2019 
also saw the entry into force of the Protocol Upgrading the China -Chile FTA39, which includes 
improvements in the areas of market access, rules of origin, customs procedures and trade in 
services, while also incorporating new chapte rs on trade facilitation, e -commerce and the 
environment. In 2021, Chile joined the Pacific Islands Forum as a "dialogue partner".  
2.25.  On 21  February  2023, after four years of legislative debate, the Comprehensive and 
Progressive Agreement for Trans -Pacific Pa rtnership (CPTPP)40 entered into force for Chile.41 Signed 
in Santiago de Chile in 2018 by its 11 members42, this agreement is largely based on the 
Trans -Pacific Partnership Agreement (TPP). The CPTPP, in addition to liberalizing trade in goods and 
 
35 WTO document WT/REG38/N/1/Add.3 -S/C/N/65/Add.1 of 12 June 2019.  
36 In addition to Chile, the Pacific Alliance comprises Colombia, Mexico and Peru.  
37 Pacific Alliance online information. Viewed at: https://alianzapacifico.net/ . 
38 Ministry of Foreign Affairs, Under -Secretariat for International Economic Relations, Balance de G estión 
Integral – Año 2020.  
39 WTO document WT/REG230/N/1/Add.1 -S/C/N/577/Add.1 of 30 September 2019.  
40 WTO document WT/REG395/N/1/4 -S-S/C/N/920/Add.3 of 15 February 2023.  
41 Supreme Decree No.318 of 21 February 2023.  
42 The Parties to the CPTPP are: Australi a, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, 
New Zealand, Peru, Singapore and Viet Nam.  WT/TPR/S/451/Rev.1  
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  service s, sets standards in areas such as customs, services, investment, competition, intellectual 
property, government procurement, e -commerce, state -owned enterprises, the environment and 
labour matters. Also in 2023, the specific commitments on trade in servic es contained in the 
Chile-Hong Kong, China agreement were updated in order to extend coverage to a number of 
additional sectors.  
2.3.2.1.3   Europe  
2.26.  In December  2022, the political -level negotiations to modernize the EU -Chile Association 
Agreement were concluded. The n ew agreement provides for a greater degree of liberalization of 
trade in goods, particularly agricultural and fisheries products, and contains updated government 
procurement provisions. Also in 2021, the Association Agreement with the United Kingdom43 entered 
into force, thereby preserving the level of access to the British market that had existed prior to the 
United Kingdom's withdrawal from the European Union. It includes a joint declaration whereby both 
counties commit to further modernization of th e Agreement in the future.  
2.3.2.2   Preferential arrangements  
2.27.  During the review period, Chile ceased progressively to make use of the Generalized System 
of Preferences (GSP). The last scheme of which it was a beneficiary was that of the Eurasian Union, 
up until 11  October  2021.  
2.28.  Chile maintains a unilateral regime of non -reciprocal tariff preferences for least developed 
countries (LDCs).44 Beneficiaries of this regime receive duty -free treatment for 7,709 tariff lines, in 
addition to the 35 tariff lines that are alre ady duty -free on an MFN basis. 41 tariff lines are excluded 
from this regime. They are to be found under HS headings 1001 ( "Wheat and meslin"), 1101 ("Wheat 
or meslin flour"), and 1701 ("Cane or beet sugar and chemically pure sucrose, in solid form") and 
remain subject to a price band system.45 During the review period, Chile imported products from 
LDCs with a total value of USD  740 million or the equivalent of 0.75 % of total imports. The vast 
majority of these imports were of crude oil (53 %), followed by clothing and accessories (38 %). 
2.3.3   Other agreements and arrangements  
2.29.  During the period under review, Chile continued its efforts to tackle current challenges and 
adapt to the demands of the 21st century economy. To this end, in 2020, Chile conclud ed a Digital 
Economy Partnership Agreement (DEPA) with New Zealand and Singapore, in recognition of the 
importance of the digital economy in promoting economic and social development. It sets out 
standards for data, promotes interoperability between differ ent regimes and seeks to address new 
issues relating to digitalization. In general terms, the Agreement goes further than the chapters on 
e-commerce found in other FTAs, since it addresses issues such as regulatory technology (RegTech), 
cooperation on arti ficial intelligence and digital inclusion. The Agreement also highlights the role of 
SMEs in trade in digital goods and services, while underscoring the importance of inclusive economic 
development as a means of achieving digital inclusion. The Agreement f urther calls for an open, 
global, non -discriminatory Internet able to spur creativity and innovation whilst also guaranteeing a 
safe and fully accessible online environment and at the same time allowing the Parties enough 
leeway to defend legitimate public  policy interests. The Agreement entered into force in late 2021 
and contains an acknowledgement of the fact that given the very nature of the digital economy, 
periodic updates will be required as and when the digital environment evolves.46 
2.30.  In August  2020,  Chile, Canada and New Zealand47 signed a non -binding Global Trade and 
Gender Arrangement for the purpose of devising cooperation activities to enable the sharing of 
 
43 WTO document WT/REG423/N/1 -S/C/N/1027 of 7 January 2021.  
44 WTO document G/C/W/695 -WT/COMTD/N/44 of 14 April 2014.  
45 WTO document WT/COMTD/PTA/2/1 of 11 March 2015.  
46 Under -Secretariat for International Economic Relations, Trade Agreements. Viewed at: 
https://www.subrei.gob.cl/acuerdos -comerciales/acuerdos -comerciales -vigentes/depa . 
47 Mexico, Colombia and Peru joined the Arrangement later.  WT/TPR/S/451/Rev.1  
- 41 - 
  knowledge and best practices with a view to increasing women's involvement in the economy and 
trade.48 A separate chapter on trade and gender was also included in the Chile -Canada FTA.  
2.4  Investment regime  
2.31.  Foreign direct investment (FDI) plays an extremely important role in the Chilean economy. 
Historically, the bulk of FDI has been in natural res ource extraction projects, mainly involving copper, 
meaning that trends in FDI over time have been closely linked to the price of the commodities in 
question. Chile's current policy on FDI has the following key objectives: (i) increase incoming 
FDI flows; (ii) compete with other emerging economies that have made a place for themselves as 
recipients of high value added FDI; (iii) continue to reduce the concentration of FDI in the primary 
sector; and (iv) link foreign investment more closely to the country's economic development.49 
2.32.  The legal framework for foreign investment underwent major modification during the period 
under review. The Tax Reform Law50 repealed Decree Law No.  600 of 197451 and in June  2015, 
Law No. 20.848 was enacted, establishing a new fore ign investment model by way of institutional 
and regulatory changes, as well as a new foreign investment promotional strategy.52 
2.33.  Under Law No.  20.848, the Foreign Investment Promotion Agency (InvestChile) was created 
as a decentralized public service with legal personality and its own assets. It replaced the Foreign 
Investment Committee, albeit with differing functions. InvestChile is responsible, inter alia , for 
promoting the national brand and working proactively to attract FDI, in addition to implementin g 
the Strategy for the Encouragement and Promotion of Foreign Investment established by the 
President of the Republic. InvestChile also examines and proposes measures to improve the 
investment climate and grants Foreign Investor Certificates.53 Under the n ew Law, the Committee 
of Ministers for the Encouragement and Promotion of Foreign Investment was also established to 
advise the President of the Republic on FDI promotion. This committee is chaired by the Minister of 
Economic Affairs, Development and Touri sm, and comprises the Ministers of Finance, Mining, Energy, 
Agriculture, Public Works and Foreign Affairs.54 
2.34.  Pursuant to the new law, the first Strategy for the Encouragement and Promotion of Foreign 
Investment was adopted in 201755 with the aim of activel y promoting investment. Special priority 
was given to mining, the food industry, tourism, energy and logistics, and technology. A new strategy 
was adopted in 202256 with a view to fostering economic recovery and sustainable development. 
This involves a mor e flexible approach whereby projects are actively sought out. The new strategy 
places emphasis on interinstitutional cooperation and sets out four key thematic areas (growth, 
transformation, sustainability and impact), which underpin the criteria for seeki ng out and attracting 
FDI projects.  
2.35.  Law No.  20.848 does not provide for a prior authorization mechanism for foreign investment. 
The law defines "foreign direct investment" as the transfer of foreign capital or assets with a 
minimum value of USD 5 million, as well as the acquisition of assets or equity ownership in a Chilean 
firm when the foreign investor obtains at least 10 % of voting rights or an equivalent percentage. 
Investment modalities are as follows: (i) freely convertible foreign exch ange; (ii)  physical assets; 
 
48 SUBREI, Acuerdo global sobre comercio y género – Preguntas frecuentes . Viewed at: 
https://www.subrei.gob.cl/docs/default -source/comercio -inclusivo/preguntas -y-respuestas -
gtaga.pdf?sfvrsn=12966243_2 . 
49 Decre e No. 56 of 30 September 2017, Ministry of Economic Affairs, Development and Tourism, and 
Decree No. 72 of 16 March 2022, Ministry of Economic Affairs, Development and Tourism.  
50 Law No. 20.780 of 29 September 2014.  
51 Decree Law No. 600 established a speci al voluntary regime for the entry of foreign capital into Chile, 
with foreign investors receiving an investment authorization involving the signature of a standard contract of 
indefinite duration with the State, which set out both parties' rights and oblig ations. For more information on 
the previous foreign investment regime, see WTO document WT/TPR/S/315/Rev.1 of 7 October 2015.  
52 Law No. 20.848 of 25 June 2015.  
53 Foreign Investor Certificates are voluntary and enable the holder to avail themselves of the rights 
enshrined in Law No. 20.848, including access to the formal foreign exchange market.  
54 Decree No. 51 of 25 May 2016, Ministry of Economic Affairs, Development and Tourism.  
55 Decree No. 56 of 30 September 2017, Ministry of Economic Affairs, Developme nt and Tourism.  
56 Decree No. 72 of 16 March 2022, Ministry of Economic Affairs, Development and Tourism.  WT/TPR/S/451/Rev.1  
- 42 - 
  (iii) reinvestment of profits; (iv) capitalization of credits; (v) technology capable of being capitalized; 
and (vi) credits associated with foreign investment from related companies.  
2.36.  The foreign investment regime guarantees for eign investors the option to remit  abroad  the 
capital transferred and net profits generated by their investments, provided that all tax obligations 
have been met. They are also guaranteed access to the formal foreign exchange market in order to 
generate li quidity in the currency their investment was made in and to repatriate capital and 
profits.57 In addition, an exemption on the payment of sales and services tax (VAT) is granted for 
the import of capital goods intended for investment projects exceeding USD  5 million in certain 
sectors. This exemption also applies to domestic investors.58 Section  3.3.1 covers other investment 
incentives.  
2.37.  Law No.  20.848 prohibits arbitrary discrimination against foreign investors, who are subject 
to the same legal regime as d omestic investors. Moreover, the new regime no longer allows for the 
tax invariability that was granted to foreign investors via contracts with the State under Decree Law 
No. 600, meaning that the same conditions now apply to foreign and domestic investors . However, 
any contracts that were valid at the time of entry into force of the new law were maintained, with 
the opportunity to apply for foreign investment authorizations under Decree Law No.  600 for a 
four-year period (from 2016 to 2020), during which i nvestors could benefit from a total fixed income 
tax rate of 44.45 %. 
2.38.  In general, Chile grants national treatment to foreign investors, who may own up to 100 % of 
a Chilean firm's equity in most economic sectors. However, Chilean legislation does impose 
restrictions on national treatment and market access in certain sectors such as coastal shipping, 
telecommunications and broadcasting, and aquaculture and fisheries, although in this last case, 
restrictions are subject to the principle of reciprocity. Table 2. 1 contains a summary of these 
restrictions. In addition, nationals of bordering countries may not acquire real estate in the border 
zone, which covers a strip stretching 10 kilometres from the land border and five kilometres from 
the coast. The same prohib ition applies to legal persons whose headquarters are in a country 
bordering Chile or where 40 % or more of their capital belongs to nationals of that country. 
"State  lands", i.e., land located within the border strip, may only be acquired or leased by Chilean 
natural or legal persons and by foreign nationals domiciled in Chile if so authorized by the 
Under -Secretariat for the Navy of the Ministry of National Defence.59 
Table 2.1 Sectors in which FDI is rest ricted, 2023  
Sector  Description  
Coastal shipping  Maritime, river and lake transport of passengers and cargo between points within 
national territory and between those points and floating structures installed within 
territorial waters or the exclusive econ omic zone (EEZ) (200 nautical miles from the 
coast) is limited to Chilean vessels. However, this prohibition does not apply to 
foreign vessels of a certain capacity engaged in passenger transport for tourism 
purposes or to foreign merchant vessels when the  cargo volume exceeds 
900 tonnes. Below this cargo volume, foreign vessels may only engage in coastal 
shipping if no Chilean vessels are available (Decree Law No.  3.059 on the 
Development of the Merchant Marine of 22  December  1979 and amendments 
thereto).  
Telecommunications 
and broadcasting.  Only legal persons established and domiciled in Chile may hold broadcasting 
concessions. The chairpersons, management, administrators and legal 
representatives of a free -to-air broadcasting concession -holder must hold Chilean 
nationality. Governing boards cannot be composed of a majority of foreign nationals. 
There are not, however, any caps on foreign investment, which may be up to 100% 
(Law No. 18.168, General Law on Telecommunications of 2  October  1982 and 
amendments  thereto).  
 
57 Articles 5 to 8 of Law No. 20.848 of 25 June 2015.  
58 Pursuant to Decree Law. No. 825 of 1974, last amended on 4 February 2022, imported capital goods 
must be intended for the development, exploration or exploitation in Chile of projects in the areas of mining, 
industry, forestry, energy, infrastructure, tele communications, and research/development in the technological, 
medical and scientific spheres, inter alia.  
59 Decree Law No. 1.939 of 10 November 1977 and amendments thereto, Ministry of Land and 
Colonization.  WT/TPR/S/451/Rev.1  
- 43 - 
  Sector  Description  
Fishing and aquaculture  Only Chilean nationals and legal persons established under Chilean law, as well as 
foreign nationals permanently resident in Chile, are authorized to harvest and 
capture hydrobiological species. Only Chilean vessels may fish in Chile's inland 
waters, territorial sea or EEZ. The vessel must have been previously registered in 
Chile and only Chilean nationals and legal persons established under Chilean law 
may register a vessel. The maritime authority may authorize certain f oreign fishing 
vessels on the basis of the principle of international reciprocity (Decree No.  430 
establishing the revised, coordinated and consolidated text of Law No.  18.892 of 
1989 and amendments thereto, the General Law on Fisheries and Aquaculture, of  
21 January  1992 and amendments thereto).  
Source:  Information provided by the authorities.  
2.39.  The State continues to play a limited role in the economy, although certain strategic activities 
are reserved for it, such as the exploration and exploitation of li thium, oil and gas deposits located 
in maritime zones under national jurisdiction or in areas legally classified as important for national 
security, and the production of nuclear power for peaceful purposes.60 
2.40.  Foreign investors are still able to bring capi tal into Chile within the framework of Chapter XIV 
of the Compendium of Foreign Exchange Regulations, an administrative record system that functions 
through the commercial banks and is managed by the Central Bank. The investment modalities 
covered by this system are loans, deposits, investments and capital contributions from abroad, for 
a minimum amount of USD  10,000. Foreign capital entering Chile pursuant to Chapter XIV is subject 
to the regime applicable to national investment. The only conditions for ad opting this mechanism 
are the obligation to report and to use the formal foreign exchange market.  
2.41.  Environmental protection legislation (Law No.  19.300 of 2010) requires an environmental 
impact assessment for certain investment projects, depending on their nature and possible effects. 
This requirement applies to both domestic and foreign investors. The Environmental Impact 
Assessment System exists for this purpose, with a statutory specialist institutional framework and 
procedures in place. The procedure giv es rise to an Environmental Qualification Resolution (RCA), 
which may classify a project as approved, conditionally approved or rejected. If rejected, the project 
cannot go ahead.  
2.42.  Since June  2022, the Ministries of Finance and Economic Affairs, Promotion a nd Tourism, and 
the National Evaluation and Productivity Commission (CNEP), together with other ministries and 
public agencies, have been engaged in consultations with a view to discussing possible ways of 
improving productivity in Chile. Against this back drop, in January  2023, the Government published 
the Productivity Agenda.61 One of its work strands (improved investment processes) has as its 
objective to undertake a structural reform of the system of sectoral investment permits, with a 
proposal for a dra ft law to be prepared by the second half of 2023. During the period under review, 
the CNEP carried out a regulatory review of strategic sectors in order to analyse the system for 
issuing permits in the mining, energy, real estate, industrial and infrastruc ture sectors and to 
recommend the steps needed for a wholesale simplification strategy. The CNEP's recommendations 
included: improved traceability in permit application processing through the digitalization of 
processes; the definition of a time frame for processing each type of permit; greater legal certainty 
through a general opposition mechanism; and unified criteria for the granting of permits at central 
and regional level.62 In early 2023, the CNEP was tasked with carrying out a new study to analyse 
priority sectoral permits for investment, pinpoint bottlenecks in the process and propose 
improvements to its efficiency, predictability and stability.63 
 
60 InvestChile (2021), Guía paso a paso para inv ersiones extranjeras , September. Viewed at: 
http://www.investchile.gob.cl . 
61 Government of Chile (2023), Agenda de Productividad . Viewed at: https://s3.amazonaws.com/gobcl -
prod/public_files/Agenda -de-productividad/2023.01.05_Agenda_de_Productividad -vF-2_1.pdf . 
62 CNEP (2019), Calidad Regulatoria en Chile: Una Revisión de Sectores Estratégicos. Resumen 
Ejecutivo . Viewed at: https://cnep.cl/wp -content/uploads/2019/09/Resumen -Ejecutivo.pdf . 
63 InvestChile, "Government aims to fast -track permits for investment in Chile". Viewed at: 
https://blog.investchi le.gob.cl/government -aims-to-fast-track-permits -for-investment -in-chile. WT/TPR/S/451/Rev.1  
- 44 - 
  2.43.  Most of Chile's free trade agreements feature a chapter on investment.64 Chile also has 
33 reciprocal Investment Promotion and Protection Agreements (IPPAs), although in recent years it 
has opted for other mechanisms such as trade agreements. During the period under review, a new 
IPPA with Hong Kong, China entered into force.65 
2.44.  Chile is a signatory to the Washington Convention (1965), which set up the International 
Centre for Settlement of Investment Disputes (ICSID). It is also a member of the Multilateral 
Investment Guarantee Agency and the Overseas Private Investment Corpora tion. It has also ratified 
the Inter -American Convention on International Commercial Arbitration and the Convention on the 
Recognition and Enforcement of Foreign Arbitral Awards.  
2.45.  Chile has signed numerous agreements to avoid double taxation. During the per iod under 
review, it concluded 10 new agreements with Argentina, Austria, China, the Czech Republic, India, 
Italy, Japan, the Netherlands, South Africa, the United Arab Emirates and Uruguay. At the time of 
writing, Chile had concluded a total of 36 agreeme nts.66 On 1  March  2021, the Multilateral 
Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting 
entered into force for Chile. This allows agreements currently in force to be amended in order to 
avoid double taxation  on the basis of the recommendations made as part of the Base Erosion and 
Profit Shifting Project spearheaded by the Organisation for Economic Co -operation and Development 
(OECD) and the G -20. 
2.46.  Any foreign investor may set up a company or subsidiary in Chil e. There are two ways of 
setting up a company: (i) electronically via https://www.registrodeempresasysociedades.cl/ ; and 
(ii) before a notary public. The main legal forms are: (i) empresa individual de responsabilidad 
limitada  (EIRL, individual limited liability company); (ii) sociedad de responsabilidad limitada  (limited 
liability company); (iii) sociedad anónima  (S.A., public limited company, either open or closed); and 
(iv) sociedad por acciones  (SpA, joint stock company) . Foreign investors may also set up a branch 
or subsidiary of a foreign company. This is a company comprising foreign natural persons who are 
not resident or domiciled in Chile, or legal persons that were established outside the country but 
which are governed by Chilean law and establish their domicile in the country. Regardless of the 
form of establishment, the company must have a fixed place of business within national territory 
(branch,  offices, agents or representatives). In order to set up an agency, a Chilean legal 
representative must be appointed and foreign documents of incorporation must be legalized.  
2.47.  In terms of the tax regime, foreign companies incorporated in Chile are accorded the same 
treatment as national companies.  
2.48.  Companies in Chile are liable for First Category Income Tax, which applies to income deriving 
from capital -intensive activities. Second Category Income Tax applies to income derived from 
dependent work (such as wag es and pensions). Two further taxes exist: the Complementary Global 
Tax, for which natural persons domiciled or resident in Chile are liable and which applies to the total 
First or Second Category taxable income (rates from 0 % to 40 %); and the Additional T ax (blanket 
rate of 35 %), which applies to income of Chilean origin received by natural or legal persons not 
 
64 Chile negotiated chapters on investment in its agreements with Argentina, Australia, Brazil, Canada, 
China, Colombia, Japan, the Republic of Korea, Mexico, the Pacific Alliance, Peru, and the United States.  
65 Chile currently has IPPAs in force with: Austria (2000), Belgium and Luxembourg (1999), 
Costa  Rica (2000), Croatia (1996), Cuba (2000), the Czech Republic (1996), Denmark (1995), 
El Salvador  (1999), Finland (1996), France (1994), Germany (1999), Greece (2002), Guatemala (2001), 
Honduras (2002), Hong Kong, China (2019), Iceland (2006), Italy (1995), Malaysia (1995), Nicaragua (2001), 
Norway (1994), Panama (1999), Paraguay (1997), Phili ppines (1997), Poland (2000), Portugal (1998), 
Romania (1997), Spain (1994), Sweden (1995), Switzerland (2002), Ukraine (1997), United  Kingdom  (1997), 
Uruguay (2012) and the Bolivarian Republic of Venezuela (1995).  
66 Argentina (2017), Australia (2014), Aus tria (2016), Belgium (2011), Brazil (2004), Canada (2000), 
China (2017), Colombia (2010), Croatia (2005), Czech Republic (2017), Denmark (2005), Ecuador (2004), 
France (2007), India (2023), Ireland (2009), Italy (2017), Japan (2017), Republic of Korea (200 4), 
Malaysia  (2009), Mexico (2000), Norway (2004), the Netherlands (2023), New Zealand (2007), 
Paraguay  (2009), Peru  (2004), Poland (2004), Portugal (2009), Russia n Federation  (2013), 
South  Africa  (2017), Spain  (2004), Sweden (2006), Switzerland (2011), Th ailand (2011), 
United  Arab Emirates  (2023), United  Kingdom (2005) and Uruguay (2019). Online information from the 
Internal Taxation Service. Viewed at: https://www.sii.cl /normativa_legislacion/convenios_internacionales.html . WT/TPR/S/451/Rev.1  
- 45 - 
  resident in Chile. Dividends, withdrawals and/or remittances of profits of partnerships or permanent 
establishments of foreign companies are subjec t to this tax.  
2.49.  The Income Tax Law67 provides for three alternative corporate taxation regimes:  
• Semi-integrated regime: final shareholders (foreign natural or legal persons) pay tax only 
when dividends are distributed, with the possibility of offsetting 65%  of the income tax 
paid by the company against their final tax as shareholders (the final tax burden cannot 
exceed 44.45%). A 100% tax credit applies when the shareholder is domiciled in a country 
with which Chile currently has a double taxation agreement in force.  
• Regime for small and medium -sized enterprises (SMEs) 68: final shareholders (foreign 
natural or legal persons) pay tax only when dividend distribution takes place, with a tax 
credit equal to 100% of the income tax paid by the company.  
• Transparency  regime: companies under the SME regime that also opt for the transparency 
regime are not liable for First Category Income Tax. Instead, their shareholders pay the 
Complementary Global Tax or the Additional Tax, as appropriate, on the profits of the 
transp arent company.  
2.50.  First Category Income Tax rates are 27 % under the semi -integrated regime and 25 % under 
the SME regime. For the 2020, 2021 and 2022 tax years, a reduced rate of 10 % was applied to 
SMEs.  
 
67 Decree Law No. 824 of 31 December 1974 and amendments thereto, Ministry of Finance.  
68 Companies with maximum taxable equity of CLP 2,795,000,000 (approximately USD  3,238,000) and 
average annual turnover of CLP 2,466,000,000 (USD 2,857,000).  WT/TPR/S/451/Rev.1  
- 46 - 
  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation and requirements  
3.1.1.1   Customs procedures and requirements  
3.1.  The National Customs Service is the institution responsible for customs administration and 
regulation in Chile. The main components of t he legal framework governing customs procedures are 
the Customs Ordinance1, the Organic Law on the National Customs Service2, the Compendium of 
Customs Regulations3 and various administrative resolutions.4 During the period under review, 
customs legislation underwent various amendments. Pursuant to Law No. 20.997, amending 
customs legislation, enacted on 1 March 2017, provisions of the Customs Ordinance and other legal 
texts were amended or provisions were incorporated to improve customs procedures, simplify 
foreign trade operations5 and bring the legislation into line with Chile's obligations under the 
Agreement on Trade Facilitation and other international agreements (Section 3.1.1.2). Amendments 
introduc ed by Law No. 21.336, enacted on 11 May 2021, included provisions setting and increasing 
penalties for smuggling and fraud6, and establishing a rule on repeat offending for crimes related to 
taxable goods. Furthermore, Law No. 21.039, enacted on 2 October  2017, amending Law No.  20.322 
on strengthening and improving the tax and customs justice system, improved tax and customs 
court procedures by, inter alia , allowing the parties to make their submissions to the Tax and 
Customs Courts digitally or electronic ally.7 
3.2.  Any registered taxpayer may become an importer (or exporter). In other words, no special 
registration or authorization is required to engage in importation/exportation. However, there are 
exceptions, as in the case of importers (and exporters) of controlled substances under the Montreal 
Protocol, who must be duly registered for that purpose.8 Importers, exporters, traders and 
consumers of controlled chemical products9, as well as importers, exporters and traders of 
explosives, must also be registered.10 
3.3.  Customs procedures for the entry of goods include definitive import, temporary admission, 
private warehousing, temporary admission for inward processing, re -entry, transit, transhipment 
and redirection.11 Law No. 20.997 of 2017 establ ished tax warehouses as a customs destination, 
which allows goods to be stored in a warehouse, for up to one year and without prior payment of 
duties and taxes, so they can undergo minor processes before they are imported.  
3.4.  The importer may carry out the de finitive import procedure directly if the commercial f.o.b. 
value of the goods does not exceed USD 1,000. In excess of this amount, the importer must hire a 
customs agent. By law, customs agents must, inter alia , be Chilean citizens, have passed a 
competit ive examination and be accredited by the National Director of Customs.12 Express delivery 
 
1 Decree with Force of Law No. 30 of 4 June 2005 and amendments thereto, Ministry of Finance.  
2 Decree with Force of Law No. 329 of 20 June 1979 and amendments thereto, Ministry of Finance.  
3 National Customs Service. Viewed at: https://www.aduana.cl/compendio -de-normas -
aduaneras/aduana/2007 -04-23/125943.html . 
4 National Customs Service. Viewed at: 
https://www.aduana.cl/aduana/site/edic/base/port/normativas.html?filtro=20181128185044_1 . 
5 Library of the National Congress of Chile (BCN). Viewed at: https://bcn.cl/2ncjw . 
6 BCN. Viewed at: https://bcn.cl/3bpht . 
7 BCN. Viewed at: https://bcn.cl/2lyfz . 
8 The Register of Importers and Exporters of Controlled Substances (which replaced the Register of 
Importers and Exporters of Ozone -Depleting Substances) is kept by the National Customs Service. 
Resolution  No. 822 of 28 February 2020, National Director of  Customs.  
9 This register is kept by the Directorate -General of Mobilization of the Armed Forces (DGMN) of the 
Ministry of National Defence. Viewed at: https://www.chileatiende.gob.cl/fichas/997 -inscripcion -en-el-registro -
nacional -como -importador -exportador -comerciante -y-consumidor -de-productos -quimicos . 
10 The DGMN is responsible for registering importers of explosives. Viewed at: 
https://www.chileatiende.gob.cl/ fichas/4512 -inscripcion -en-el-registro -nacional -como -importador -exportador -
y-comerciante -de-explosivos . 
11 For further details on customs destinations, see Table A3.1 in WTO document WT/TPR/S/315/Rev.1 of 
7 October 2015.  
12 Article  196, Book IV, of the Customs Ordinance.  WT/TPR/S/451/Rev.1  
- 47 - 
  companies can perform customs clearance for inbound and outbound goods worth up to USD  3,000. 
For shipments in excess of this amount, the services of a customs agent are required.  
3.5.  The customs agent completes the declaration of entry (DIN) and submits it to the National 
Customs Service electronically.13 The original transport document (bill of lading, waybill or airway 
bill), the commercial invoice14 and the mandate giv en to the customs agent, established by the 
endorsement of the original bill of lading, must be submitted with the DIN. Certain import processes 
may require additional documents, such as the certificate of origin (to benefit from a tariff 
preference), the packing list (in the case of containerized cargo), the insurance certificate (if the 
value of the premium is not shown on the commercial invoice), the note of expenses (if they are not 
shown on the invoice) and any appropriate authorizations, certificates,  endorsements or approvals, 
depending on the goods in question.15 
3.6.  Before submitting the DIN, importers may request an advance ruling from the National 
Customs Service on the criteria applicable to their foreign trade operations in terms of the tariff 
classification, valuation and origin of the goods. Advance rulings issued by Customs are binding. 
A new procedure for issuing advance rulings was approved by Exempt Resolution No.  1.629 of 
23 April 2020, annulling Exempt Resolution No.  4.378 of 31  July 2014.16 
3.7.  Imports of certain goods are subject to prior checks (authorization, certification, endorsement 
or approval) by the competent body, and the importer must obtain the relevant document before 
processing the DIN (Table 3.1). Prior checks are carried out prima rily to protect human, animal and 
plant health, for environmental or public safety reasons, and to comply with international 
agreements. According to the authorities, such authorizations are issued regardless of the origin of 
the product and are granted au tomatically. Since the previous review, radio communication 
equipment, which requires approval for the use of transmission bands, and concrete to be used in 
the production of reinforcement elements for public works or buildings, which requires a quality 
certificate, have been subject to prior checks.  
Table 3.1 Goods subject to prior checks before being cleared to enter Chile, 2023  
Goods  Body responsible and legal/regulatory basis  
Firearms, ammunition, explosives and inflammable 
or asphyxiating chemicals and equipment for their 
production, storage or deposit  Directorate -General of Mobilization of the Armed Forces  
(Law No. 17.798 of 21/10/1972, as revised by Decree 
No. 400 of 13 April 1978)  
Written or audiovisual material relating to martial 
arts for teaching purposes, irrespective of the 
person, institution or entity undertaking the 
transaction  Directorate -General of Mobilization of the Armed Forces  
(Art. 5 of Law No. 18.356 of 19/11/1984)  
Maps, geographical charts and other works showing 
international boundaries and Chile's borders  Directorate of Borders and Frontiers  
(Decree with the force of law (DFL) No. 5 of 
21/10/1968, Ministry of Foreign Affairs)  
Alcohol, alcoholic beverages and vinegar  Agriculture and Livestock Service  
(Art. 1 of Law No. 18.164 of 17/09/1982)  
Plant products and goods that may be dangerous to 
plants, including machinery for agricultural and 
forestry use, pursuant to SAG Resolution 
No. 2979/2001  Agriculture and Li vestock Service  
(Art. 1 of Law No. 18.164 of 17/09/1982)  
Animals and products, by -products and waste of 
animal or plant origin  Agriculture and Livestock Service  
(Art. 1 of Law No. 18.164 of 17/09/1982)  
Fertilizers and pesticides  Agriculture and Livestock  Service  
(Art. 1 of Law No. 18.164 of 17/09/1982)  
Food products or by -products of animal or plant 
origin  Agriculture and Livestock Service  
(Art. 1 of Law No. 18.164 of 17/09/1982)  
Food products of any kind  Health Service  
(Art. 2 of Law No. 18.164 of 17/0 9/1982)  
 
13 Electronic processing is optional; however, 99% of operations are processed electronically.  
14 If the issuer has omitted essential information from the commercial invoice, a sworn declaration by 
the importe r will also be required.  
15 National Customs Service. Viewed at: https://www.aduana.cl/que -debo-hacer -para-importar -una-
mercancia/aduana/2020 -11-16/105953.html . 
16 National Customs Service. Viewed at: https://www.aduana.cl/procedimiento -resoluciones -
anticipadas/aduana/2020 -07-23/140907.html . See also: https://www.chileatiende.gob.cl/fichas/151 -solicitar -
resoluciones -anticipadas -del-servicio -nacional -de-aduanas . WT/TPR/S/451/Rev.1  
- 48 - 
  Goods  Body responsible and legal/regulatory basis  
Pharmaceutical products, foods for medical use and 
cosmetics  Health Service  
(Art. 2 of Law No. 18.164 of 17/09/1982)  
Narcotics and psychotropic substances that cause 
addiction  Health Service  
(Art. 2 of Law No. 18.164 of 17/09/1982)  
Substances that are toxic or hazardous to health  Health Service  
(Art. 2 of Law No. 18.164 of 17/09/1982)  
Enriched, fissile or radioactive elements or 
materials, radioactive substances, devices or tools 
that emit ionizing radiation  Chilean Nuclear Energy C ommission  
(Decree No. 323 of 18/07/1974, Ministry of the 
Economy)  
Hydrobiological resources in any state of 
development, including ornamental species  Under -Secretariat of Fisheries (Decree No. 175 of 
20/05/1980, Ministry of the Economy, Development 
and Re construction)  
Fisheries products  Under -Secretariat of Fisheries (DFL No. 5 of 
15/11/1983, Ministry of the Economy, Development 
and Reconstruction)  
Species of wild fauna and flora protected by CITES  Management authority established pursuant to 
Article  IX of the Convention  
Human remains or ashes from their incineration  Ministry of Health (Sanitary Code, DFL No. 725 of 
31/01/1968, Ministry of Public Health; Decree No. 357 
of 18/06/1970, Ministry of Health)  
Waste and scrap of batteries and accumu lators; 
waste of zinc, lead, antimony, beryllium, cadmium, 
chromium, pharmaceutical products or organic 
solvents  Ministry of Health (Sanitary Code, DFL No. 725 of 
31/01/1968, Ministry of Public Health; Exempt 
Resolution No. 714 of 03/08/2002, Ministry of H ealth)  
Radio communication equipment. Authorization 
required before using a transmission band  Under -Secretariat of Telecommunications (Exempt 
Resolution No. 391 of 21/12/1985, Ministry of 
Transport and Telecommunications)  
Concrete to be used in the production of 
reinforcement elements for public works or buildings 
requires a certificate of construction quality  Laboratory listed in the Official Register of Laboratories 
for the Technical Control of Construction Quality of the 
Ministry of Housing and Ur ban Planning (Art. 2 of 
Decree No. 288 of 17/02/2006, Ministry of the 
Economy, Development and Reconstruction)  
Source:  National Customs Service. Viewed at: https://www.aduana.cl/que -productos -requieren -de-
autorizacion -para-ingresar -a-chile/aduana/2022 -06-29/123507.html  and 
https://www.aduana.cl/aduana/site/artic/20070220/pags/20070220163407.html#vtxt_cuerpo_T0 . 
3.8.  Once a DIN has been accepted for processing, the National Customs Service checks the 
documents an d, where appropriate, conducts a physical inspection (or appraisal) of the goods in 
order to verify the accuracy of the information declared. The authorities stated that, in 2022, 
2.5%  of DINs were subject to document checks and physical inspections (5% in  2014). Once the 
appropriate inspections have been completed and the DIN has been validated, the goods may be 
cleared by customs after the applicable import duties, taxes and other charges, as well as the goods 
storage and transport fees, have been paid. P ayment may be made electronically or through 
authorized financial institutions. Importers have a period of 15 days from the DIN issue date in which 
to pay customs duties and other charges. If payment is made after that period, the General Treasury 
of the R epublic calculates the amount to be paid, taking into account interest and fines.  
3.9.  All declarations of entry go through the National Customs Service's automated selectivity 
systems. Selectivity is based on risk profiling using mainly automated data systems,  although 
random checks are also carried out. The Inspection Subdirectorate of the National Customs Service 
is responsible for developing risk management plans, which may vary from one customs post to 
another. Their purpose is to reinforce the inspection o f shipments that pose the greatest risk, while 
facilitating legitimate foreign trade operations.  
3.10.  Pursuant to Article 117 of the Customs Ordinance, any importer may lodge an appeal for 
reconsideration against the decisions of the National Customs Service wi th the Customs 
administrator or regional director, within 15 days of notification of the contested act17, or appeal 
directly to the Tax and Customs Courts (TTAs), which are the independent judicial bodies of the 
customs authority .18 Appellants can submit v arious types of appeal to the TTAs, including appeals 
under the general appeals procedure, in the event of disagreement with a Customs decision; special 
appeals against violation penalties, which are lodged against fines imposed by Customs; special 
 
17 Article  121 of the Customs Ordinance.  
18 The TTAs were created pursuant to Law No.  20.322 of 27  January  2009.  WT/TPR/S/451/Rev.1  
- 49 - 
  appeals  against disciplinary penalties; and special appeals for a rights' violation as a result of an act 
or omission by Customs.19 The TTA competent to hear the appeal is the one in whose territorial 
jurisdiction the customs authority responsible for the contest ed act is located.20 TTA judgments can 
be appealed before the Appeals Court and reviewed by lodging a cassation appeal with the 
Supreme  Court.  
3.1.1.2   Trade facilitation  
3.11.   Chile ratified the WTO Trade Facilitation Agreement (TFA) on 21  November  2016 and notified 
all the Category A provisions of the Agreement, i.e. the provisions for implementation immediately 
upon entry into force of the TFA.21 At the end of 2018, Chile submitted a notification to comply with 
its transparency obligations.22 
3.12.  Law No. 20.997, published  on 13 March 2017, amended customs legislation to improve and 
simplify customs processes and bring the legislation into line with the TFA and other international 
agreements. Accordingly, a series of decrees and resolutions were passed to implement the 
amen dments. They included the possibility for goods to be released by Customs without paying 
duties or other taxes upon providing a payment guarantee23, the establishment of tax warehouses 
as a customs destination24, improvements to the temporary admission for inward processing regime, 
the regulation of expedited  shipments25 and the establishment of the Authorized Economic Operator 
(AEO) concept.26 Furthermore, the National Customs Service was given greater powers of inspection. 
For example, the time limit for Customs to levy charges, adopt measures or conduct procedures as 
part of ex post  company audits was increased from one to two years. In the c ase of trade 
agreements, the deadline for levying charges can be extended up to the document retention period 
established in the relevant agreement.  
3.13.  Chile began implementing the AEO programme in January 2018. It is open to customs agents, 
exporters, import ers and express delivery companies. Operators demonstrating compliance with 
customs and logistics chain security standards obtain benefits in terms of customs process controls 
and simplification, such as expedited clearance procedures, inspection of the go ods on the operator's 
own premises, priority use of non -intrusive technologies for the inspection of goods, release of 
imported goods with guaranteed payment, a 60 -day postponement on the payment of duties, and 
exemption from presenting the certificate of origin in order to benefit from tariff preferences under 
trade agreements. The authorities have indicated that, as of June  2023, 9  importers, 8 exporters 
and 30 customs agents had been certified under the AEO programme. Chile has signed agreements 
for the mutual recognition of AEO programmes with the Pacific Alliance countries (2018), China 
(2020) and the Customs authorities of various Latin America n and the Caribbean countries  (2022).  
3.14.  In addition to the aforementioned measures, the National Customs Service  implemented a 
series of trade facilitation measures  during the COVID -19 pandemic, such as simplified entry for 
critical medical supplies, and measures to make greater use of electronic processing and other 
technologies related to customs clearance procedu res. 
3.15.  Chile's National Committee on Trade Facilitation (CNFC) was set up in 2019.27 Its role is to 
support coordination and collaboration between the public and private sectors in the implementation 
of trade facilitation policies and projects, and to promot e the adoption of measures to simplify and 
harmonize trade and transport procedures. Since its inception, the CNFC has launched various 
initiatives to facilitate foreign trade logistics, including logistics master plans and measures to 
 
19 For more information about these appeals and proceedings, see: https://www .tta.cl/procedimientos -
plazos -reclamacion/ . 
20 In 2023, 18 TTAs were operating, four of which were in the Metropolitan Region.  
21 WTO document G/TFA/N/CHL/1 of 15 February 2015.  
22 WTO documents G/TFA/N/CHL/2 of 20 February 2018; G/TFA/N/CHL/2/Add.1 of 3  June 2019; 
G/TFA/N/CHL/2/Rev.1 of 20 January 2020; and G/TFA/N/CHL/2/Rev.2 of 24 August 2020.  
23 Exempt Decree No. 73 of 2 March 2018, Ministry of Finance.  
24 Decree No. 52 of 9 July 2018, Ministry of Finance, and Exempt Resolu tion No.  3.591 of 
14 August  2018, National Customs Service.  
25 Decree No. 9 of 12 March 2019, Ministry of Finance.  
26 Decree No. 1.140 (regulations on AEO certification) of 12 January 2018, Ministry of Finance, and 
Resolution No. 246 (establishing the AEO certification process) of 12 January 2018, National Customs Service.  
27 Decree No. 50 of 22 April 2019, Ministry of Fo reign Affairs.  WT/TPR/S/451/Rev.1  
- 50 - 
  promote the particip ation of micro -, small and medium -sized enterprises (MSMEs) in international 
trade.28 
3.16.  Chile has a single window, the Integrated Foreign Trade System (SICEX), run by the Ministry 
of Finance. The purpose of SICEX is to facilitate the processing of import and  export operations 
electronically, improve interconnection between various public agencies and private agents involved 
in foreign trade, and ensure interoperability with other windows in Chile and in other countries.29 
The export module became operational in 2016, and work on implementing the import module has 
been under way since 2018. It is expected to be completed in 2024 and enter into general use as of 
that year. During the period under review, new foreign trade operator profiles and procedures were 
incorporated into SICEX, and various control agencies were gradually integrated. The public agencies 
currently incorporated into SICEX include: the National Customs Service, the Agriculture and 
Livestock Service, the National Fisheries and Aquaculture Servic e, the Public Health Institute, the 
Chilean Copper Commission, the Ministry of Health, the Internal Revenue Service, the Civil Registry 
Service, the General Treasury of the Republic, the Secretariat General of the President's Office, the 
Directorate -Genera l of the Maritime Territory and Merchant Marine, and the Ministry of Transport 
and Telecommunications. Other agencies have yet to be integrated.30 Progress has also been made 
with the integration of SICEX into logistics gateways at the country's ports in o rder to make 
document checks and physical inspection processes for foreign trade freight more efficient. Use of 
SICEX is voluntary but could be made mandatory in the future. Use of the export module has 
gradually increased since it began operating; in 2022 , it was used in 70% of all export operations, 
equivalent to 88% in terms of USD f.o.b. value.  
3.17.  Trade facilitation is one of the central themes of the Productivity Agenda published by the 
Government in January 2023. The main objective is to facilitate trade  through the digitalization and 
simplification of processes, thus reducing costs and export and import times. It sets out 
seven  measures to this end: (i) supporting legislative amendments to promote competition in 
maritime cabotage; (ii) expanding the expo rt VAT refund system to more of the country's ports31 by 
pre-validating customs declarations through SICEX; (iii) digitalizing and incorporating all import 
operations into SICEX, including the customs flow and procedures handled by other public services; 
(iv) expanding the electronic exchange of documents (e.g. animal health certificates) between the 
foreign trade windows of the Pacific Alliance countries and working on integration with the windows 
of Asia-Pacific Economic Cooperation (APEC) economies for t he exchange of customs declaration 
data; (v) expanding SICEX integration with the single window of the Ministry of Transport and 
Telecommunications, by incorporating the National Customs Service; (vi) modernizing 
documentation and loading processes at Sant iago Airport through digitalization in SICEX; and 
(vii) automating changes to customs documents, especially those resulting in the refund of duties 
on imports processed by AEOs.32 
3.1.1.3   Customs valuation  
3.18.  Procedures for determining the customs value of goods are regulated by the WTO Customs 
Valuation Agreement, which has been incorporated into domestic law in Chile33, the Agreement's 
implementing regulations34, the Customs Ordinance, the Compendium of Customs Regulations 
(Chapter 2) and various resolutions. These regulations are implemented by the National Customs 
Service and have been notified by Chile to the WTO.35 They have not undergone any fundamental 
changes during the period under review.  
 
28 Customs Association. Viewed at: https://cadch.cl/segunda -sesion -2022-del-comite -nacional -de-
facilitacion -de-comercio -cnfc-subre i/. 
29 For example, SICEX is integrated into the single windows of the other Pacific Alliance countries 
(Colombia, Mexico and Peru) for phytosanitary certificates and certificates of origin.  
30 SICEX. Viewed at: https://pr o.sicexchile.cl/ . 
31 This option is already open to exporters at the ports of Antofagasta, Angamos, Lirquén, Coronel, 
San Vicente and Valparaíso.  
32 Ministry of Finance. Viewed at: https://www.hacienda.cl/noticias -y-eventos/comunicados/agenda -de-
productividad . 
33 Decree No. 16 of 17 May 1995, Ministry of Foreign Affairs.  
34 Decree No. 1.134 of 20 Jun e 2002, Ministry of Finance.  
35 WTO documents G/VAL/N/1/CHL/1 of 24 November 2003; G/VAL/N/1/CHL/2 of 25  February  2014; 
and G/VAL/N/2/CHL/1 of 25 February 2014.  WT/TPR/S/451/Rev.1  
- 51 - 
  3.19.  The transaction value is the primary method used to determine the valu e of the goods and is 
applied in the vast majority of cases. It is the importer's obligation to provide documentation 
demonstrating the accuracy of the value declared.36 If it is impossible to determine the customs 
value using the transaction value, the ot her valuation methods under the WTO Agreement are 
applied in sequential order to verify the value declared.  
3.20.  If there are grounds for doubting the truth or accuracy of the value declared or the supporting 
documents, Customs allows the goods to be released w hile the value is being determined, provided 
that the importer pays the applicable duties and taxes.37 In such cases, the importer has a 
reasonable period, which may not be less than 15 working days from notification of the finding and 
requirement, to prov ide the information requested, submit a defence and attach any other records 
to substantiate the amount declared.38 Once the value has been determined, Customs notifies the 
importer of the calculated value and the valuation method used, and the importer mu st pay any 
difference in duties and taxes. If the importer does not agree with the Customs decision, the importer 
may lodge an appeal with the National Customs Service or the Tax and Customs Courts.  
3.21.  The regulations provide for special valuation in the case  of products such as used goods in 
general, used and unused motor vehicles, carrier media bearing software, cinematic films and video 
tapes, and barter or compensation transactions. Nevertheless, the customs value of the goods must 
be determined based on t he criteria set out in the WTO Customs Valuation Agreement. Used goods 
are initially valued based on the commercial invoice. If there is no information or there are 
reasonable doubts about the price, the value can be determined by means of the "fall -back" method, 
using prices previously accepted by Customs contained  in official documents, such as import 
declarations, residual price certificates or other available means. For used motor vehicles, the 
current market prices, as shown in national or international specialist magazines, catalogues or 
similar databases, may be used. In the case of carrier media containing data or instructions, only 
the cost or value of the medium itself (not the cost or value of the software) is taken into 
consideration.39 
3.1.2   Rules of origin  
3.22.  Chile does not apply any non -preferential rules of origin. However, it does apply preferential 
rules of origin under the free trade agreements and other preferential arrangements to which it is 
party, and to grant unilateral preferences.  Since the previous review, Chile has notified the rules of 
origin stipulated in various trade agreements that it has signed in recent years to the 
WTO Committee on Rules of Origin.40 
3.23.  The preferential rules of origin can be general or specific, and vary fr om one agreement to 
another. Goods are generally considered to be originating if: (a) they have been wholly obtained in 
the territory of one of the parties; (b) they have been produced in the territory of one of the parties 
using originating materials; or (c) they have undergone a change in tariff classification in the territory 
of a party or if the value of the non -originating inputs does not exceed a certain ( de minimis ) 
percentage of the f.o.b. value of the goods.41 To determine the origin of goods produced using 
non-originating materials, various formulas (such as the regional or domestic content criterion or 
the value added criterion) are applied, depending on each agreement. The agreements signed by 
Chile also set  out the operations and procedures that are insufficient to confer origin, such as 
assembly of packages, washing, painting, polishing, packaging, affixing of marks and labels, and 
assembly.  
3.24.  Some agreements allow origin to be conferred based on the cumulati on criterion, whereby 
material originating from one party can be used by producers in another party without the final 
product losing its originating status. In fact, to facilitate integration into value chains, Chile promotes 
 
36 The sworn declaration of value and elements thereof is only required for ex post  inspection 
procedures and for commercial goods imports with a c.i.f. transaction value equal to or greater than 
USD 50,000 (Compendium of Customs Regulations, Chapter 2, para. 6.2).  
37 Article  69 of the Customs Ordinance.  
38 Article  69, third paragraph, of the Customs Or dinance.  
39 Compendium of Customs Regulations, Chapter 2 (Valuation of goods for customs purposes).  
40 WTO documents G/RO/N/154 of 21 July 2017; G/RO/N/167 of 25 May 2018; G/RO/N/183 of 
15 April 2019; G/RO/N/191 of 20 January 2020; and G/RO/N/199 of 21 July 2020.  
41 In general, the percentage of permitted non -originating inputs fluctuates between 7% and 10% of the 
f.o.b. value of the goods.  WT/TPR/S/451/Rev.1  
- 52 - 
  the use of third -party, extend ed or cross cumulation criteria in its trade agreement negotiation 
processes. For instance, under the Free Trade Agreement between Chile and Ecuador (Article 3.5.2), 
inputs from the Plurinational State of Bolivia, Colombia and Peru can be considered as ori ginating 
from the exporting party. Aside from the general rules, specific rules of origin apply to certain types 
of goods (such as motor vehicles and textiles). The complexity and restrictiveness of such rules vary 
from one agreement to another.  
3.25.  Proof of o rigin of the goods must be provided in order to benefit from preferences under the 
trade agreement invoked. Proof can take one of two forms: a certificate of origin issued by an 
authorized entity, or self -certification, which allows the producer, exporter or importer to certify the 
originating status of the goods by making a declaration to that effect in the invoice or other 
commercial document.42 In the case of the former, ProChile, the public institution in charge of 
promoting exports, is responsible for issuing certificates of origin for Chilean exports eligible for tariff 
preferences under the respective trade agreements with the European Union, the United  Kingdom, 
the EFTA countries and China.  
3.26.  If the goods comply with the applicable rules of origin but the importer does not present proof 
of origin at the time of importation, the goods can be imported and the tariff preference claimed 
afterwards. Once proof of origin has been provided and its validity has been verified, the importer 
will have between 6 an d 24 months, depending on the corresponding agreement, in which to claim 
a refund of any overpayments made.43 
3.1.3   Tariffs  
3.1.3.1   Structure  
3.27.  The Chilean Customs Tariff is based on the 2022 version of the Harmonized Commodity 
Description and Coding System (HS 2022). In January  2023, it comprised 8,738 eight -digit lines 
(compared to 7,785 in 2014) (Table 3.2).  All tariff lines, with the exception of certain agricultural 
products, are subject to ad valorem  duty. The agricultural products to which the price band system 
applies are wheat, wheat flour and sugar (41 tariff lines at the eight -digit level of HS 2022).44 Chile 
does not use any seasonal tariffs.  
Table 3.2 Structure of MFN tariffs, 2014 and 2023  
 
2014a 
(HS 2012)  2014b 
(HS 2012)  2023a 
(HS 2022)  2023c 
(HS 2022)  
Total number of lines  7,785  7,785  8,738  8,738  
Ad valorem  rates (> 0%)  7,709  7,709  8,659  8,659  
Duty-free 35 35 38 38 
Non-ad valorem  rates 41 41 41 41 
Non-ad valorem  tariffs (% of all tariff lines)  0.5 0.5 0.5 0.5 
Non-ad valorem  tariffs with no ad valorem  equivalents 
(% of all tariff lines)  0.5 0.0 0.5 0.0 
Tariff rate quotas (% of all tariff lines)  0.1 0.1 0.03 0.03 
Duty-free tariff lines (% of all tariff lines)  0.5 0.5 0.4 0.4 
Average of lines exceeding zero (%)  6.0 6.2 6.0 6.0 
Simple average (%)  6.0 6.2 6.0 5.9 
Agricultural products (WTO definition) (%)  6.0 7.1 6.0 5.8 
Non-agricultural products (including petroleum, 
WTO definition) (%)  6.0 6.0 6.0 6.0 
Domestic tariff peaks (% of all tariff lines)d 0.0 0.5 0.0 0.0 
International tariff peaks (% of all tariff lines)e 0.0 0.5 0.0 0.0 
 
42 The certificate of origin forms required under the various agreements signed by Chile can be found at: 
https://www.aduana.cl/certificados -de-origen/aduana/2013 -04-17/103419.html . 
43 Chilean Customs. Viewed at: https://www.aduana.cl/certificados -de-origen -acuerdos -y-tratados -
comerciales/aduana/2019 -01-04/160331.html . 
44 In HS  2022 the lines are: wheat 10019100, 10019911, 10019912, 10019913, 10019919, 10019921, 
10019922, 10019923, 10019929, 10019931, 10019932, 10019933, 10019939, 10019941, 10019942, 
10019943, 10019949, 10019951, 10019952, 10019953, 10019959, 10019961, 100 19962, 10019963, 
10019969, 10019971, 10019972, 10019973, 10019979, 10019991, 10019992, 10019993, 10019999; wheat 
flour: 11010000; sugar:  17011300, 17011400, 17011200, 17019100, 17019910, 17019920 and 17019990.  WT/TPR/S/451/Rev.1  
- 53 - 
   
2014a 
(HS 2012)  2014b 
(HS 2012)  2023a 
(HS 2022)  2023c 
(HS 2022)  
Overall standard deviation of applied rates  0.4 3.3 0.4 0.6 
Bound tariff lines (% of all tariff lines)  100.0  100.0  100.0  100.0  
a For products subject to price bands, 6% was used.  
b For products subject to price bands, the bound tariff rate was used.  
c For products subject to price bands, the 2022 reference prices were used to estimate the ad valorem  
equivalents.  
d Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
e International tariff peaks are de fined as those exceeding 15%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.28.  In January 2023 , Chile's customs tariff had two ad valorem  rates, 0% and 6%, if the tariff 
levels that would result from applying the price band system are disregarded. Chile's tariff structure 
is homogenous, since the 6% rate applies to almost 99,6% of the lines, while the 0% rate only 
applies to the remaining 0.43% of the tariff lines, i.e. 38 tariff lines at the eight -digit level of 
HS 2022, whi ch consist mostly of machinery and certain means of transport, such as aircraft and 
boats for leisure or fishing (Table A3.1).  
3.29.  In 2023, the average MFN tariff is 5.9%, if the price bands are taken into consideration 
(Table  3.3). If the price bands are disr egarded, a 6% simple average tariff rate is applied to 
agricultural products (WTO definition), while the average tariff for non -agricultural products is 5.97% 
The average tariff for agricultural products, taking into account the ad valorem  equivalents of d uties 
on products subject to price bands, fluctuates depending on international prices. Nevertheless, the 
tariff resulting from the application of price bands cannot be higher than the bound tariff. During 
most of the review period, the added component was  negative owing to the high prices of the 
products included in the price bands, meaning that the applied tariff was zero. Accordingly, if this 
level is used for products subject to price bands, the overall simple average tariff rate would be 
5.9% in 2023 a nd 5.8% for agricultural products.  
Table 3.3 Summary analysis of the MFN tariff, 2023a 
Product description  MFN 
No. of 
lines  Average  
(%) Range  
(%) Coefficient  
of variation  
(CV)  Bound  
tariff rangeb 
(%) 
Total  8,738  5.9 0 - 6 0.1 0 - 98 
HS 01 -24 2,092  5.9 0 - 6 0.1 25 - 98 
HS 25 -97 6,646  6.0 0 - 6 0.1 0 - 25 
By WTO category  
Agricultural products  1,455  5.8 0 - 6 0.2 25 - 98 
Animals and animal products  183 6.0 6 0.0 25 
Dairy products  37 6.0 6 0.0 25 - 31.5 
Fruit, vegetables and plants  535 6.0 6 0.0 25 
Coffee and tea  29 6.0 6 0.0 25 
Cereals and preparations  143 4.6 0 - 6 0.6 25 - 31.5 
Oilseeds, fats and oils and their 
products  129 6.0 6 0.0 25 - 31.5 
Sugars and confectionery  22 4.2 0 - 6 0.6 25 - 98 
Beverages, alcohol and tobacco  119 6.0 6 0.0 25 
Cotton  5 6.0 6 0.0 25 
Other agricultural products n.e.s.  253 6.0 6 0.0 25 
Non-agricultural products  
(including  petroleum)  7,283  6.0 0 - 6 0.1 0 - 25 
Non-agricultural products 
(excluding petroleum)  7,255  6.0 0 - 6 0.1 0 - 25 
Fish and fish products  707 6.0 6 0.0 25 
Mineral and metals  1,035  6.0 6 0.0 0 - 25 
Chemicals and photographic 
products  1,632  6.0 6 0.0 25 
Wood, pulp, paper and furniture  437 5.9 0 - 6 0.1 25 
Textiles  655 6.0 6 0.0 25 
Clothing  217 6.0 6 0.0 25 
Leather, rubber, footwear and 
travel articles  175 6.0 6 0.0 25 
Non-electrical machinery  941 6.0 0 - 6 0.0 23 - 25 WT/TPR/S/451/Rev.1  
- 54 - 
  Product description  MFN 
No. of 
lines  Average  
(%) Range  
(%) Coefficient  
of variation  
(CV)  Bound  
tariff rangeb 
(%) 
Electrical machinery  419 6.0 0 - 6 0.0 25 
Transport equipment  474 5.6 0 - 6 0.3 3 - 25 
Non-agricultural products n.e.s.  563 6.0 0 - 6 0.0 15 - 25 
Petroleum  28 6.0 6 0.0 25 
By ISIC sectorc 
Agriculture and fishing  887 5.8 0 - 6 0.2 0 - 31.5 
Mining  119 6.0 6 0.0 25 
Manufacturing  7,731  6.0 0 - 6 0.1 3 - 98 
By HS section  
01 Live animals; animal products  861 6.0 6 0.0 25 - 31.5 
02 Vegetable products  737 5.7 0 - 6 0.2 25 - 31.5 
03 Fats and oils  78 6.0 6 0.0 25 - 31.5 
04 Prepared foodstuffs, etc.  416 5.9 0 - 6 0.1 25 - 98 
05 Mineral products  197 6.0 6 0.0 0 - 25 
06 Products of the chemical or allied 
industries  1,508  6.0 6 0.0 25 
07 Plastics and rubber  293 6.0 6 0.0 25 
08 Raw hides and skins, and leather  79 6.0 6 0.0 25 
09 Wood and articles of wood  212 6.0 6 0.0 25 
10 Pulp of wood, paper, etc.  183 5.9 0 - 6 0.1 25 
11 Textiles and textile articles  855 6.0 6 0.0 25 
12 Footwear and headgear  51 6.0 6 0.0 25 
13 Articles of stone  177 6.0 6 0.0 25 
14 Precious stones, etc.  62 6.0 6 0.0 25 
15 Base metals and articles of base 
metal  629 6.0 6 0.0 25 
16 Machinery and mechanical 
appliances  1,352  6.0 0 - 6 0.0 23 - 25 
17 Vehicles, aircraft, vessels and 
associated transport equipment  493 5.6 0 - 6 0.3 3 - 25 
18 Precision instruments  307 6.0 6 0.0 25 
19 Arms and ammunition  24 6.0 6 0.0 25 
20 Miscellaneous manufactured 
articles  194 6.0 6 0.0 15 - 25 
21 Works of art, etc.  30 6.0 6 0.0 25 
By stage of processing  
First stage of processing  1,554  5.9 0 - 6 0.0 0 - 31.5 
Semi-processed products  2,453  6.0 0 - 6 0.0 25 - 98 
Fully processed products  4,731  6.0 0 - 6 0.0 3 - 31.5 
a For products subject to price bands, the 2022 reference prices were used to estimate the ad valorem  
equivalents.  
b Tariff bindings are given according to the HS 2017 classification and rates applied according to 
HS 2022; consequently, there may be differences in the number of lines included in the analysis.  
c ISIC (Rev.2), except for electricity (one line).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.2   Price band sys tem 
3.30.  Chile uses a price band system based on international reference prices for imports of wheat, 
wheat flour and sugar (Table 3.4). The price band system is an automatic mechanism for adjusting 
tariffs in line with international price variations. It was es tablished in 1986 to mitigate the impact of 
international price fluctuations for certain agricultural products on the domestic market. Price bands 
were initially applied to imports of wheat, wheat flour, sugar and edible oils. In 2003,  oils were 
excluded, and the bands currently apply to a total of 41 tariff lines for wheat, wheat flour and sugars.  
3.31.  Using a formula, a specific duty is added to the general MFN ad valorem  tariff (6%) when the 
international reference price for a product such as wheat or sugar f alls below the lower threshold 
(floor) of the price band, and a tariff reduction multiplied by a factor of one plus the ad valorem  
tariff is applied when the reference price exceeds the upper threshold (ceiling) of the band.45 Both 
the specific duty and th e tariff reduction must be equivalent to the difference between the 
 
45 Specific duty = (floor - reference price) * (1 + ad valorem  tariff) (Supreme Decree No.  831 
of 4 October  2003, Ministry of Finance).  WT/TPR/S/451/Rev.1  
- 55 - 
  international price and the upper and lower thresholds, respectively.46 For wheat flour, the duties or 
reductions determined for wheat, multiplied by a factor of 1.56, are applied.  
3.32.  The maximum possible reduction allowed by the price band system is a full discount of the 
6% MFN tariff, resulting in a zero -rate tariff, and the maximum duty payable is limited by the WTO 
bound tariff47, which is 31.5% for wheat and wheat flour, and 98% for sugars. The reference price 
is calculated every two months (wheat and wheat flour) or monthly (sugars) using the average daily 
international pr ices for wheat and sugar recorded on the most important markets48, and the floor 
and ceiling rates in the price bands. The floor and ceiling rates were set by law in 2003 and reviewed 
in late 2014.49 As a result of this review, it was established that the floor and ceiling rates for 
products subject to price bands should be permanent, and the rates in effect from 2015 to date are 
those which were in force in December  2014 (Table 3.4).50 The amounts of the increases and 
reductions are determined by a supreme  decree issued by the Ministry of Finance six times each 
year (over a period from 16  December to the following 15  December) for wheat and 12 times a year 
for sugars (over a period from 1  December to 30  November of the following year).51 
Table 3.4 Products subject to price bands, 2023  
Product  Floor price 
(USD)  Ceiling price 
(USD)  
Wheat (HS 1001.9000)  
Wheat flour (HS 1101.0000)  114 134 
Cane sugar (HS 1701.1100)  
Beet sugar (HS 1701.1200)  
Sugar containing added flavouring or colouring matter (HS  1701.9100)  
Cane sugar, refined (HS 1701.9910)  
Beet sugar, refined (HS 1701.9920)  
Other (HS 1701.9990)  238 259 
Source:  Supreme Decree No.  1.936 of 15 December 2014, Ministry of Finance.  
3.1.3.3   Tariff bindings  
3.33.   Chile bound all its tariffs in the Uruguay Round, with tariff levels ranging from 0% to 98%. The 
tariff levels applied to most tariff lines (98.2% of the total) are bound at 25%. A group of agricultural 
products are bound at 31.5% and comprise 107  tariff lines ( at the eight -digit level of HS 2017). 
These lines include various dairy products, wheat and wheat flour, oilseeds and oleaginous fruits, 
and vegetable fats and oils. The rate applicable to cane or beet sugar (six tariff lines at the eight -digit 
level of HS 2017) was bound at 98% after a rectification under Article XXVIII of the GATT.52 Some 
of these products, such as wheat, wheat flour and sugar, are also subject to the price band system. 
The goods bound at rates of less than 25% are: bone as h, at 0% (a single HS  subheading, 
2621.9010); certain boats, at 3% (three HS subheadings, 8901.9011, 8901.9012 and 8901.9019); 
vegetable carving material, at 15% (one HS subheading, 9602.0000); and certain turbines, at 23% 
(three HS subheadings, 8410.1110,  8410.1210 and 8410.1310).  The 6% MFN tariff rate applied to 
bone ash is the only one that appears to exceed its bound rate of 0%. In this connection, the 
authorities indicated that although the MFN tariff rate was 6%, bone ash falling under subheading 
 
46 Tariff reduction = (reference price - ceiling) * (1 + ad valorem  tariff) (Supreme Decree No.  831 
of 4 October  2003, Ministry of Finance).  
47 Information from the Offi ce for Agricultural Studies and Policy Development (ODEPA). Viewed at: 
https://www.odepa.gob.cl/odepaweb/publicaciones/Banda_de_Precios.pdf . 
48 According to Articles 8 and 12 of Supreme Decree No. 831 of 4 October 2003, the most important 
market for wheat is the market for Argentine bread wheat from 16  December to 15  June, and for Soft Red 
Winter wheat No.  2 from 16  June to 15  December. For r efined sugar, the most important market is the No.  5 
white sugar futures contract on the London Exchange, while for raw sugar it is the No. 11 raw sugar contract 
on the New York Exchange.  
49 Law No.  19.897 of 25 September 2003 and Supreme Decree No.  831 of 4 October 2003, Ministry of 
Finance.  
50 Supreme Decree No.   1.936 of 15  December  2014, Ministry of Finance, and Supreme Decree No.  831 
of 4 October  2003, Ministry of Finance.  
51 Article  1 of Supreme Decree No.  831 of 4 October 2003, Ministry of Finance.  
52 WTO document G/MA/TAR/RS/82 of 30  October  2001.  WT/TPR/S/451/Rev.1  
- 56 - 
  2621.9010 was subject to a 0% ad valorem  duty when originating from a WTO  Member, pursuant 
to National Legal Note No. 1 in Chapter 26 of the current Customs Tariff.53 
3.1.3.4   Tariff quotas  
3.34.  As a result of its modified Uruguay Round schedule of commitments, Chile has a n MFN tariff 
quota of 60,000 tonnes per year for refined cane or beet sugar (HS subheadings 1701.9910, 
1701.9920 and 1701.9990) shared between Argentina (21,000  tonnes per year), Guatemala 
(16,700 tonnes per year), Brazil (9,700 tonnes per year) and other countries (12,600 tonnes 
per year).54 The in -quota tariff is 0% and the out -of-quota tariff is applied using the price band 
system. Chile also applies a quota of 30,000 tonnes per year for products under HS subheading 
1701.9100 and another of 15,000 tonnes  for HS tariff subheadings 1701.91 and 1701.99. Since 
2009, 50% of the 30,000 -tonne quota for HS subheading 1701.9100 has been allocated to Colombia, 
and the rest could be of any origin, including Colombia. The 15,000 -tonne quota for HS tariff 
subheadings 1701.91 and 1701.99 is currently allocated to the Plurinational State of Bolivia 
(6,000  tonnes), Colombia (6,000 tonnes), Honduras (1,000 tonnes) and any country of origin 
(2,000  tonnes), which can include the Plurinational State of Bolivia, Colombia and H onduras.55 
3.35.  Regarding the allocation of quotas on the domestic market, sugar imported under tariff quotas 
must be used as an input in the manufacture of food products for the domestic market, which must 
also result in a change of tariff heading. Up to 20% of the total tariff quota can be allocated to each 
importer. Quotas are allocated following a tender procedure organized by the National Customs 
Service, and are proportional to the total amount of sugar actually processed and used as an input 
in the m anufacture of food preparations for the domestic market by each of the producers. Each 
producer's share of the sugar used is calculated based on the total use declared by all producers, 
applying a formula published in the Official  Journal.56 
3.36.  The National Customs Service issues one call for tenders every year to fill the quota. The 2023 
call for tenders for the 60,000 -tonne (heading 1701.99), 15,000 -tonne (subheadings 1701.91 and 
1701.99) and 30,000 -tonne (subheading 1701.9100) quotas was declared void.57 According to 
information from the National Customs Service, the quotas were not used during the period under 
review.58 Exempt Resolution No. 2.904 of 9 November 2022 declared the quota allocation void.59 
The website of the National Customs Service provides detailed information about the annual quota 
allocation.60 The 2023 situation is not unusual; according to the authorities, the process has been 
declared void since 2014 because the MFN tariff rate was 0% as a result of the price band system.  
3.37.  Chile has negotiated other preferential tariff quotas as part of the trade agreements it has 
signed with the Plurinational State of Bolivia (meat), Ecuador (meat, dairy and sugar), Guatemala 
(powdered milk, condensed milk, yogurt, butter, cheese, dulce de leche  and tomato purée), Japan 
(meat), Norway (Jarlsberg and Ridder cheeses), the European Union (cheese, hake, salmon and 
prepared tuna) and the United Kingdom (cheese, hake, salmon and prepared tuna). The tariffs 
applicable to these preferential quotas vary a ccording to the agreement.  
3.1.3.5   Tariff concessions  
3.38.  All goods imported into Chile are subject to the payment of import duty, except for the goods 
expressly declared exempt by law. Section 0 of the Chilean Customs Tariff lists the goods that may 
be imported with total or partial relief from duties for a specific purpose or use. As a general rule, 
 
53 National Legal Note No. 1 in Chapter 26 of the current Customs Tariff can be viewed at: 
https://www.aduana.cl/arancel -aduanero -vigente/aduana/2016 -12-30/090118.html . 
54 WTO document G/MA/TAR/RS/82 of 30  October  2001.  
55 Exempt Resolution No. 2.471 of 21 September 2022, National Customs Service.  
56 Exempt Resolution No. 4.062 of 31 October 2003, National Customs Service, as amended by Exempt 
Resolution No.  2.897 of 5 July 2005.  
57 Exempt Resolution No. 2.904 of 9 November 2 022, National Customs Service. Viewed at: 
https://www.aduana.cl/contingente -de-azucar -proceso -2023/aduana/2022 -09-23/113322.html . 
58 Information from the National Customs Service. Viewed at: 
http://comext.aduana.cl:7001/cupos/buscar.do . 
59 Information from the National Customs Service. Viewed at: 
https://www.aduana.cl/aduana/site/docs/20220923/20220923113322/res__2904_09_11_2022.pdf . 
60 Information from the National Customs Service. Viewed at: 
https://www.aduana.cl/aduana/site/edic/base/port/normativas.html?f iltro=20190118000549 . WT/TPR/S/451/Rev.1  
- 57 - 
  these exemptions apply to imports of goods for use by, inter alia , government bodies, foreign service 
officials, international organizations, educational and social assis tance  institutions, religious 
communities, and air and maritime transport companies, as well as to donations, samples of goods 
of no commercial value and certain automobile parts.  
3.39.  The ad valorem  duties specified in various headings in Section 0 of the Cust oms Tariff apply 
provided that they are lower than those determined for the same tariff headings in the Customs 
Tariff. Otherwise, the rates set for each tariff line in Chapters 1 to 97 of the Tariff apply.  
3.40.  A 0% tariff is applied to imports of certain capi tal goods pursuant to Law No.  20.269 
of 27 June 2008. This tariff is applied on an ad hoc  basis to capital goods that fit the definition under 
Law No.  18.634.61 Capital goods and components, spare parts, replacement parts and accessories 
for such goods tha t may be eligible for exemption are included in a list drawn up in a decree by the 
Minister of Finance. Interested parties may submit a request to the Ministry of Finance for a capital 
good to be included in or excluded from the list.  
3.41.  Furthermore, the paym ent of customs duties and taxes on purchased or leased capital goods 
may be deferred for up to seven years after validation of the appropriate import declaration. To 
benefit from this payment facility, the imported capital goods must have a minimum c.i.f. value of 
USD 7,387.89 or its equivalent in other currencies, except for land vehicles for carrying people or 
freight by road, including trailers, which must have a c.i.f. value of more than USD  9,358.01 or its 
equivalent in other currencies. This facility has also been extended to the tax on imports of 
automobiles used for public passenger transport (taxis) with a c.i.f. value not exceeding 
USD 14,775.93 (this amount is updated yearly).62 
3.42.  Chile also maintains tariff concessions within free zones (Section 3. 3.1). 
3.1.3.6   Preferential tariffs  
3.43.  Chile applies a zero tariff on all products originating from least developed countries (LDCs), 
except in the case of wheat, wheat flour and sugars.63 Under Law No.  20.690 of 28  September  2013, 
tariffs were unilaterally eliminated  for all goods originating from LDCs, excluding wheat, wheat flour 
and sugars, which are subject to specific rules under Law No.  18.525. This Law regulates goods 
imported into the country and its revised, coordinated and consolidated text was approved by D ecree 
with Force of Law (DFL) No. 31 of 2005 of the Ministry of Finance. It also provides for a gradual 
reduction in duties, starting with countries with greater external vulnerability. Supreme Decree 
No. 1.432 of the Ministry of Finance, published on 28  February  2014, includes a list of the LDCs to 
which this benefit applies from the first, second and third year after the Law's entry into force, as 
well as the requirements that the goods must meet in order to qualify as originating from an LDC 
and receive preferential treatment. To receive such treatment, the goods must be wholly obtained 
or produced in the territory of the beneficiary country and be produced entirely in the territory of an 
LDC using only originating inputs. Preferential treatment can also be granted to goods produced 
using non -originating materials, provided that certain requirements are met. A certificate of origin 
must be provided at the time of importation to prove that the goods are originating.  
3.44.  During the period under review, Chile has  continued consolidating and expanding its 
preferential arrangements and, consequently, tariff preferences in its foreign trade (Section  2.2.1). 
However, as the MFN tariff is relatively low, the margin of preference is not considerable and varies 
depending  on the agreement. Chile also grants tariff preferences to several countries under economic 
 
61 "Capital goods" means those machines, vehicles, equipment and tools that are intended, directly or 
indirectly, for the production or marketing of goods or services. These must be goods that retain their 
production capacity for a period of no less than three years after their first use, with a gradual process of wear 
and tear or depreciation extending over a longer period. Goods intended to perform supplementary or support 
functions, such as packagin g, selection, maintenance, analysis and marketing of the manufactured products, 
are understood to be indirectly involved in the production process. Article 2 of Law No.  18.634 
of 5 August  1987, as last amended on 30 June 2022. Viewed at: 
https://www.bcn.cl/leychile/navegar?idNorma=30024 . 
62 Law No. 18.634 of 5 August 1987 and amendments thereto.  
63 Law No.  20.690 of 28  September  2013 and WTO document G/C/W/695 -WT/COMTD/N/44 of 
14 April 2014.  WT/TPR/S/451/Rev.1  
- 58 - 
  complementarity agreements  concluded within the framework  of the Latin American Integration 
Association (LAIA). In all, Chile has signed 32 trade agreements with 60 economies (Table  A2.2).  
3.45.  The average preferential tariff in the agreements negotiated by Chile ranges between 0% and 
1%, with the exception of the agreements with Cuba, India and Indonesia, which are partial scope 
agreements. Under most o f the agreements, bar the three mentioned above, duty -free lines account 
for over 95% of the tariff universe (Table 3.5).  
Table 3.5 Summary analysis of preferential tariffs, 2021  
 
Number  
of lines  
with a prefer ential 
tariff  
Percentage  
of lines with 
preference  
(%) Total  WTO categories  Average  
(%) 
Duty -free 
lines (%)  Agricultural 
products  Non-agricultural 
products  
(including 
petroleum)  Average 
(%) 
Duty -free 
lines  
(%) 
Average 
(%) 
Duty -free 
lines  
(%) 
MFN 0 0 5.9 0.4 5.8 0.0 6.0 0.5 
Australia  8,525  99.6 0.0 99.9 0.0 99.5 0.0 100.0  
Plurinational State of  
Bolivia  8,488  99.1 0.0 99.5 0.0 97.2 0.0 100.0  
Canada  8,400  98.1 0.1 98.5 0.3 91.5 0.0 100.0  
China  8,362  97.7 0.1 98.1 0.1 96.2 0.1 98.5 
Colombia  8,525  99.6 0.0 99.5 0.0 97.2 0.0 100.0  
Cuba 2,101  24.5 4.5 24.2 4.4 25.4 4.5 24.0 
Ecuador  8,171  95.4 0.2 95.9 1.0 81.2 0.1 98.9 
European Union  8,358  97.6 0.1 98.0 0.6 90.3 0.0 99.6 
Hong Kong, China  8,333  97.3 0.1 97.8 0.2 96.0 0.1 98.1 
India 2,114  24.7 4.8 7.9 5.4 4.0 4.7 8.7 
Indonesia  7,840  91.6 0.9 78.4 1.5 69.8 0.8 80.2 
Japan  7,959  93.0 0.4 92.6 1.4 73.8 0.2 96.5 
Korea, Republic of  8,392  98.0 0.1 98.4 0.2 93.6 0.0 99.5 
Malaysia  8,387  98.0 0.1 98.4 0.3 92.8 0.0 99.5 
MERCOSUR  8,510  99.4 0.0 99.8 0.0 100.0  0.0 99.8 
Mexico  8,407  98.2 0.1 97.8 0.4 92.4 0.1 98.9 
P4a 8,525  99.6 0.0 100.0  0.0 100.0  0.0 100.0  
Pacific Alliance  8,503  99.3 0.0 99.7 0.1 98.5 0.0 100.0  
Panama  8,464  98.9 0.0 99.3 0.0 97.1 0.0 99.7 
Peru 8,510  99.4 0.0 99.3 0.0 97.2 0.0 99.8 
Thailand  8,525  99.6 0.0 98.3 0.1 93.0 0.0 99.4 
Türkiye  8,325  97.2 0.1 97.7 0.6 86.8 0.0 99.9 
United Kingdom  8,358  97.6 0.1 98.0 0.6 90.3 0.0 99.6 
United States  8,525  99.6 0.0 100.0  0.0 100.0  0.0 100.0  
Venezuela, Bolivarian 
Republic of  8,097  94.6 0.3 95.0 0.4 90.0 0.2 96.0 
Viet Nam  8,503  99.3 0.1 91.6 0.1 95.6 0.2 90.8 
LDCs (2020)  8,484  99.1 0.0 99.5 0.0 97.2 0.0 100.0  
Central America          
Costa Rica  8,200  95.8 0.2 96.2 0.9 82.8 0.1 99.0 
El Salvador  8,052  94.1 0.3 94.5 1.0 80.4 0.2 97.4 
Guatemala  7,875  92.0 0.5 89.8 1.2 75.8 0.3 92.7 
Honduras  8,456  98.8 0.0 99.2 0.1 96.4 0.0 99.8 
Nicaragua  8,461  98.8 0.0 98.9 0.1 95.5 0.0 99.6 WT/TPR/S/451/Rev.1  
- 59 - 
   
Number  
of lines  
with a prefer ential 
tariff  
Percentage  
of lines with 
preference  
(%) Total  WTO categories  Average  
(%) 
Duty -free 
lines (%)  Agricultural 
products  Non-agricultural 
products  
(including 
petroleum)  Average 
(%) 
Duty -free 
lines  
(%) 
Average 
(%) 
Duty -free 
lines  
(%) 
EFTA         
Switzerland  7,386  86.3 0.8 86.3 4.4 22.7 0.0 99.4 
Norway  7,434  86.8 0.8 86.8 4.4 23.1 0.0 100.0  
Iceland  7,866  91.9 0.5 91.9 2.6 52.6 0.0 100.0  
a Trans -Pacific Strategic Economic Partnership.  
Notes:  The calculation of the averages excludes the ad valorem  equivalents for the lines subject to price 
bands.  
 The MFN and preferential tariffs are in the HS 2017 nomenclature, and the total number of lines 
is 8,561.  
 For the seven trading partners for which preferential tariff quotas apply, in -quota tariffs are e xcluded 
from the calculations.  
 When a preferential tariff rate applies to only part of a line, the lower tariff rate is used for the 
calculations.  
 For Mexico, 18 tariff lines are subject to seasonal tariffs.  
Source:  WTO Secretariat, based on data provide d by the authorities.  
3.1.4   Other charges affecting imports  
3.46.  Imported goods may be subject to indirect taxes and other charges, where applicable. Fees 
are collected for some services provided by the National Customs Service; the fee amount is 
regulated. A fee is charged for verification through value assessment inspections, which are 
conducted when the destination documents submitted do not contain the information needed to 
enable the customs officer to verify the accuracy of the declaration. In accordance with th e 
Customs  Ordinance, the fee for verification through this type of assessment depends on the customs 
destination, the scale of the service provided and the work it involves; it cannot be lower than 
0.5%  of the goods' customs value (or 1% of the customs val ue in the case of imports through the 
post). Storage fees are also applied and depend on the length of time for which the goods remain 
with Customs.  
3.47.  The importation and domestic sale of goods and services are subject to the tax on sales and 
services (known  as VAT), which is applied at a rate of 19% of the value of the goods sold or the 
service provided.64 In the case of imports of goods, VAT is calculated on the basis of the c.i.f. value 
plus the import duty. Some operations are exempt from the payment of V AT, depending on the use 
or destination of the goods. For example, domestic or imported components or spare parts used in 
manufacturing or assembly, which enter or re -enter Chile from free zones, are exempt from VAT 
(Section 3.3.1).  
3.48.  In accordance with Law No. 21.420 published on 4 February 2022, from 1  January  2023, VAT 
is levied on all services, with the exception of services provided by natural persons that issue boletas 
de honorarios  (invoices for services rendered); passenger transport services; educati on services; 
outpatient health services; and the income of professional partnerships registered with the Internal 
Revenue Service (SII).  
3.49.  Imports of used goods are subject to payment of a 50% surcharge on the general tariff (or 
the preferential tariff, wher e applicable), except when the used product is imported by an individual, 
is of a non -commercial nature and has a c.i.f value of under USD 100. Certain types of used vehicles, 
 
64 Decree Law No. 825 (Law on the Tax on Sales and  Services) of 31 December 1974 and amendments 
thereto (last amended on 4 February 2022), Ministry of Finance.  WT/TPR/S/451/Rev.1  
- 60 - 
  including cleaning vehicles, ambulances and other specialized vehicles are exemp t from this 
surcharge.  
3.50.  Additional taxes are levied on certain domestic and imported products. This is the case for 
luxury products, alcoholic and non -alcoholic beverages and like products, tobacco and fuel 
(Table  3.6). The products to which these additiona l taxes are applied have not changed since the 
previous review in 2015; the only change was the increase from 27% to 31.5% in the tax on liqueurs, 
pisco and other alcoholic beverages.  
Table 3.6 Additional taxe s, June 2023  
Tax Product  Rate (%)  Tax base  
Imports  Domestic 
products  
Tax on luxury 
products  Articles made of gold, platinum and 
ivory; jewellery, precious stones; 
furskins; rugs and fine tapestries; 
caviar; motorhomes; and air or 
compressed gas guns 15 Customs value 
plus import duty  Selling price at all 
transaction levels  
Pyrotechnic articles (fireworks), 
unless for industrial, mining or 
agricultural use  50 Customs value 
plus import duty  Selling price at all 
transaction levels  
Tax on 
beverages  Non-alcoholic beverages (mineral 
waters, artificial beverages and 
syrups)  10 or 18 
depending on 
sugar content  Customs value 
plus import duty  Selling price at all 
transaction levels, 
except for retail sale  
Alcoholic beverages:  
Sparkling wines, champagne, 
full-bodied wines or sweet wines, 
chicha, cider and beer  20.5 Customs value 
plus import duty  Selling price at all 
transaction levels, 
except for retail sale  
Liqueurs, pisco, whiskies, distilled 
spirits, including liqueur wines or 
aromatized wines similar to 
vermouth  31.5 Customs value 
plus import duty  Selling price at all 
transaction levels, 
except for retail sale  
Tax on 
tobacco 
products  Cigars  52.0 Consumer price  Consumer price  
Cigarettes  0.0010304240 
UTMa per 
cigarette plus 
30% tax on the 
consumer 
price, per 
packet  Consumer price  Consumer price  
Processed tobacco  59.7 Consumer price  Consumer price  
Tax on fuel  Gasoline  6 UTMa/m3 Customs value 
plus import duty 
plus VAT  Producer price, 
including VAT 
(first sale) 
Diesel  1.5 UTMa/m3 Customs value 
plus import duty 
plus VAT  Producer price, 
including VAT 
(first sale) 
a The Unidad Tributaria Mensual  (UTM) (monthly tax unit) is an economic unit used for taxation 
purposes and adjusted monthly according to the consumer price index (Section  1). In May 2023, 
1 UTM was equivalent to CLP 63,074.  
Source:  SII website. Viewed at: https://www.sii.cl/ayudas/aprenda_sobre/3072 -5-3079.html . 
3.1.5   Import prohibitions, restrictions and licensing  
3.51.  Chile prohibits the importation of various goods pursuant to its domestic  legislation and/or 
based on its commitments under international agreements.65 Generally speaking, the purpose of the 
prohibitions is to protect human, animal and plant health, the environment and public safety. They 
apply regardless of the origin of the g oods.  
 
65 Chilean Customs. Viewed at: https://www.aduana.cl/que -mercancias -puedo -importar -y-cuales -estan -
prohibidas/aduana/2020 -11-16/103555.html . WT/TPR/S/451/Rev.1  
- 61 - 
  3.52.  The importation of used vehicles and motorcycles66 and used and retreaded tyres67 is 
expressly prohibited. It is also forbidden to import asbestos in all forms68, in addition to goods that 
are harmful to human health, animals or agriculture (for example, toys and articles for children that 
contain toluene, adhesives with a volatile solvent base and certain pesticides for agricultural use). 
For public safety reasons, it is forbidden to import certain tear gases and other elements w ith 
physiological effects on humans69, in addition to fireworks and pyrotechnic articles.70 Moreover, the 
illicit trafficking of cultural goods is prohibited.  
3.53.  Chile prohibits the importation of endangered animals and plants, in accordance with the 
Conventi on on International Trade in Endangered Species of Wild Fauna and Flora (CITES); of toxic 
industrial waste, pursuant to the Basel Convention; and of ozone -depleting substances, in line with 
the Montreal Protocol. The importation of radioactive substances a nd materials and ionizing 
radiation -generating equipment is also prohibited, except in the case of authorized materials.  
3.54.  Chilean legislation does not permit the imposition of quotas for imports (or exports). As a 
result, Chile does not apply quantitative r estrictions.71 
3.55.  The importation of certain products is subject to prior control through authorizations, 
certifications, endorsements or approvals (Table 3.1). In addition, the Agriculture and Livestock 
Service applies various measures prohibiting or restricting the import ation of different types of 
pesticides and anabolics promoting bovine growth, among other measures. In 2022, in the interest 
of transparency, Chile submitted a notification to the Committee on Import Licensing under 
Article  7.3 of the Agreement on Import L icensing Procedures.72 The document describes the 
authorizations, certifications or approvals that, for various reasons, are required in order for certain 
products to enter the country.  
3.1.6   Anti-dumping, countervailing and safeguard measures  
3.1.6.1   Legal framework  
3.56.  Chilean trade defence legislation includes Law No. 18.525 of 30 June 1986 (Regulations on 
the Importation of Goods into Chile) and the amendments thereto73, and Decree No.  1.314 of 
22 March  2013 approving the Anti -Distortion Regulations. Moreover, the WTO An ti-Dumping 
Agreement, Agreement on Subsidies and Countervailing Measures and Agreement on Safeguards 
constitute domestic law in Chile. The provisions on contingency measures established in the trade 
agreements signed by the country also form part of this l egal framework. No changes have been 
made to the legislation in this area since the previous review in 2015.  
3.57.  The National Commission responsible for investigating distortions in the price of imported 
goods (CNDP) is the competent authority to conduct inves tigations into dumping, subsidization and 
safeguards and, where appropriate, to propose the application of the corresponding duties.74 The 
President of the Republic determines to which goods these duties will be applied, as well as the 
amount and duration of these duties, based on a recommendation from the CNDP.  
 
66 Law No. 18.483 of 28 De cember 1985.  
67 Exempt Decree No. 1.358 of 4 October 2010, Ministry of Health.  
68 Decree No. 656 of 13 January 2001, Ministry of Health.  
69 Law No. 17.798 of 21 October 1972 and its implementing Regulations.  
70 Decree No. 77 of 14 August 1982, Ministry of Nati onal Defence.  
71 Article 88 of Law No. 18.840 (Constitutional Organic Law of the Central Bank of Chile) 
of 10 October  1989.  
72 WTO document G/LIC/N/3/CHL/9 of 29 March 2022.  
73 Decree with Force of Law No. 31 of 22 April 2005 approving the revised, coordinate d and consolidated 
text of Law No. 18.525 establishing regulations on the importation of goods into Chile, Ministry of Finance.  
74 The CNDP is composed of the National Prosecutor, two representatives of the Central Bank, 
one representative of the Ministry of Finance, one representative of the Ministry of Foreign Affairs, 
one representative of the Ministry of Economic Affairs, one representative of the Ministry of Agriculture and the 
Director -General of Customs. The Central Bank is in charge of the CNDP's Technical Secretariat.  WT/TPR/S/451/Rev.1  
- 62 - 
  3.1.6.2   Anti-dumping and countervailing measures  
3.58.  An investigation into dumping or subsidization is initiated through the submission by the 
affected domestic industry of a written application to the CNDP.75 The application must contain 
evidence of price distortion that is causing actual or imminent material injury to the domestic 
industry. The CNDP is empowered to initiate investigations ex officio  if it has information to justify 
this.76 Once an application has been declared admissible, the CNDP initiates the investigation to 
determine whether there is distortion and whether it is causing or threatening to cause injury to the 
domestic industry. Once 60 days have elapsed since the initiation of the investigati on, the CNDP 
may recommend that the President of the Republic apply provisional duties. The application period 
for provisional anti -dumping duties must not exceed six months.  
3.59.  Pursuant to Decree No. 1.314, investigations into dumping or subsidization must b e concluded 
within nine months from the date of publication of the notice of initiation. If, upon conclusion of the 
investigation, the CNDP determines that there are price distortions and that they are causing actual 
or imminent material injury to the dome stic industry, it issues a resolution recommending that the 
President of the Republic apply definitive anti -dumping or countervailing duties. These duties may 
not exceed the margin of the distortion and their duration may not exceed one year. If the Presid ent 
decides to apply surcharges, he or she does so through a supreme decree of the Ministry of Finance 
ordering the implementation of the measure. The President may choose not to impose the 
recommended duties or to impose a lower duty, but may not impose a  duty higher than that 
recommended. A feature of the Chilean regime is that duties are non -renewable and may only be 
extended if the CNDP carries out a new investigation and concludes that it is necessary to apply a 
new duty. The CNDP may, at any stage and  provided that its decision is substantiated, recommend 
that the measures in effect be modified or terminated prior to their expiry.  
3.60.  If the investigation shows that there are no price distortions or that there are distortions but 
they are not causing actua l or imminent material injury to the domestic industry, the CNDP issues a 
resolution terminating the investigation. In the event that provisional measures had been applied, 
the individuals affected may request that the duties paid be refunded. It is also p ossible to request 
the reimbursement of the difference paid when the provisional duties are higher than the definitive 
duties.  
3.61.  Decrees concerning the initiation and termination of investigations, and preliminary and final 
determinations, must be published in the Official Journal. Chilean legislation permits the retroactive 
application of definitive duties under certain circumstances. It does not provide for the application 
of anti -circumvention measures.  
3.62.  Chile is not a frequent user of trade defence measure s. Between January 2015 and 
December  2022, Chile initiated eight anti -dumping investigations, one of which was ex officio . Most 
of these investigations concerned steel products from China (five cases) and Mexico (two cases), 
while one investigation involve d wheat flour from Argentina. Five of the investigations resulted in 
the imposition of definitive duties, in two cases it was decided not to apply measures and one 
investigation ended due to the withdrawal of the petitioner.77 As of late June 2023, Chile w as not 
applying any anti -dumping duties and had no investigations under way.  
3.63.  From January 2015 to December 2022, Chile did not initiate any subsidies investigations and 
notified the WTO that it had not adopted any countervailing duty actions.  
3.64.  It should be noted that some of the trade agreements signed by Chile (the agreements with 
Canada and EFTA) contain a commitment under which the parties agree not to apply anti -dumping 
measures to each other. Other agreements simply reaffirm the provisions of the WTO  Anti-Dumping 
 
75 The application shall be considered to have been made "by or on behalf of the domestic industry" if it 
is supported by those domestic producers whose collective output constitutes more than 50% of the total 
production of the  like product produced by that portion of the domestic industry expressing either support for 
or opposition to the application. The CNDP may not initiate an investigation when domestic producers expressly 
supporting the application account for less than 25 % of total production of the like product produced by the 
domestic industry.  
76 Article 9 of Decree with Force of Law No. 31 of 22 April 2005, Ministry of Finance, and Article  15 of 
the Anti -Distortion Regulations.  
77 CNDP statistics. Viewed at: https://www.cndp.cl/web/cndp/antecedentes -relativos -a-investigaciones -
del-per%C3%ADodo -1999-a-la-fecha . See also Ch ile's notifications to the WTO.  WT/TPR/S/451/Rev.1  
- 63 - 
  Agreement (for example, the agreements with Australia, China, Colombia, Ecuador, the Republic of 
Korea, Malaysia, Thailand, Türkiye and the United States), while others do not include provisions on 
this subject (the agreements with Japan, Mexico  and India).  
3.1.6.3   Safeguard measures  
3.65.  Safeguard investigations are initiated through a written application by a domestic industry78 
or ex officio . The CNDP  must conclude the investigation within 90 days of the date of initiation and 
decide whether, in the light of the information available, it can be determined that a product has 
been imported in such increased quantities and under such conditions as to caus e or threaten to 
cause serious injury to the domestic industry that produces like or directly competitive products. If 
it determines that this is the case, the CNDP issues a resolution recommending that the President 
of the Republic apply tariff surcharges . Chile does not apply quantitative safeguards. As is the case 
with anti -dumping and countervailing duties, the President has exclusive authority to decide whether 
to apply tariff surcharges and, if he or she decides to do so, these tariff surcharges are i ssued 
through a supreme decree of the Ministry of Finance. Moreover, the President may decide not to 
impose the safeguard measure or to apply a lower surcharge, but may not apply a surcharge higher 
than that recommended.  
3.66.  Tariff surcharges are determined on  an ad valorem  basis; specific tariffs may not be applied. 
If the recommended surcharge, added to the tariff in effect, exceeds Chile's WTO bound tariff, the 
application of this surcharge must be approved by three quarters of the CNDP's members. Safeguard 
measures may be provisionally applied within the 30 day -period following the initiation of the 
investigation and may remain in effect for a maximum of 200 days.  
3.67.  The duration of definitive safeguard measures may not exceed two years from the publication 
of the decree ordering their application. The measures may be extended by the President for a 
maximum of two years, at the request of the affected domestic industry and subject to a favourable 
report from the CNDP or following a study carried out ex officio by the CNDP . In the event that 
provisional measures had been applied, the two -year period is counted from the date of publication 
of the decree ordering those measures. Pursuant to Law No. 18.525 and the amendments thereto, 
a measure must be reviewed annual ly when its application period exceeds one year, and a timetable 
for its gradual dismantling must be established. However, the CNDP may, at any stage, recommend 
that the surcharges be modified or terminated prior to their expiry.  
3.68.  From January 2015 to Decem ber 2022, Chile initiated five safeguard investigations, all at the 
request of a party. Four investigations concerned steel products (wire rod, mesh, nails and wire) 
and one involved dairy products (powdered milk and Gouda cheese). The five investigations were 
notified to the WTO.79 In one case (steel wire rod), the investigation resulted in the application of 
provisional measures, which were subsequently confirmed with the application of a definitive 
surcharge (38.9%) for six months.80 The other investigat ions were terminated without the imposition 
of measures. There were no safeguard measures in effect or investigations under way as of late 
June 2023.  
3.69.  The trade agreements signed by Chile include provisions on safeguard measures of a bilateral 
or global nat ure or that seek to protect sensitive sectors. Some of these agreements set out 
conditions providing for the exemption of one or more parties from the application of global 
safeguards adopted under the WTO Agreement on Safeguards.  
3.70.  The application of the sa feguard measures provided in the trade agreements is governed, on 
a supplementary basis, by the provisions of Law No.  18.525, the amendments thereto and its 
implementing Regulations. In the event that these provisions are inconsistent with those contained 
in the trade agreements, the latter shall prevail to the extent of the inconsistency. In addition, Law 
No. 18.525 provides for the possibility for another country to receive compensation for the 
 
78 The application must be submitted by representatives of the relevant domestic industry that is 
suffering material injury or a threat thereof, namely, the producers as a whole of the like or directly 
competitive products or  those whose collective output of the like or directly competitive products constitutes a 
major proportion of the total domestic production.  
79 WTO documents G/SG/N/6/CHL/16 of 8 October 2015; G/SG/N/6/CHL/17, G/SG/N/6/CHL/18 and 
G/SG/N/6/CHL/19 of 3 Decemb er 2015; and G/SG/N/6/CHL/20 of 9 March 2018.  
80 WTO document G/SG/N/8/CHL/7 of 12 April 2016.  WT/TPR/S/451/Rev.1  
- 64 - 
  application of a safeguard measure and establishes that, when  so agreed, the President of the 
Republic may, through a supreme decree of the Ministry of Finance and during the measure's 
application period, reduce the tariffs or expedite the tariff reduction process provided under the 
corresponding trade agreement. Th e President also has the authority to raise the tariffs on goods 
from another country when no agreement has been reached on adequate compensation for the 
application by that country of a safeguard measure on Chilean goods.81 
3.1.7   Other measures affecting imports  
3.71.  Chile does not apply local content requirements.  
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.72.  The laws and regulations governing customs export procedures include the Customs 
Ordinance and the amendments thereto , the Organic Customs Law and the amendments thereto, 
the Compendium of Customs Regulations, and various regulations and resolutions.  
3.73.  As a general rule, the exit process for goods begins with the presentation of these goods 
before the National Customs Serv ice via the single export document - acceptance for processing 
(DUS -AT).82 This document must include all the required information, including the customs 
procedure to be applied to the goods upon leaving Chile. There are three types of customs exit 
procedu re: export, re -export or temporary exit. The exporter may carry out the formalities directly 
if the f.o.b. value of the goods does not exceed USD 2,000.83 For shipments of a greater value, the 
services of a customs broker are required. Express shipment com panies can carry out customs 
clearance for exports of goods worth up to USD 3,000.  
3.74.  The documents required to prepare the DUS -AT are: the shipping instructions, the transport 
documents (bill of lading, waybill or airway bill) and freight documents, a copy o f the commercial 
invoice, the clearance mandate and, where applicable, the document authorizing the procedure and 
any quality certificates, approvals or other authorizations. The customs broker completes and 
forwards the DUS -AT electronically to the Nation al Customs Service. The acceptance of the DUS for 
processing means that the goods have been presented to Customs and are authorized to enter the 
primary zone or be shipped abroad.  
3.75.  Goods for export may be selected, using a risk profile -based analysis, for p hysical inspection 
and a document check. The authorities indicated that, of a total of 600,951 DUS -ATs processed in 
2022, 2.5% were selected for physical inspection and a document check. After any necessary 
inspections have been conducted and Customs has a ccepted the DUS, the goods must be loaded 
within 25 calendar days from the date on which the DUS was accepted for processing. To conclude 
the export operation, the legalization of the DUS must be requested.84 Obtaining legalization means 
that the customs p rocedure has been formalized and all the legal and regulatory procedures required 
for the goods to leave Chile have been completed. The legalized DUS constitutes the customs 
declaration.  
3.76.  Chile's single window for foreign trade (SICEX) contains a module all owing for the electronic 
processing of export operations and the interconnection of the various public and private agencies 
involved in exportation. SICEX is operated by the Ministry of Finance. The export module began to 
operate as a pilot plan in 2016 an d, since 2018, has covered all export operations and all goods. 
Through the SICEX portal, it is possible to submit an export declaration, carry out all the procedures 
required by Customs and request authorizations, endorsements and certificates from the re levant 
public services, which are to be submitted in the exports' countries of destination, where required. 
 
81 Article 7 of Law No. 18.525 of 30 June 1986 and amendments thereto.  
82 The procedures and steps for exporting are detailed in Chapter 4 of the Compendium of Cust oms 
Regulations. Viewed at: 
https://www.aduana.cl/aduana/site/artic/20070216/pags/20070216180251.html#vtxt_cuerpo_T2 . 
83 Article 2.1.2 of Chapter 4 of the Compendium of Customs Regulations lists the circumstances under 
which the services of a customs broker are not required.  
84 The procedures and documents for legalizing the DUS are detailed in Chapter 4, Section 8, of the 
Compendium of Customs Regulations.  WT/TPR/S/451/Rev.1  
- 65 - 
  Twelve public services currently make up SICEX (Section  3.1.1.2). Use of SICEX is voluntary, 
although it is expected to be made mandatory in the fut ure. In 2022, 88% (in USD f.o.b. terms) of 
goods export operations were carried out through SICEX, compared to 1.04% in 2016.  
3.2.2   Taxes, charges, and levies  
3.77.  By law, exportation does not require the payment of duties.85 Moreover, goods exports are 
exempt from V AT, as are services provided to persons not domiciled or resident in Chile, on the 
condition that the National Customs Service declares these services to be an export.86 Pursuant to 
Law No. 20.956 of October 2016, this exemption is applicable to services p rovided "entirely or 
partially in Chile". In the past, they had to be provided entirely in the country.  
3.78.  Exporters of goods may recover any VAT paid when purchasing goods or using services for 
their export activities, in addition to any paid when importing goods used to manufacture products 
to be exported.87 Exporters of services also have the right to recover the VAT paid on services 
provided to persons not domiciled or resident in Chile, on the condition that the service is declared 
to be an export by Cust oms. The service must be exclusively provided abroad (with the exception 
of services provided for goods in transit). Law No. 20.956 provides for the recovery of the VAT paid 
on inputs when the service is entirely provided abroad, on the condition that the service is taxable 
in Chile and an internal tax similar to VAT is applied in the country in which the service is being 
provided.88 
3.2.3   Export prohibitions, restrictions, and licensing  
3.79.  Generally speaking, Chile does not prohibit exports or apply quantitative restrictions to 
them.89 The few prohibitions or restrictions applied are to protect human health, the environment 
and cultural heritage, and to comply with international conventions (Montreal Protocol, CITES, 
UNESCO conventions, etc.). Product s that may not be exported include psychotropic substances, 
Chilean pine ( araucario araucana ) and anthropological, archaeological, ethnic, historical and 
paleontological objects and items. Furthermore, while Chile does not have an export licensing 
regime, there are certain products that require certifications, authorizations or endorsements in 
order to be exported.90 
3.2.4   Export support and promotion  
3.2.4.1   Export support  
3.80.  Chile continues to operate a number of export promotion programmes, which essentially 
consist of t ariff concessions in the form of a customs duty drawback scheme.  
3.81.  Under Law No. 18.708, a general system is applied through which exporters may obtain 
refunds for customs duties and other charges paid on the importation of raw materials, 
 
85 Article  112 of the Customs Ordinance.  
86 Article 12(E) of Decree Law No. 825 of 31 December 1974 and amendments thereto, M inistry of 
Finance, and Exempt Resolution No. 2.511 of 19 May 2007, amended by Exempt Resolution No.  7.192 of 
24 November  2016.  
87 Article 36 of Decree Law No. 825 of 31 December 1974 and amendments thereto, Ministry of Finance.  
88 Article 36 of Decree Law N o. 825 of 31 December 1974, Ministry of Finance, amended by Law 
No. 20.956 of 26 October 2016.  
89 Article 88 of Law No. 18.840 (Constitutional Organic Law of the Central Bank of Chile) of 
10 October  1989.  
90 These products include: firearms, ammunition, expl osives and inflammable or asphyxiating chemical 
substances and the facilities for their manufacture or deposit (Directorate -General of National Mobilization); 
enriched fissile or radioactive elements or materials, radioactive substances, devices or tools t hat emit ionizing 
radiation (Chilean Nuclear Energy Commission); works by Chilean or foreign artists (Directorate of Libraries, 
Archives and Museums of the Ministry of Education); plant products (SAG); written or audiovisual material 
relating to martial ar ts for teaching purposes (Directorate -General of National Mobilization); specimens of wild 
fauna or their by -products, certified bean seeds (SAG); fisheries products, meat of king crabs, snow crabs, 
prawns and abalone, and gracilaria seaweed (National Fish eries Service); species of wild fauna and flora 
protected under CITES; and pharmaceuticals and cosmetics (Institute of Public Health). See Compendium of 
Customs Regulations, Annex 40: https://www.aduana.cl/compendio -de-normas -anexo -40/aduana/2007 -02-
22/114703.html . WT/TPR/S/451/Rev.1  
- 66 - 
  semi-processed good s and components or parts, if such inputs have been incorporated or used in 
the production of the exported good.91 Surcharges and countervailing duties are excluded from this 
benefit. From January 2015 to December 2022, an amount equivalent to USD  40.7 mil lion was 
returned to exporters under this system. Services exports are also eligible for the drawback 
scheme.92 
3.82.  There is also a simplified drawback system for non -traditional minor (in value terms) 
exports.93 The drawback rate is 3% of the value of the goo ds exported, and non -traditional exports 
of which at least 50% is made up of imported inputs are eligible for this benefit. Each year, the 
Ministry of Economic Affairs, Development and Tourism issues a decree outlining maximum values 
for the exports, organ ized by tariff classification, that may benefit from drawback, in addition to the 
list of goods excluded from this programme. Under this simplified system, from January  2015 to 
December  2022, an amount equivalent to USD 17.8 million was returned to exporte rs. The 
procedures for obtaining a refund are more straightforward under the simplified system than under 
the general system, as the latter requires full accounting records. Exporters using the general 
drawback system may not use the simplified system for the same product.  
3.2.4.2   Export promotion  
3.83.  Law No. 21.080 of March 2018 provided for the creation of the Directorate -General of Export 
Promotion under the President of the Republic, through the Under -Secretariat for International 
Economic Relations (SUBREI) of the  Ministry of Foreign Affairs. The functions of this Directorate -
General include studying, proposing and implementing all activities relating to Chile's participation 
in international trade, in addition to promoting the development of exports and Chile's im age 
abroad.94 The Directorate -General of Export Promotion is known as ProChile. Under Law No. 21.080, 
ProChile is now a public service attached to SUBREI and its chief is chosen through the system for 
recruiting senior leaders in the public sector. Moreove r, ProChile has its own staff and its resources 
are assigned annually in the Budget Law. The Law grants ProChile the power to hire local staff abroad 
and allow them to act as trade representatives authorized to administer ProChile's resources and 
assets. L aw No. 21.080 also designates ProChile as the agency responsible for issuing certificates of 
origin under the trade agreements to which Chile is party, which require certification by an agency.  
3.84.  ProChile's mission is to contribute to the country's sustainab le development through the 
internationalization of Chilean companies and the promotion of their offer of goods and services. 
ProChile also encourages foreign investment and tourism. It provides exporters with various tools 
and services through its 16 regio nal offices and more than 50 trade offices abroad. Its services 
include a wide range of activities: training on exportation; support for the internationalization of 
small and medium -sized enterprises (SMEs), start -ups and scale -ups; participation in intern ational 
fairs, trade missions and exporter meetings; advertising campaigns and the design of sectoral brands 
(for example, Wines of Chile, Salmón de Chile  and Cinema Chile ); digital trade promotion strategies; 
driving the expansion of innovative Chilean co mpanies with high value added exports; legal advice 
on market access; and trade information, market research and a catalogue of Chile's export s.95 In 
general, ProChile's activities are focused on the agri -food sector, creative industries, the 
manufacturing  industry, services and sea produce.  
3.85.  ProChile's programmes include the Export Promotion Programme, which seeks to help Chilean 
companies with export potential to begin exporting, and to support companies that already export 
to increase and/or diversify the ir export s and destination markets. To that end, the Programme 
offers a range of activities that are focused on three areas: the generation and dissemination of 
foreign trade information; training for the development of export capacity; and work to promote  the 
introduction, penetration and consolidation of markets.  
 
91 Law No. 18.708 of 13 May 1988 and amendments thereto.  
92 In this case, the refund may not exceed the general rate of the customs duties on the value of the 
service exported, based on a determination by the National Customs Service.  
93Law No. 18.480 of 19 December 1985 and amendments thereto.  
94 Article 37 of Law No. 21.080 of 20 March 2018.  
95 ProChile. Viewed at: https://www.prochile.gob.cl/herramientas . WT/TPR/S/451/Rev.1  
- 67 - 
  3.86.  The SME Internationalization Programme provides micro, small and medium -sized enterprises 
that export or have export potential with various training - and trade promotion -focused tools in 
order to  boost their export competencies.  
3.87.  In order to incorporate a gender perspective into foreign trade, ProChile is implementing the 
Mujer Exporta  (Women Exporters) Programme. The Programme seeks to support women -led 
exporting companies or companies with export  potential, so as to increase their presence and 
permanence in international markets. The services include access to strategic information and 
learning processes and support for business development and the creation of trade networks.  
3.88.  ProChile also offers co-financing to support exporting companies (mainly SMEs) through 
competitive funds, in other words, funds that are allocated through a competition. To that end, 
ProChile manages four funds aimed at promoting exports in the forestry and agriculture96, 
manu facturing, services and creative industry sectors. The co -financing is non -refundable and 
ranges between 50% and 65% of the value of the business project, depending on the size of the 
applicant company or on whether it is an individual or partnership (more  than one company)  project. 
Each fund has its own programme and conditions. Table 3.7 indicates the resources allocated by 
ProChile in 2022.  
Table 3.7 ProChile: Funds awarded through competitions in 2022  
2022 
competitions  Business  Sectoral  Total  
Number 
of 
projects  Amount  
(CLP)  Number 
of 
projects  Amount  
(CLP)  Number 
of 
projects  Amount  
(CLP)  
Creative industry  23 204,896,973  9 121,975,000  32 326,871,973  
Manufacturing 
industry  23 165,959,343  0 0 23 165,959,343  
Services  23 186,160,800  8 110,450,000  31 296,610,800  
Forestry and 
agriculture  75 687,541,118  28 1,547,578,000  103 2,235,119,118  
Overall total  144 1,244,558,234  45 1,780,003,000  189 3,024,561,234  
Source:  Information provided by ProChile.  
3.89.  ProChile  works in coordination with other public institutions to promote the 
internationalization of Chilean companies. For example, it transfers resources to the Imagen de Chile  
(Image of Chile) Foundation, whose purpose is to improve Chile's standing abroad thro ugh strategies 
highlighting the attributes that differentiate the country from others, thereby contributing to 
increasing its competitiveness.97 
3.90.  Pursuant to an agreement with the Ministry of Agriculture, each year, the Ministry transfers 
resources provided  under the Budget Law to ProChile, with a view to promoting the increase and 
diversification of non -traditional agricultural and forestry exports.98 These resources are 
implemented through the Agricultural and Forestry Export Promotion Programme.  
3.91.  The Minis try of Finance is responsible for the Programme to Support the Exportation of Chile's 
Global Services, which is supported by a loan granted by the Inter -American Development Bank 
(IDB). Under this programme, funds are channelled to ProChile to support comp anies in the services 
and creative economy sectors that export or have export potential, through the development of 
various promotional activities. Moreover, by means of the National Fund for Regional Development, 
ProChile uses resources from regional gove rnments to, inter alia , carry out training activities and 
trade missions and deliver presentations to potential purchasers, with a view to promoting the 
regional export s. 
3.92.  According to ProChile's data, in 2022, the agency supported a total of 5,295 companie s, of 
which 2,668 were exporting companies (5% more than in 2021). These companies' exports 
 
96 Priority products and subsectors are: wines, pisco, fresh fruit, sea produce, meats, apicultural 
products, dried and dehydrated fruits, organic products, food innovation and agricultural service providers.  
97 The priority markets for implementing the Imagen de Chile  strategy are currently China, Brazil, Spain, 
the United Sta tes and the United Kingdom.  
98 All agricultural and forestry products are considered non -traditional, except cellulose and sawn and 
planed wood.  WT/TPR/S/451/Rev.1  
- 68 - 
  amounted to USD 33,138 million, which represented 78% of non -copper and lithium exports and 
created 513,000 jobs. In 2022, 41% of Chile's exporting companies receiv ed support from ProChile. 
Among these companies, 67% have been exporting for more than three consecutive years and 64% 
increased their exports compared to 2021. 45% of all beneficiary exporting companies are SMEs. 
On average, beneficiary companies export f ive products to six markets (compared to four products 
and two markets in the case of non -beneficiary companies).99 
3.2.5   Export finance, insurance, and guarantees  
3.93.  The Chilean Economic Development Agency (CORFO) is the government agency that supports 
Chilean com panies. Among its multiple programmes, CORFO continues to operate the programme 
covering foreign trade loans (COBEX). This programme guarantees a percentage of the loans used 
to finance the investments or working capital of companies that export or are rel ated to foreign 
trade.100 It also guarantees foreign exchange derivative operations (in order to mitigate foreign 
exchange risk) and investment projects in indigenous areas. CORFO does not provide direct financing 
for companies, but offers a partial guarant ee to an intermediary financial institution in order to obtain 
a loan and serves as backup if the company fails to pay back the loan.101 
3.94.  Applications to make use of COBEX may be made by MSMEs directly or indirectly related to 
foreign trade, exporting compan ies and start -ups. The percentages of the guarantee that COBEX 
offers to companies are determined based on the value of the companies' annual sales (or of their 
projected sales, in the case of start -ups), expressed in inflation -indexed units of account (UF ), as 
indicated in Table 3.8.102 Moreover, a maximum amount of coverage per company is established 
based on the category of the company concerned. The maximum amounts have remained unchanged 
during the period under review, except for the amount allocated to  large exporting companies, which 
has increased from 23,000 UF (USD 1,039,265) to 35,000 UF (USD 1,581,490).  
Table 3.8 COBEX: beneficiary companies, percentages and maximum amounts 
guaranteed  
Company category  Annual sales in UFa 
(excluding VAT)  Percentage 
guaranteed  Maximum amount  
per company  
(UF) 
Companies directly or indirectly related to trade  
Micro enterprise  Up to 2,400  60% 5,000  
Small enterprise  2,401 - 25,000  60% 7,000  
Medium -sized enterprise  25,001 - 100,000  60% 9,000  
Exporting companies  Up to 600,000  40%  35,000  
a As of 9 May 2023, the UF  was equivalent to CLP 35,943.2 and the value of the US dollar was 
USD 1=CLP 795.46.  
Source:  CORFO. Viewed at: https://www.corfo.cl/sites/cpp/convocatorias/cobex . 
3.95.  Table 3.9 contains information on the number of guarantee operations, the amount of the 
loans guaranteed and the amount of the coverage under COBEX for the period under review.  
 
99 Information provided by ProChile.  
100 The guarantees may be in Chilean pesos, euros, dollars or inflation -indexe d units of account (UF). 
101 CORFO online information. Viewed at: https://www.corfo.cl/sites/cpp/programasyconvocatorias . 
102 Maximum sales limits are not applied to investment projects in indigenous areas.  WT/TPR/S/451/Rev.1  
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  Table 3.9 CORFO foreign trade guarantee operations (COBEX), 2015 -22 
(CLP million)  
Year  Number of operations  Loan amount  Coverage amount  
2015 2,873  165,829  .. 
2016 3,282  161,514  .. 
2017 3,810  159,121  67,002  
2018 4,596  170,576  73,796  
2019 3,534  168,618  73,291  
2020 2,384  157,953  67,709  
2021 3,176  206,814  90,654  
2022 4,150  320,496  138,080  
.. Not available.  
Source:  CORFO, https://www.corfo.cl/sites/cpp/movil/informespublicos , section: " Gerencia de Inversión y 
Financiamiento " ("Management of Investment and Financing"), subsection: " Informes de Garantía 
CORFO"  ("CORFO Guarantee Reports").  
3.96.  CORFO also administers the Market Network Programme, the objective of which is to support 
groups of companies in acquiring the skills and knowledge needed to access international markets, 
whether directly or indirectly. The programme operates through competitions, which may be entered 
by companies developing and marketing services with export potential. Candidates must have 
annual sales of between 2,400 UF (USD  108,445) and 100,000 UF (USD 4,518,543), lack regular 
access to export markets and conduct the business export capability assessment provided by 
CORFO. The support consists of financing and involves two stages: (i) the assessment stage - 
financing of up t o CLP 4 million per project; and (ii) the development stage - financing of up to 90% 
of the total cost of the stage, with a maximum amount of CLP 40 million per project. The beneficiaries 
must co -finance at least 10% of the total cost of the project's deve lopment stage.103 
3.97.  Exporting companies may also access the Small Business Guarantee Fund (FOGAPE), 
administered by BancoEstado, which seeks to guarantee a percentage of the loan capital, leasing 
operations and other types of financing granted by public or pr ivate financial institutions to micro 
and small enterprises and exporters, which lack the guarantees required to access the formal 
financial system.104 In recent years, medium -sized and, temporarily, large enterprises were able to 
access the Fund105 (Section  3.3.1.2).  
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.98.  Chile continues to pursue various incentive programmes, with objectives such as promoting 
investment and the economy in remote areas of the country; supporting MSMEs; boosting 
competitiveness and production diversification; and fostering innovation and new technologies. 
Incentives may include tax concessions, financing, technical training or business management 
support.  
3.99.  During the period under review, Chile notified the followin g programmes to the WTO 
Committee on Subsidies and Countervailing Measures: the tax credit for investment in certain 
provinces and regions; tax exemptions in free trade zones; the Fund for the Promotion and 
Development of Remote Areas; and financing to pro mote the development of artisanal fisheries and 
small -scale aquaculture. These programmes have been extended but have not changed substantially 
since the last review.106 
 
103 CORFO online information. Viewed at: https://www.corfo.cl/sites/cpp/inf/red -mercados . 
104 FOGAPE is governe d by Decree Law No. 3.472 of 2 September 1980 and the amendments thereto, 
Ministry of Finance, and by the Regulations of the Financial Market Commission.  
105 Law No. 21.207 of 20 January 2020.  
106 WTO documents G/SCM/N/284/CHL of 4 April 2016; G/SCM/N/315/CHL of 10 October 2017; 
G/SCM/N/343/CHL of 12 July 2019; G/SCM/N/343/CHL/Suppl. 1 of 21 August 2020; G/SCM/N/372/CHL of 
8 October 2021; and G/SCM/N/401/CHL, of 30 June 2023.  WT/TPR/S/451/Rev.1  
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  3.3.1.1   Support for remote areas  
3.100.   The Tax Credit for Investment in the Arica and Parinacota Prov inces is intended to attract 
investment to these provinces and stimulate their economies.107 The beneficiaries of this programme 
receive an income tax credit for investments of more than 500 UTM (about USD  39,228)108 made in 
these provinces. For investment i n Arica, the tax credit is 30 %, save for tourism projects, which 
receive a credit of 40 %. In Parinacota, investors are entitled to a 40 % credit for any type of project. 
Since the previous review, the deadline to qualify for this programme has been extended  to 
31 December  2035 (previously it was the end of 2025) and the time limit for recovery of the credit 
has been extended to 2055 (previously 2045).  
3.101.   The Tax Credit for Investment programme is also being pursued in the Aysén and Magallanes 
Regions and in the  Palena Province of the Los Lagos Region.109 Under this programme, companies 
making investments of more than 500 UTM (around USD  39,228) in these remote regions are 
entitled to an income tax credit. The percentage of the credit varies between 10 % and 32 %, 
depending on the amount invested, but may not exceed 80,000 UTM (USD  6,276,488). The deadline 
to qualify for this benefit is 31  December  2035 (in the previous review it was 31  December  2025) 
and the credit can be claimed until 2055.  
3.102.   The free trade zones loc ated in the cities of Iquique and Punta Arenas, which have been 
operating since the late 1970s, enjoy tax and customs benefits.110 Service companies and user 
companies established in these zones are exempt from income tax (on profits), VAT (on sales of 
goods and services within the zones) and import duties and other taxes. In addition, as of 2020, 
owners of companies in free trade zone that take advantage of the tax transparency regime for 
MSMEs receive a credit equivalent to 50 % of the income tax that would  have been payable by their 
company (and that it does not pay because it is exempt), which they can defray against their 
personal taxes.111 
3.103.   Firms engaged in all types of activities, with the exception of mining, fishing and financial 
services firms, may tak e advantage of the free trade zone regime. Sales of goods from a free trade 
zone to another free trade zone or abroad are exempt from VAT. Persons selling domestic products 
to firms in the free trade zones can obtain reimbursement of customs duties and tax es paid on 
imports of inputs (such as raw materials, semi -processed goods, parts or components) have been 
directly incorporated or used in those products, where the inputs have a c.i.f. value of 10 % or more 
of the sales value of the product. However, the s ale of goods from a free trade zone to Chilean 
customs territory is considered an import and is subject to the payment of import duties, other 
import taxes and VAT.  
3.104.   In addition to the Iquique and Punta Arenas free trade zones, extended free trade zones 
have been created in the regions adjacent to the primary free trade zones.112 Residents of the 
extended free trade zones can import foreign goods from the primary free trade zones of Iquique 
and Punta Arenas without paying duties and other import taxes. They o nly have to pay an excise 
duty of 0.46 % (rate effective from 1  April 2019) on the c.i.f. value of the goods. In general, sales 
within the extended free trade zone are exempt from VAT. However, in the case of goods coming 
from a primary free trade zone, the ir sale is subject to VAT.  
3.105.   Arica Province has an industrial free trade zone. Manufacturing firms established in that zone 
and that perform irreversible processing of foreign raw materials, parts and components may, when 
selling the final product, be exempt ed from customs duties and VAT on the raw materials, parts and 
components imported and incorporated into the production of that product. These companies also 
 
107 Law No. 19.420 of 23 October 1995 and its amendments. The latest amendment was made by 
Law No. 21.210 of 24 February 2020.  
108 As at 31 May 2023, the Unidad Tributaria Mensual  (UTM), or Monthly Tax Unit, was equivalent to 
CLP 63,074 and the value of the US dollar was USD 1=CLP 803.94. Source: Central Bank.  
109 Law No. 19.606 of 14 April 1999 (the Ley Austral ) and its amendments. The latest amendment was 
by means of Law No. 21.210 of 24 February 2020.  
110 Decree No. 1.055 of 25 June 1975, Ministry of Finance.  
111 Decree No. 341 of 8 June 1977, Ministry of Finance, and Decree with the Force of Law No. 2 of 
10 August 2001, Ministry of Finance. Latest amendments made by Laws No. 20.780 of 29  September  2014, 
No. 20.997 of 13  March 2017 and No. 21.210 of 24 February 2020.  
112 In the north, the extended free trade zones cover the Arica and Parinacota Region (including 
Alto Hospicio) and in the south, the Aysén and Magallanes Region and Palena Province.  WT/TPR/S/451/Rev.1  
- 71 - 
  benefit from income tax exemption and VAT recovery for services or supplies used in the production  
of exported products.113 
3.106.   In addition, there is the Tocopilla industrial free trade zone, created in 2002 for a 25 -year 
term.114 This zone is intended for the production of inputs, parts and components and the repair of 
capital goods for the mining industry established in the commune of Tocopilla (Region of 
Antofagasta ). The benefits enjoyed by industrial companies established in this zone include 
exemptions from income tax, VAT, customs duties and other import taxes.  
3.107.   The Fund for the Promotion and Developmen t of Remote Areas aims to support 
disadvantaged regions in the extreme north and south of Chile115, offering non -refundable financing 
to small and medium -sized investors116 interested in investing in capital goods in these regions.117 
Funding may only be gran ted to SMEs producing goods and services in the construction, machinery, 
equipment, fine animal feed and small -scale artisanal fishing sectors (large -scale mining and 
industrial fishing are excluded). The annual amount of the investment or reinvestment can not exceed 
50,000  UF (about USD  2,259,275)118 and, during the period 2012 -35, the subsidy granted may not 
exceed 20 % of the value of the investment. The Fund is approved annually through the Budget Law 
and the resources are administered by CORFO through bid ding processes.119 In 2022, the budget 
approved for this programme was CLP  3,282  million, of which CLP  2,762.9  million was disbursed.120 
For 2023, the allocated budget was CLP  3,488.8  million (about USD  4.4 million).  
3.108.   There is also an incentive for hiring labour in remote areas.121 Employers that apply for this 
benefit receive a payment equivalent to 17 % of the taxable remuneration of employees resident and 
working permanently in these areas. The subsidy may not exceed CLP  182,000 (adjusted annually) 
per employee.  
3.3.1.2   Business support  
3.109.   In addition to the incentives mentioned above, Chile has numerous business support 
programmes, mainly for MSMEs, most of which are administered by CORFO. CORFO is a 
decentralized public service, the purpose of which is to advance the economic development and 
diversification of the country by promoting investment, innovation, entr epreneurship, human capital 
and technological capabilities. It implements a wide range of programmes (around 50) through its 
different departments, aimed at supporting companies, regions or economic sectors. In general, the 
programmes offer financing or gu arantees to start or expand a company or business activity, 
innovate, improve management, improve quality, develop supplier networks, stimulate business 
partnerships and encourage the creation and adoption of new technologies.122 In many cases, 
resources ar e awarded through calls for tenders, which are launched regularly. Not all programmes 
are continuously available. Table 3.10 shows the amounts disbursed for the programmes of the 
different CORFO departments.  
 
113 Law No.  19.420 of 23 October 1995 and Decree with the Force of Law No.  1 of 11  September 2001, 
Ministry of Finance. See also Cavada Herrera , J. P., Comparación de regímenes tributarios de Zonas Francas: 
Chile y Perú , Library of the National Congress of Chile, Parliamentary Technical Assistance, July 2022. Viewed 
at: 
https://obtienearchivo.bcn.cl/obtienearchivo?id=repositorio/10221/33367/2/Comparacion_de_Zonas_Francas_
JPC_ED_PA.pdf . 
114 Law No.  19.709 of 31  January  2001 and Law No.  20.333 of 4  February  2009.  
115 Arica, Parinacota, Tarapacá, Aysén, and Magallanes Regions, and Chiloé and Palena Provinces of 
Los Lagos  Region.  
116 Investors whose annual net sales do not exceed 40,000 UTM.  
117 Law No.  3.529 of 6 December 1980 and its amendments and Decree with the Force of Law No.  15 of 
20 April 1981, Ministry of Finance.  
118 As at 9 May 2023, 1 UF was equivalent to CLP 35,943.2 and the value of the US dollar was 
USD 1=CLP 795.46.  
119 CORFO. Viewed at: https://www.corfo.cl/sites/cpp/movil/dfl15 . 
120 Information provided by CORFO.  
121 Law No. 19.853 of 11 February 2003 and its amendments.  
122 CORFO programmes can be found at: https://www.corfo.cl/sites/cpp/area/movil/redes -y-territorios . WT/TPR/S/451/Rev.1  
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  Table 3.10 Amounts disbursed by CORFO departments, 2022  
CORFO department  Total amount disbursed  
(CLP  million)  Percentage distribution  
Networks and territories  63,902  35% 
Entrepreneurship  22,150  12% 
Startups  6,454  4% 
Technological capabilities  17,440  10% 
Innovation  29,392  16% 
Investment and financinga 32,769  18% 
Total  172,106  100%  
a Corresponds to CORFO  programme guarantees paid to financial intermediaries as contingent 
subsidies.  
Source:  Information provided by CORFO. See also: https://www.corfo.cl/sites/cpp/programasyconvocatorias . 
3.110.   In some cases, CORFO  is involved in the administration of tax incentive programmes. One 
example is the research and development (R&D) tax benefit programme, which grants a tax credit 
against first category income tax (on profits), equivalent to 35 % of the total payments relat ed to 
R&D activities under CORFO -certified contracts.123 In addition, the taxpayer receives an income tax 
rebate on the remaining 65 % of the amount invested, which can be deducted as a necessary 
expense. The maximum amount of the tax credit to which the taxpayer is entitled in each tax year 
is 15,000 UTM (about USD  1,176,841). Companies may carry out their own R&D activities or 
subcontr act them, including to R&D centres registered with CORFO. The amount of R&D investment 
must exceed 100 UTM (about USD  7,845.6) and companies of all sizes and from all sectors are 
eligible for this benefit.  
3.111.   Another CORFO programme is the Integrated Promotio n Initiatives (IFI) for technological 
investment.124 This programme offers support in order to bring to fruition or expand technological 
investments for an amount equal to or greater than USD  2 million, which have an impact on relevant 
productive sectors or  geographic areas. Eligible investments are in the areas of information 
technology and telecommunications, biotechnology, new materials, electronics and process 
engineering, and projects that apply new production techniques to process and add value to natu ral 
resources. The beneficiary company obtains a co -financing of 30 % of the resources invested in the 
first two years of project implementation, up to a maximum of USD  5 million. The incentive applies 
to investment expenses in technological fixed assets, h uman capital and supplier development 
activities.  
3.112.   While CORFO programmes are generally open to all types of enterprises, some are 
specifically targeted at MSMEs. This is true for the CORFO MSME Credit, aimed at improving the 
supply of financing for MSMEs t hrough non -bank financial intermediaries (NBFIs). Through the 
programme, CORFO offers NBFIs credit to finance MSMEs. Companies whose annual revenues from 
sales, services and other activities do not exceed 100,000 UF (about USD  4,518,543) are eligible. 
Financing is provided directly by NBFIs (for example, savings and credit cooperatives, compensation 
funds, agricultural, rural and fishing cooperatives, etc.) through credit and leasing operations (up to 
10 years) and factoring operations. NBFIs evaluate credi ts in accordance with their commercial and 
credit risk policies and report to CORFO on the operations financed. On the basis of this information, 
CORFO assesses the eligibility of the operations, in accordance with the rules of the programme.125 
3.113.   CORFO also runs a Technology Dissemination Programme which seeks to improve knowledge 
of and access to technologies of groups of SMEs, through dissemination and technology transfer 
activities that boost the enterprises' competitiveness. The Digital Assistance Network  – 
Strengthening SME Programme seeks to help these companies increase their income and 
productivity through the adoption and use of digital technologies in their business processes 
(production, management or commercial). The support consists of co -financin g of up to 80 % of 
projects that deliver services in these fields, with a maximum total subsidy of CLP  200 million.  
 
123 Law No. 20.241 of 19 January 2008 and its amendments.  
124 CORFO Resolution No. 56 o f 28 July 2020, available at https://bcn.cl/3czw4 . 
125 CORFO Resolution No. 37 of 2 June 2020, Regulation of the Credit Programme for Non -Banking 
Financial Intermediaries - CORFO MSME Cred it (last amended in 2022).  WT/TPR/S/451/Rev.1  
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  3.114.   Meanwhile, the Guarantee Fund for Small and Medium -Sized Enterprises (FOGAPE), a state 
fund that has been in operation since 1980, supports a ccess to financing for SMEs.126 FOGAPE 
guarantees a percentage of loans, leasing operations and other types of financing granted by public 
and private financial institutions to SMEs that lack sufficient collateral or equity backing to apply for 
credit in th e formal financial system. The total amount of financing guaranteed and the percentage 
covered by the Fund depend on the firms' level of annual sales, expressed in UF, as well as on the 
different FOGAPE programmes, as shown in Table  3.11. 
3.115.   During the period  under review, the FOGAPE regime was amended to, inter alia , increase 
the Fund's capital, adjust the amount of annual sales required for enterprises to be eligible, alter the 
percentages and amounts of guaranteed financing, and to include medium -sized ente rprises, which 
were previously ineligible. Special time -limited programmes were also introduced to address the 
economic effects of the COVID -19 pandemic. According to its own data, in 2022 (the last full year 
for which data are available) FOGAPE guaranteed  103,453 financing operations for a total value of 
57.17  million  UF and a total amount in guarantees of 40.41  million  UF. The guarantees corresponded 
mainly to loans in the services sector, including commerce, construction and transport and 
communications (75.5 %), followed by agriculture and fisheries (18.8 %) and the industrial sector 
(5.7%).127 
Table 3.11 FOGAPE programmes: percentages and maximum amounts guaranteed 
according to the value of companies' sales, n umber of operations and amounts financed  
Programme  Annual sales in UF  
(excluding VAT)  Percentage 
of coverage  Maximum 
amount of 
funding  
per company  
(UF) Number of 
operations 
granted  Amount of 
funding  
(million UF)  
Traditional 
FOGAPEa Up to 25,000  80% 6,250  105,573  45.31  
25,001 - 100,000  50% 25,000  12,812  21.39  
   118,385  66.71  
FOGAPE 
COVIDb Up to 25,000  85% 6,250  253,939  104.65  
25,001 - 100,000  80% 25,000  21,088  83.51  
100,001 - 600,000  70% 150,000  7,892  107.60  
600,001 - 1,000,000  60% 250,000  812 28.86  
   283,761  324.63  
FOGAPE 
REACTIVAc  Up to 25,000  85% 6,250  203,492  89.06  
25,001 - 100,000  80% 25,000  12,560  47.12  
100,001 - 600,000  70% 150,000  5,602  71.48  
600,001 - 1,000,000  60% 250,000  721 23.33  
   222,375  230.98  
FOGAPE  
CHILE -APOYAd Up to 2,400  95% 4,000  64,104  11.91  
2,401 - 25,000  90% 6,250  31,423  28.01  
25,001 - 100,000  85% 25,000  8,569  18.40  
   104,096  58.31  
a Operates on a permanent basis. The data covers the period from 1  January  2022 to 6 July 2023.  
b Effective for credits from 28  April 2020 to 30  April 2021.  
c Effective for credits from 5  February  2021 to 31  December  2021.  
d Effective for credits from 26  December  2022 to 31  December  2023. The data is valid up to 
6 July 2023.  
Source:  Information provided by FOGAPE.  
3.116.   There is also a General Investment Guarantee Fund (FOGAIN), which is open to companies 
with annual sales of up to 100,000 UF (some USD  4,518,543). Through this Fund, CORFO facilitates 
access to financing for companies requiring investment and working capital, by providing risk 
coverage to financial institutions that grant loans to such companies. The financial assessment 
depends on the credit and risk policies of the financial institutions. Maximum guarantee amounts are 
applied d epending on the size of the company and the term of the operations.128 
3.117.   In 2023, the Special Guarantees Fund (FOGAES) was established to develop specific 
guarantee programmes with flexibilities in terms of beneficiaries, conditions, sectors and 
participating  financial institutions. Two programmes have been created under the aegis of FOGAES: 
 
126 Legislative Decree No. 3.472 of 2 September 1980 and its amendments, Ministry of Finance. 
Law No. 21.207 of 20 January 2020 allowed medium -sized enterprises to apply for FOGAPE assistance.  
127 Information provided by FOGAPE.  
128 Online information from CORFO. Viewed at: https://www.corfo.cl/sites/cpp/convocatorias/fogain . WT/TPR/S/451/Rev.1  
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  one to support construction guarantees for large companies affected by the pandemic; and the other 
to support access to financing for housing (up to 90 % of the purchase or  transaction value). Both 
programmes are valid for one year, until April  2024.  
3.118.   In addition, CORFO has several programmes to support specific activities, such as artisanal 
fishing, renewable energy and forestry and agricultural activities. The agricultural support 
programmes that Chile has notified to the WTO  Secretariat are described in Section 4.1.  
3.3.2   Standards and other technical requirements  
3.3.2.1   Legal and institutional framework  
3.119.   During the period under review, there were no major changes to Chile's legal and 
institutional framework for the preparation and application of technical regulations, standards and 
conformity assessment procedures. As stated in the previous report, the development of technical 
regulations and standards in Chile is based on the principl es of non -discrimination and transparency 
and on the use of international standards. Furthermore, pursuant to the Transparency Law in force 
since 2008, Chile is required to publish through the websites of its regulatory agencies all technical 
regulations a nd conformity assessment procedures in force. Chile also has a Technical Regulations 
Gateway, which is intended to centralize this information by making it easier for potential new 
exporters to find information on access to its market. During the period un der review, Chile prepared 
and notified a large number of technical regulations.  
3.120.   Chile's legislation on technical regulations includes: the WTO Agreement on Technical 
Barriers to Trade (TBT Agreement), which came into force in Chile in May  1995 pursuant to  Supreme 
Decree No.  16 of 1995 issued by the Ministry of Foreign Affairs129; Law No.  19.912 of 2003130 
creating a mechanism for compliance with the notification commitments under the TBT Agreement; 
Decree No.  77 of 2004 of the Ministry of the Economy131 laying down the requirements to be met by 
competent institutions when preparing, adopting and applying technical regulations and conformity 
assessment procedures; Decree No.  308 of 2008132 amending Decree No.  77; and the series of 
regional trade agreements that Chile has signed, most of which contain a chapter on technical 
regulations, standards and conformity assessment procedures.  
3.121.   Decree No.  77 of the Ministry of Economy, entitled " Regulations for the Implementation of 
Title I of Law No.  19.912 and Requirements  for the Preparation, Adoption and Application of 
Technical Regulations and Conformity Assessment Procedures ", contains the primary  regulations for 
the preparation of technical regulations and conformity assessment procedures for all government 
agencies. T he Decree specifies that the Regulations shall apply to the preparation, adoption and 
application of technical regulations and conformity assessment procedures, consistent with the 
provisions of the TBT Agreement.133 The Regulations apply on a suppletive ba sis in cases where 
other laws establish special procedures.  
3.122.   Decree No.  316 of 7  July 2023 approves the Regulations for Article 28(11) of Law No.  21.080 
of 7 March  2022.134 This Decree concerns the notification of technical regulations and conformity 
assessm ent procedures to the WTO and other resulting obligations. The main objective of the Decree 
is to establish the basis for the preparation of technical regulations and conformity assessment 
 
129 Supreme Decree No. 16 of 17 May 1995, Ministry of Foreign A ffairs.  
130 Law No. 19.912 of 4 November 2003.  
131 Decree No. 77 of 14 June 2004, Ministry of the Economy, Development and Reconstruction.  
132 Decree No. 308 of 15 February 2010, Ministry of the Economy, Development and Reconstruction.  
133 According to the Regulation, the term "adoption" is used to refer to the point at which technical 
regulations and/or conformity assessment procedures have completed their legal process and are published in 
the Official Journal. The term "application" is used to refer to th e moment from which compliance with a 
technical regulation or conformity assessment procedure becomes enforceable. Decree No. 77 of 14 June 2004, 
Ministry of Economy, Development and Reconstruction.  
134 Article 28(11) of Law No. 21.080 states that it is the function of the Under -Secretariat for 
International Economic Relations of the Ministry of Foreign Affairs to "evaluate, propose and execute the 
appropriate measures for the implementation and administration of international agreements in the field of 
international economic relations, in particular the notification of technical regulations and conformity 
assessment procedures to the World Trade Organization and to fulfil the other obligations deriving therefrom. 
To this end, in coordination with other compet ent state administration bodies, it shall form, coordinate and 
chair the working groups and teams required for such administration".  WT/TPR/S/451/Rev.1  
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  procedures in all government agencies. The Decree specifies that th e Regulations shall apply to the 
preparation, adoption and application of technical regulations and conformity assessment 
procedures, consistent with the provisions of the TBT Agreement. The Regulations apply on a 
suppletive basis in cases where other laws  establish special procedures.  
3.123.   The Regulatory Affairs Division of the Under -Secretariat for International Economic Relations 
(SUBREI), within the Ministry of Foreign Affairs, is responsible for administering the TBT  Agreement, 
acting as the enquiry point f or matters relating to technical regulations and  conformity assessment 
procedures. It also serves as the official point of contact on TBT matters, notifies the WTO and chairs 
the National Commission on Technical Barriers to Trade, which aims to implement t he obligations of 
the TBT Agreement and coordinate Chile's position in trade negotiations in this area among the 
participating entities.  
3.124.   The National Commission on Technical Barriers to Trade (CNTOC), constituted ex officio  and 
originally chaired by the Mi nistry of Economy, through the Department of Foreign Trade (DECOEX), 
is currently chaired by SUBREI, through the Regulatory Affairs Division.135 The CNTOC is composed 
of public institutions related to the drafting, adoption and implementation of standards, technical 
regulations and conformity assessment procedures, including the Under -Secretariat of Transport, 
the Under -Secretariat of Telecommunications, the General Directorate of Public Works (MOP), the 
Ministry of Housing and Urban Development (MINVU), the  Ministry of the Environment (MMA), the 
Agriculture and Livestock Service (SAG), the Electricity and Fuels Supervisory Authority (SEC), the 
National Fisheries Service (SERNAPESCA), the Ministry of Health (MINSAL), the Public Health 
Institute (ISP), the Nat ional Consumer Service (SERNAC), the National Standardization Institute 
(INN), the Sanitary Services Supervisory Authority (SISS), the Ministry of Mining, the 
Under -Secretariat of Fisheries (SUBPESCA), the Ministry of Defence, the Ministry of Energy, the 
Office of Agrarian Studies and Policies (ODEPA), the Office of the Secretary -General of the Office of 
the President (SEGPRES), the Chilean Food Quality and Safety Agency (ACHIPIA) and the National 
Energy Commission (CNE).  
3.125.   The purpose of the CNTOC is to ensu re compliance with obligations under the 
TBT Agreement, coordinate Chile's position in the relevant trade negotiations and promote 
standardization as a tool in support of Chile's technological modernization process, among other 
tasks. It meets three times a year, prior to the quarterly meeting of the TBT Committee in Geneva.136 
3.126.   Chile is a member of various international standardization, accreditation and metrology 
bodies. For standardization: the International Organization for Standardization (ISO), the 
Pan American Standards Commission (COPANT) and the Codex Alimentarius; Chile participates as a 
non-voting associate member of the MERCOSUR Standardization Association (AMN). For 
accreditation: the International Accreditation Forum (IAF), the International Labo ratory 
Accreditation Cooperation (ILAC) and the Inter -American Accreditation Cooperation (IAAC). For 
metrology: the International Bureau of Weights and Measures (BIPM) and the Inter -American 
Metrology System (SIM).  
3.3.2.2   Technical regulations  
3.127.   The preparation, ad option and application of technical regulations shall be the responsibility 
of the respective ministries or agencies that are so authorized.137 Technical regulations should be 
based, as far as possible, on national or international standards, should not cre ate unnecessary 
obstacles to trade, and should be based on performance criteria, that is, they should be defined in 
 
135 SUBREI, Regulatory Affairs Division/Coordination and Participation on Boards and Committees, 
National Commission on Techn ical Barriers to Trade. Viewed at: https://www.subrei.gob.cl/ejes -de-
trabajo/aspectos -regulatorios -del-comercio/mesas -y-comites . 
136 SUBREI, Regulatory Affairs Division/Coordination and Participation on Boards and Committees, 
National Commission on Technical Barriers to Trade. Viewed at: https://www.subrei.gob.cl/ejes -de-
trabajo/aspectos -regulatorios -del-comercio/mesas -y-comites . 
137 The Decree defines a "technical regulation" as "a provision whereby the competent authority, 
through an administrative act, lays down product characteristics or their related processes and production 
methods, including the applicable administrative provisions, with which compliance is mandatory". It also 
defines "conformity assessment procedure" as "any p rocedure used, directly or indirectly, to determine that 
relevant requirements in technical regulations are fulfilled [and] includes, inter alia , procedures for sampling; 
testing and inspection; evaluation, verification and assurance of conformity; registr ation, accreditation and 
approval as well as their combinations".  WT/TPR/S/451/Rev.1  
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  terms of the products' performance rather than design or descriptive characteristics. Technical 
regulations are issued at central government  level in the form of laws, decrees or resolutions.  
3.128.   Technical regulations are prepared, adopted and applied such that imported products are 
accorded treatment no less favourable than that accorded to like products of national origin and to 
like products or iginating in any other country. Likewise, conformity assessment procedures are 
prepared, adopted, and applied so as to grant access for suppliers of like products originating in 
another country under conditions no less favourable than those accorded to sup pliers of like products 
of national origin or originating in any other country, in a comparable situation.  
3.129.   The preparation, adoption and application of technical regulations and/or conformity 
assessment procedures shall follow the following steps: (a) the Ministry or agency with regulatory 
authority shall publish, by means of a notice in the national media or on its website, the proposed 
technical regulation or conformity assessment procedure; (b) the notice shall include, at a minimum, 
an extract from the draft technical regulation or conformity assessment procedure and a link to its 
full text; (c) a report shall be included explaining the objective of the planned measure and the 
existence of applicable international standards on the subject; (d) the notice  shall be published far 
enough in advance of the date of adoption of the measure to allow written comments to be made 
for at least 60 days, which must be analysed and taken into account; and (e) the technical 
regulations and/or conformity assessment proced ures shall provide for a reasonable period of not 
less than six months between the date of their adoption and their application. The above steps may 
be omitted in cases where urgent problems of safety, health, environmental protection or national 
security arise or threaten to arise.  
3.130.   The Agriculture and Livestock Service (SAG) is one of the entities responsible for providing 
technical support in the preparation of certain technical regulations, such as those governing organic 
products, veterinary medicines, animal feed, animal welfare and meat grading. SAG is directly 
responsible for the regulation of products such as pesticides, fertilizers and seeds.  
3.131.   Decree No.  77 of 2004 and its amendment (Decree No.  308 of 2010) provide that the 
Ministry of Economy shall notify draft regulations and/or conformity assessment procedures to the 
WTO and receive comments from other WTO Members. Such drafts may only be issued at least 
60 days after their notification. Technical regulations and/or conformity assessment procedures  shall 
include: (a)  identification of the product, including its classification according to the Harmonized 
Commodity Description and Coding System (HS) and the objective of the measure; (b)  the 
specifications and characteristics of the product; (c)  confor mity assessment methods; (d)  the data 
and other information to be displayed on the products or else on their containers or packaging and 
their marking requirements; (e)  the degree of consistency with international standards and 
guidelines used as a basis i n their preparation; (f)  mention of the institution or institutions 
responsible for enforcing the regulations; and (g)  any other information necessary for the proper 
understanding of the regulations or procedure including their scope.  
3.132.   After approval, techn ical regulations and conformity assessment procedures are published 
in the Official Journal and on the website of the respective regulatory agencies, since, according to 
the Transparency Law, each regulatory agency must publish its technical regulations an d conformity 
assessment procedures in force. In general, there is no single procedure for the review of technical 
regulations, as this depends on each agency and its needs. Nevertheless, it is customary practice 
for the competent agencies to review technic al regulations and conformity assessment procedures 
regularly to amend or repeal them, as appropriate. For example, technical regulations for electrical 
and fuel products are reviewed by the Electricity and Fuels Supervisory Authority (SEC) every year 
and, according to information provided by the authorities, at least 15  regulations are updated or 
produced every year. The procedure for modifying technical regulations is the same as for their 
preparation. However, in the case of the SAG, there is no explicit  and systematic procedure for ex 
post review; instead, there are review and adjustment processes triggered upon request or detection 
of application difficulties, save where the relevant legal body has established a specific period. All 
domestic and importe d goods must comply with the corresponding technical regulations.  
3.133.   Between January  2015 and early March  2023, Chile submitted 535 notifications to the WTO 
Committee on Technical Barriers to Trade, of which 328  were new notifications and the remainder WT/TPR/S/451/Rev.1  
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  were a ddenda or corrigenda.138 Of the 328  notifications of new measures, 183 were related to 
technical regulations, 4 to urgent technical regulations, 1 to local government technical regulations 
and 136 to conformity assessment procedures. Five of these notificat ions involved both technical 
regulations and conformity assessment procedures. The objective of the majority of the technical 
regulations notified (101) was protection of human health or safety , and they mainly concerned 
foodstuffs, household appliances, b uilding materials, vehicles, toys, pharmaceutical products and 
cosmetic s, among others. The remaining objectives include quality requirements (47); 
environmental protection (46); labelling (27); prevention of deceptive practices (16); protection of 
plant o r animal life or health (10); and others (9). The government authorities involved in preparing 
the measures notified included the Ministries of Health, Economic Affairs, Housing and Urban 
Planning, Transport and Telecommunications, and the Environment.  
3.134.   During the period under review, Members raised six new trade concerns regarding Chilean 
technical regulations in the TBT Committee, relating to the efficiency analysis and/or test protocol 
for electrical products (ID 704) (Republic of Korea); amendment to the  general regulation of the 
compulsory system for livestock classification and the grading, marking and marketing of 
Beef (ID 693) (Brazil); technical specifications for the design of energy efficiency labels for washing 
machines (ID 654) (Republic of Korea ); regulations on the classification, labelling and notification of 
chemical substances and mixtures (ID 570) (Mexico); public consultation for draft legislation setting 
out rules on the preparation, description and labelling of milk products deriving from  milk (ID 566) 
(European Union; New Zealand; Russian Federation; and United  States); and proposed amendment 
to the Food Health Regulations, Supreme Decree No.  977/96 (ID 370) (Argentina; Australia; Brazil; 
Canada; Colombia; Costa Rica; European Union; Guat emala; Mexico; Peru; Switzerland; and 
United  States).139 
3.3.2.3   Standards  
3.135.   Standardization is the responsibility of the National Standardization Institute (INN), a 
non-profit, private law foundation, set up by the Economic Development Agency (CORFO) as a 
technical body in matters of quality infrastructure. The INN is responsible for developing and 
disseminating the use of voluntary Chilean technical standards (NCh); coordinating the National 
Metrology Network; and accrediting conformity assessment bodies. It is also tasked with helping to 
ascertain the need for new standards. Its mission is to be the national reference point in matters of 
quality, leading a process that results in the adoption of best practices in this field.140 
3.136.   The INN develops technical st andards for the different productive sectors through various 
funding schemes, and provides an online service to access technical documents, both NCh and 
international standards. It also carries out accreditation work for system certification bodies, produc t 
certification bodies, personal certification bodies, testing laboratories, calibration laboratories, 
clinical laboratories, inspection bodies, verification bodies and proficiency testing providers. The INN 
administers and coordinates the National Metrolo gy Network, composed of various public and private 
laboratories in the international fields of physics and chemistry.  
3.137.   The INN represents Chile in the International Organization for Standardization (ISO), the 
Pan American Standards Commission (COPANT) and i s an invited member of the MERCOSUR 
Standardization Association. In the field of accreditation, the Institute is a founding member of the 
Inter-American Accreditation Cooperation (IAAC) and, since 2010, is a signatory member of the 
IAAC's Multilateral Reco gnition Agreements (MLA/MRA) for the accreditation of: certification bodies 
for quality management systems (ISO  9001), certification bodies for environmental management 
systems (ISO  14001), testing laboratories, clinical laboratories and calibration labora tories. Since 
2016, the INN also has MLAs for the accreditation of product certification bodies and inspection 
bodies. The INN is also a full member of the International Laboratory Accreditation Cooperation 
(ILAC) and, since 2010, is a signatory to the ILA C Mutual Recognition Arrangements (MRA), covering 
the accreditation of testing laboratories, clinical laboratories and calibration laboratories and, since 
2016, the accreditation of inspection bodies. The INN is similarly a full member of the International  
 
138 WTO SPS and TBT Platform. Viewed at: 
https://eping.wto.org/en/Search/Index?domainIds=1&countryIds=C152&distributionDateFrom=2015 -01-
&distributionDateTo=2023 -03-02&notificationTypes=Regular%20notification . 
139 WTO SPS and TBT Platf orm. Viewed at: 
https://eping.wto.org/es/Search/TradeConcerns?domainIds=1&memberResponding=C152 . 
140 Information provided by INN . Viewed at: https://www.inn.cl/quienes -somos . WT/TPR/S/451/Rev.1  
- 78 - 
  Accreditation Forum (IAF) and a signatory member of the IAF's MLA for the accreditation of quality 
management systems certification bodies (ISO  9001) and environmental management systems 
certification bodies (ISO  14001) and, since 2016, the accreditation of inspection bodies.  
3.138.   In the field of metrology, the INN represents Chile at meetings of the General Conference 
on Weights and Measures (CGPM) and the International Bureau of Weights and Measures (BIPM). In 
2000, the INN signed the MLA of the International  Committee of Weights and Measures (CIPM -MRA), 
which allows test and calibration certificates issued by the National Metrology Network to be 
recognized internationally. Since 1995, the INN has been part of the Inter -American Metrology 
System (SIM).141 
3.139.   The internal procedures for the drafting of Chilean Standards are specified in the 
Standardization Service Regulations, following the criteria internationally accepted by the ISO and 
the International Electrotechnical Commission (IEC).142 The INN Council, s itting on 24  June 2019, 
approved new Standardization Service Regulations that establish the processes and requirements 
that apply to the production of normative documents, whether Chilean Standards or Technical 
Publications, drafted by the INN and stemming  from a standardization service. From the date of 
approval of the new Regulations, the INN abrogated the following Chilean Standards: NCh1:2011 
Chilean Standards (NCh) – Definitions and procedure for their consideration and maintenance, and 
NCh2851:2012 Te chnical Publications – Definitions and procedure for their consideration and 
revision, since the contents of these are dealt with in the new Standardization Service Regulations 
and in the Internal Procedures of the Standards Division.  
3.140.   The standardization p rocess is initiated at the request of a person or public or private entity. 
Natural or legal persons wishing to make use of the standardization service may make a request 
using the Standardization Service Request Form available on the INN website, or in pe rson or 
virtually to receive technical assistance to complete the form. The INN Standards Division submits 
this information to the Standards Committee for its opinion. The Standards Committee is empowered 
to approve the standardization service request, rej ect it or request further information from the 
Standards Division and/or the client, as appropriate. If the Standards Committee agrees to study a 
standards document, it must indicate the type of standard to be prepared and the process to be 
used, sending t he applicant a quotation for the type of service to be provided; once approved by the 
client, the draft contract will be sent to the client for signature. Once both parties have signed the 
contract, the standardization process can begin.  
3.141.   The procedure for developing a standard starts with a draft standard, which may be drawn 
up by the INN or by an external organization. The draft may be produced on the basis of 
international, regional or foreign standards, or from national precedents. The INN may determine 
that the draft should be submitted to a Draft Committee or move directly to the public consultation 
stage, which is announced on the INN website, indicating the identification code, the title of the draft 
standard and the consultation  closing date.  
3.142.   The INN  may invite those organizations and individuals with an interest in the subject under 
consideration to participate in the public consultation. The public consultation period for a draft 
standard is set by the Standards Committee, taking into account, among  other factors, whether the 
draft standard is a revision, or whether there are reasons of safety, health or risk of environmental 
damage. At the end of the public consultation period, if the draft standard has received no 
comments, it may be submitted to t he Executive Director of the INN, thereby ending the 
standardization service. If comments are made on the draft standard under public consultation, the 
Standards Division will set up a technical committee open to the participation of interested parties 
and led by a technical secretary appointed by the INN. Once the analysis of the comments has been 
completed, the final version is prepared and submitted for approval by the members of the technical 
committee, which must be by consensus, and for validation by the INN's Standards Division. Based 
on this version, the final draft of the standard is prepared and submitted to the Executive Director 
of the INN, thus completing the standardization service contracted.  
 
141 Information provided by the INN. Viewed at: https://www.inn.cl/quienes -somos . 
142 National Standardization Institute (2019), Reglamento del Servicio de Normalización.  Viewed at: 
https://www.inn.cl/sites/default/files/ReglamentoNormalizacion.pdf . WT/TPR/S/451/Rev.1  
- 79 - 
  3.143.   Chilean Standards are updated and reviewed when a n eed is detected by a public or private 
third party and is financed by that party. Internal requests may also be triggered by the needs of 
the INN. The procedure for updating standards is the same as drafting procedure described above.  
3.144.   The INN keeps a catal ogue of Chilean standards and gathers information on standards under 
consideration, which can be viewed on its website.143 As at 30  June 2023, there were 4,301  Chilean 
Standards.  
3.3.2.4   Conformity assessment and certification  
3.145.   The preparation and application of con formity assessment procedures defined by the 
competent regulatory authority follow the same stages and time limits as technical regulations. In 
general, each technical regulation includes its conformity assessment process. The regulation defines 
the requir ements to be fulfilled by the conformity assessment bodies involved. According to the 
authorities, for both imported and domestic products, compliance with technical regulations is, for 
the most part, verified after the products have been placed on the mar ket. Only in case of imports 
of certain products, mostly foodstuffs, beverages, medicines, weapons, radioactive substances, 
electrical goods and fuels, does verification take place at the border.  
3.146.   In most cases, conformity assessment is the responsibility o f bodies accredited by the INN, 
although in some cases, the ministry or government authority that issued the technical regulation 
carries out the verification using its own facilities. The government authorities which recognize INN 
accreditation include SA G, the Ministries of the Economy, Health, Housing and Urban Planning, 
Labour and Social Security, and Women and Gender Equity, the Public Health Institute (ISP), 
Sanitary Services Supervisory Authority (SISS), the National Customs Service, the National Tra ining 
and Employment Service (SENCE), the Under -Secretariat of Fisheries and Aquaculture (SUBPESCA), 
the National Fisheries Service (SERNAPESCA), the National Tourism Service (SERNATUR) and the 
Electricity and Fuels Supervisory Authority (SEC). A declarati on of conformity from the supplier is 
not acceptable.  
3.147.   All goods which, in accordance with the legislation in force, must be subject to checks prior 
to importation by a state body must be certified upon entry into Chile. A list of these goods is set 
out in Table 3.1. Among the products requiring pre -market certification are electrical products, 
cosmetics and hygiene products. In the case of electrical products and products that use fuels, the 
SEC is responsible for establishing, maintaining and enforcing the  mandatory certification system, 
by drawing up the specific protocols that domestic and international electrical products and 
fuel-related equipment marketed in the country must follow for their proper safety and energy 
efficiency performance, and authoriz ing certification bodies and testing laboratories. The certification 
of these products is governed by the Regulation for the Certification of Electrical Products and 
Fuel-Related Equipment, which establishes the procedures for the safety and quality certif ication of 
electrical products.144 Each product has its own protocol pursuant to Article 6 of the Regulation, 
which states that whatever the origin of the products, they must be certified prior to being 
commercialized in the country, through one of the cert ification systems indicated in Article 5 of the 
Regulation145, in accordance with the testing protocols established by the Supervisory Authority.  
3.148.   Chapter VII of Decree No.  298 of 10  November  2005 deals with the recognition of foreign 
certificates. According  to Article 21, persons interested in marketing products with certificates issued 
abroad may opt for the Special Certification System, for which, among other requirements, they 
must provide a document issued by an accreditation body certifying that the cer tification body 
issuing the certificates is properly empowered to certify the products, and a copy of the foreign 
standard or technical specification used for the certification of each particular product. In addition, 
the accreditation body must be a signa tory to the multilateral recognition agreement of the 
International Accreditation Forum (IAF). Once the background information has been evaluated and 
it has been determined that the standards or technical specifications submitted comply with those 
establis hed in the national protocols, the SEC will issue a resolution specifying the body issuing the 
foreign certificates, the list of products authorized for certification and the technical standards or 
 
143 The approved rules are available at: https://www.inn.cl/nch -aproba das. 
144 Decree No. 298 of 1 February 2006 and its amendments, Ministry of the Economy, Development and 
Reconstruction.  
145 The systems laid down in the Regulation are based on the ISO/CASCO Guide , "Assessment and 
verificati on of conformity to standards and technical specifications".  WT/TPR/S/451/Rev.1  
- 80 - 
  specifications applicable to each product. This resolution  is an essential requirement for the 
subsequent issuance of the certificate establishing the conformity of the batch by the certification 
body.  
3.149.   The SEC website contains the list of electrical products and fuel -related equipment subject 
to certification, ce rtification bodies and authorized testing laboratories. The products subject to 
mandatory certification are those determined by the Ministry of Energy by means of a resolution, as 
suggested by the SEC.146 Electrical products subject to compulsory certificat ion include appliances, 
apparatuses, accessories, equipment, instruments, devices, materials or machinery that use, store 
or transport electrical energy or are electrical insulators, or parts thereof. In the case of fuel -related 
equipment, this generally c oncerns apparatuses, fittings, cylinders, devices, tanks, materials, 
equipment, instruments and piping, which are used to release energy or to store, transport, dispense 
and measure liquid or gaseous fuels, or parts thereof. The certification requirements apply to both 
manufacturers and importers and/or traders, who must obtain a certificate of approval for their 
product, irrespective of its origin, from a certification body authorized by the SEC. If this certification 
is obtained, these products receive th e SEC Seal, which identifies those products that comply with 
current Chilean regulations and minimum safety standards.  
3.150.   Pharmaceutical products and cosmetics, whether imported or manufactured in Chile, must 
have a sanitary authorization from the Ministry of  Health and be registered with the Institute of 
Public Health prior to their commercialization. Authorization is subject to compliance with the health 
regulations approved by the Ministry of Health. The registration application form is available on the 
Institute's website. The regulations on pharmaceutical products are set forth in Decree No.  3 of 2011 
of the Under -Secretariat of Public Health.147 The regulations governing cosmetics are contained in 
Decree  No. 239 of 2002 of the Ministry of Health.148 
3.151.   Labelling, classification and packaging requirements also apply. For example, pursuant to 
Supreme Decree No.  977/96 of the Ministry of Health, approving the food health regulations, all 
packaged or canned foods imported into Chile must display labels in Sp anish and specify, inter alia , 
all ingredients and additives, dates of manufacture and expiry, together with the name of the country 
of manufacture and the importer's details. The labels must also include the nutritional value of all 
packaged foods and bev erages per 100g/ml and per serving typically consumed for both domestic 
and imported products, as well as a black octagonal symbol with a white border and the words 
"HIGH  IN", where appropriate.149 
3.152.   SAG is responsible for establishing the rules and procedure s for the importation and release, 
under confined conditions, of genetically modified (GM) vegetative propagating material imported or 
developed in Chile. The confined sowing of an imported or domestically -developed genetically 
modified organisms (GMO) is allowed with prior authorization from SAG, following a case -by-case 
risk analysis process, depending on the species and the genetic modification incorporated, and the 
establishment of biosafety measures. The only activities that SAG permits are growing see dlings for 
export purposes and carrying out evaluation trials. SAG inspects and oversees all GMO seedbeds 
and trials in the country, for the entire crop cycle, in order to verify compliance with the biosafety 
measures established for each species so as to be able to guarantee their complete traceability.  
3.153.   Law No.  20.656 of 28  January  2013, which regulates commercial transactions in agricultural 
products, establishes mechanisms and instruments to regulate the procedures that determine the 
quantity and quality  of products traded in the agricultural market.150 This Law sets forth a mandatory 
procedure for the analysis of samples and counter -samples, and measurement, as appropriate, of 
agricultural products traded in the domestic market and not regulated by a spec ial law. It provides 
for specific regulations to be issued by the Ministry of Agriculture, determining the agricultural 
products that will be subject to the procedure established by law and laying down the methodologies 
for the measurement of the quantity,  mass or volume of the products, as well as for taking, 
collecting, handling, preserving, transporting and the custody of samples and counter -samples and 
 
146 Information from the SEC. Viewed at: https://sec.custhelp.com/app/answers/detail/a_id/265 . 
147 Decree No. 3 (Regulations for the National Control System for Pharmaceuticals for Human Use) of 
25 June 2011 and its amendments, Ministry of Health.  
148 Decree No. 239 (Regulation of the National Control System for Cosmetics) of 20  June 2003 and its 
amend ments, Ministry of Health.  
149 The "HIGH IN" sticker is the symbol that must be displayed on foods that exceed established limits 
for calories, total sugars, sodium and saturated fat.  
150 Decree No. 19 of 2013 approved the regulations for Law No. 20.656.  WT/TPR/S/451/Rev.1  
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  the analysis of their characteristics. Regulations are currently in force for maize, wheat, wine grape s 
and oats. The analysis is conducted in SAG laboratories.151 
3.3.2.5   Accreditation  
3.154.   The INN is the accreditation body in Chile. Through its Accreditation Division, it operates the 
National Accreditation System, which evaluates the competence of conformity assessmen t bodies 
(CABs) in accordance with internationally defined and accepted criteria and requirements. While 
accreditation is voluntary, the regulatory authority sometimes requires accreditation in the National 
Accreditation System of the INN in order to autho rize and recognize certification bodies, inspection 
bodies and laboratories.  
3.155.   According to the authorities, the National Accreditation System complies with the principles 
of transparency, confidentiality, independence and impartiality. To this end, the Nati onal 
Accreditation System applies a policy of impartiality and has a document (DA -I03) which sets out 
the sources of income of the INN, available for consultation at the offices of its Accreditation 
Division.152 
3.156.   The different types of CAB which may request accreditation include systems certification 
bodies, products and persons, inspection bodies, testing laboratories, calibration laboratories, 
medical laboratories and proficiency test providers. CABs wishing to become and remain accredited 
in the National A ccreditation System of the INN must comply with the provisions of the Regulations 
for the Accreditation of Conformity Assessment Bodies and, as the case may be, with the 
requirements set out in the corresponding standards.153 Applicant and accredited CABs s hall also 
consider the specific requirements and provisions for the different areas of conformity assessment 
activity set forth in standards, regulations, guidelines or other publications.154 
3.157.   The accreditation process comprises the following main stages: (a ) submission of the 
application; (b)  review of the application; (c)  initial assessment; (d)  review of corrective action, if 
applicable; (e)  accreditation decision; (f)  maintenance of accreditation – surveillance assessments; 
and (g) renewal of accreditatio n – renewal must be requested one year before the end of the 
accreditation cycle. Accreditation is granted for a five -year period. The product certification system 
does not restrict the country of accreditation bodies, with foreign accreditations allowed f or domestic 
certification bodies.  
3.158.   Several Chilean institutions recognize as equivalent the technical regulations or conformity 
assessment procedures of other countries. The main requirements for the recognition of foreign 
certification are that the certifi cates must be based on the international standards used in Chile and 
that the issuer of the foreign certificates is accredited by a signatory member of the International 
Accreditation Forum (IAF). For instance, in the case of the SEC, the regulations on ce rtification of 
electrical products and fuel -related equipment, approved by Decree No.  298 of 2005, provides for 
the recognition of foreign certification. This recognition makes it possible to obtain the type of 
certification required in Chile and then, wit h the regular control or monitoring certification, to obtain 
the certificate of approval. In the case of SAG, there are equivalence agreements with the European 
Union and the United Kingdom concerning trade in organic products (2018); unprocessed plant 
products (only products listed in the Agreement); live animals or unprocessed animal products (only 
natural honey); processed plant products for use as food, including wine (only products listed in the 
Agreement); and vegetative propagating material and seeds  for cultivation (only products listed in 
 
151 SAG has a network of laboratories that include agricultural laboratories, fishery laboratories, a seed 
analysis laboratory and a biotechnology laboratory. Information provided by SAG. Viewed at: 
https://www.sag.gob.cl/content/red -laboratorios . 
152 Information provided by the INN. Viewed at: https://www.inn.cl/sistema -nacional -de-acreditaci on. 
153 (a) Systems certification bodies: NCh -ISO 17021/1 (ISO/IEC 17021 -1); (b) product certification 
bodies: NCh -ISO 17065 (ISO/IEC 17065), also applies to tourist services certification bodies; (c) testing and 
calibratio n laboratories: NCh -ISO/IEC 17025 (ISO/IEC 17025); (d) inspection bodies: NCh -ISO 17020 
(ISO/IEC  17020), also applies to verification bodies; (e) medical laboratories: NCh -ISO 15189 (ISO  15189); 
(f) proficiency test providers: NCh -ISO 17043 (ISO/IEC 17043) ; (g) bodies certifying persons : NCh -ISO 17024 
(ISO/IEC 17024); and (h) other CABs: in accordance with the applicable national or international standard.  
154 INN, Regulations for the Accreditation of Conformity Assessment Bodies. Viewed at: 
https://www.inn.cl/node/252 . WT/TPR/S/451/Rev.1  
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  the Agreement). Chile also has an agreement with the European Union on the beef carcass 
classification (grading) scheme and nomenclature of beef cuts (2016).  
3.159.   As regards accreditations issued by Chile's internationa lly recognized accreditation body, as 
at 31  December  2022, the INN had 593 accredited entities (CABs) with a total of 
1,522  accreditations in force, as a CAB can have more than one accreditation. As of June  2023, 
1,502 accreditations were in force.155 
3.3.2.6   Metro logy 
3.160.   Metrology in Chile is regulated by Supreme Decree No.  215 of 2009 of the Ministry of 
Economy, Development and Reconstruction, which recognizes the INN as the coordinating and 
supervising body of the laboratories designated by this Ministry and members  of the National 
Metrology Network (RNM). Supreme Decrees No.  347 of 2007, No.  775 of 1999, No.  487 of 2000, 
No. 96 of 2001 and No.  76 of 2003, all from the Ministry of Economy, Development and 
Reconstruction, stipulate the standards of mass, temperature, force, length and pressure and 
designate the laboratory responsible for chemical metrology for minerals. Supreme Decrees No.  188 
of 2010, No.  116 of 2012, No.  69 of 2017 and No.  114 of 2018, all from the current Ministry of 
Economy, Development and Tourism , designate laboratories in the fields of microbiology and food 
chemistry, electrical metrology, humidity and ionizing radiation. Supreme Decree No.  158 of 2010, 
which designated the laboratory in the field of liquid flow, was repealed by Supreme Decree No . 2 
of 2022.  
3.161.   The current Ministry of the Economy, Development and Tourism is responsible for extending 
membership of the RNM to laboratories, once they have met the requirements laid down by the INN, 
according to the RNM regulations, in their specific area  of metrology. The INN is the coordinating 
and supervisory authority for laboratories belonging to the RNM and also has the task of 
administering the public funds transferred to it.  
3.162.   The RNM consists of a first set of designated laboratories in the area of physics, where 
instruments and measurement standards are calibrated, and a second set of designated laboratories 
in the area of chemistry, which are the point of reference in the area of chemical metrology. The 
RNM performs the functions of a national metr ological institute and its main purpose is to establish 
the groundwork for the national quality infrastructure and thus ensure the quality of products, their 
interchangeability and the rights of consumers. The RNM coordinates and manages the metrological 
assurance system, which guarantees that measurements originating in Chile are comparable and 
traceable to the International System of Units (SI) and accepted in other countries. Their function 
is to ensure that measurements made in Chile are SI -traceable. T he RNM member laboratories 
provide SI -traceability to the industrial calibration and testing laboratories, which serve industry and 
commerce.156 The RNM member laboratories also conduct research in metrology and for the 
development of new measurement standa rds and methods, and provide standard calibration 
services to calibration laboratories and reference material to testing laboratories. They also act as 
pilot laboratories for proficiency testing at the national level.  
3.163.   The INN supports the establishment of metrology technical committees coordinated by its 
Metrology Division in conjunction with the designated institutes of the RMN, whose functions include 
helping to establish the metrological SI -traceability of measurements carried out in laboratories; 
helpin g to disseminate metrological traceability in Chile; and providing tools that allow continuous 
updating of theoretical and practical knowledge of industrial and scientific metrology to ensure the 
quality of the results issued by the laboratories.  
3.164.   The metro logy technical committees are composed, in principle, of technical representatives 
of the existing laboratories in the country, whether accredited, unaccredited or in the process of 
being accredited. However, preference is given to laboratories that regula rly participate in 
proficiency testing organized by the RNM. Stakeholders whose participation in the committee may 
be necessary to produce conclusions in relation to its work may be invited to join said committee.  
 
155 Information provided by INN. Viewed at: https://acreditacion.innonline.cl/ . 
156 INN: Metrology in Chile. Viewed at : https://www.inn.cl/la -metrologia -en-chile. WT/TPR/S/451/Rev.1  
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  3.3.3   Sanitary and phytosanitary measures  
3.165.   Chile has a relatively extensive legal and regulatory framework regarding the sanitary and 
phytosanitary system, and the preparation and application of sanitary and phytosanitary (SPS) 
measures is the responsibility of a number of authorities. Chilean regulation s on food safety and 
animal and plant health are summarized in Box 3.1.  
Box 3.1 Principal laws governing the sanitary and phytosanitary system, 2023  
Animal health  
Animal Health Law, DFL No.  16 of 9 March  1963 (last amended on 4  July 2012), Ministry of Finance.  
Organic Law on the Agriculture and Livestock Service, Law No.  18.755 of 7  January  1989 (last amended on 
10 October  2014).  
General Law on Fisheries and Aquaculture, Decree No.  430 of 21  January 1992 amended by Law No.  18.892 of 1989 (last  
amended on 24  July 2023). General Law on Fisheries and Aquaculture, Decree No.  430 of 21  January  1992 amended by 
Law No.  18.892 of 1989. Updated text of 31  January  2023, which includes the amendment introduc ed by Law No.  21.532 of 
23 January  2023, amending Law No.  18.892, General Law on Fisheries and Aquaculture, regarding the ban on the capture 
of salmon species from aquaculture farms.  
Regulations on Certification and Other Sanitary Requirements for the Im port of Hydrobiological Species, DS Minecon 
No. 72-11.  
Regulations on the First Import of Species, Decree No.  730 of 4  May 1996, Ministry of Economic Affairs, Development and 
Reconstruction.  
Plant health  
Organic Law on the Agriculture and Livestock Service, Law No.  18.755 of 7  January  1989 (last amended on 
10 December  2022, Law No.  21.507).  
Decree -Law No.  3.557 of 9  February  1981 (last amended on 26  June 2021 - Law No.  21.349) establishing provisions on 
agricultural protection.  
Food safet y and other matters  
Sanitary Code, DFL No.  725 of 31  January  1968 (last amended on 17  March  2023), Ministry of Public Health.  
Sanitary Regulations on Foodstuffs, Decree No.  977 of 13  May 1997 (last updated on 5  July 2022), Ministry of Health.  
Law No. 19.937 of 31  December  2008 establishing a new structure for the sanitary authority and different management 
methods and strengthening public participation.  
Organic Law on the Agriculture and Livestock Service, Law No.  18.755 of 7  January  1989 (last am ended on 
14 December  2022, Law No.  21.507), Title 1, Article 3, letter m final sentence.  
Source:  Information provided by the authorities.  
3.166.   The main institutions in charge of drafting and applying SPS measures are still the Ministries 
of Agriculture (through the Agriculture and Livestock Service (SAG)); Health (through the Under -
Secretariat of Public Health) and the Economy (through the Under -Secretariat of Fisheries 
(SUBPESCA) and the National Fisheries and Aquaculture Service (SERNAPESCA )). Each of these 
bodies is responsible for drafting and applying the SPS measures within their sphere of competence 
both as regards the domestic market and imports and exports. The Under -Secretariat for 
International Economic Relations (SUBREI) of the Min istry of Foreign Affairs heads the Ministerial 
Committee on Sanitary and Phytosanitary Matters.  
3.167.   SAG is the national service that acts as the national notification authority and enquiry point 
for the purposes of the WTO SPS Agreement. The drafting and notif ication process for SPS measures 
is governed by the "Recommended procedures for implementing the transparency obligations of the 
SPS Agreement" (G/SPS/7/Rev.5).  
3.168.   The authorities noted that SAG, in its role as national notification authority for the purposes  
of the SPS Agreement, has developed additional tools for national application to strengthen the 
application of the principle of transparency, one of which is the "Guide to Good Practices for National 
Notification Authorities of the Agreement on the Applic ation of Sanitary and Phytosanitary (SPS) 
Measures of the World Trade Organization (WTO)", published in November  2020.157 
 
157 SAG. Viewed at: 
https://www.sag.gob.cl/sites/default/files/guia_de_buenas_practicas_gestion_de_notificaciones_msf_chile_0.p
df. WT/TPR/S/451/Rev.1  
- 84 - 
  3.169.   The Ministry of Health, through the Food Health Regulations, regulates the production, 
import, processing, packaging, storage, distribu tion and sale of food for human consumption. Food 
must undergo sanitary controls and laboratory analysis based on risk criteria related to the nature 
of the food, the form of distribution, and the type of processing and packaging involved. These 
controls a re carried out by the Regional Secretariats of the Ministry of Health (SEREMIs). The 
competent authority for animal health for hydrobiological species and the safety of foods of aquatic 
origin is the National Fisheries and Aquaculture Service (SERNAPESCA),  which is responsible for 
verifying compliance with fishing and aquaculture regulations and conducting sanitary management. 
SERNAPESCA develops Aquaculture Health Programmes, in accordance with the provisions of the 
Aquaculture Health Regulations.  
3.170.   The proc ess of drafting an SPS measure begins when the need to update an existing measure 
is identified or when a sanitary event occurs that requires a new regulation. The procedure for 
drafting and notifying SPS measures is governed by the "Recommended procedures  for 
implementing the transparency obligations of the SPS Agreement". Draft SPS measures are drawn 
up by technical committees and are based, in general, on the international regulations of the 
International Plant Protection Convention (IPPC), the World Org anisation for Animal Health (WOAH) 
and the Codex Alimentarius, all organizations to which Chile belongs.  
3.171.   Regarding SAG's regulatory procedure, a new resolution proposal or amendment to an 
existing resolution can be initiated upon the request of the affecte d sectors or when issues have 
been identified by the relevant SAG Division. Once the issue has been identified and a regulatory 
solution formulated, the necessary internal consultations take place, the comments resulting 
therefrom are processed and the res olution is drafted. If the resolution involves a new origin or a 
new species of plant or plant product, a pest risk analysis needs to be conducted to establish the 
phytosanitary measures required. For animal health, the WOAH standards are followed. The rev ised 
resolution proposal is sent for review by the Legal Division, specifically the Regulatory Department, 
where the legal and technical coherence and consistency of the draft is evaluated. Where there is a 
need for clarification, technical meetings are co ordinated in order to clarify terms, actions and 
anything else required. After the draft has been agreed, it is returned with the approval of the Legal 
Division to proceed to public consultations and notification under the SPS Agreement. The 
consultation p eriod is 60 days, unless requests are made to extend this period, or if the measure is 
being introduced in the event of an emergency or in order to facilitate trade. Comments are taken 
into account after being analysed and depending on their basis. Once th ey have been received and 
processed, the resolution is revised again and undergoes another legal review before becoming the 
final version that will be signed by the National Directorate of the service.  
3.172.   Once the resolution is signed, it is sent to the Offic ial Journal for publication and is 
incorporated into the Regulatory Library, making it available to all users. SPS measures are enacted 
by means of a decree, resolution or other pertinent legal instrument issued by the competent 
institution. These instrume nts are available on the website of the relevant institution.158 
3.173.   Between 2015 and 2022, SAG established 310 SPS measures related to the entry of different 
products and merchandise into Chilean territory. Of these measures, around 80 % correspond to 
regulatio ns on plant health and the remaining 20 % to animal health. Forty eight % of these 
measures amend previous regulations, while 19 % repeal old regulations, replacing them with 
updated ones. The authorities are of the view that the implementation of internatio nal standards by 
SAG, including the conduct of a risk assessment to ensure compliance with international agreements, 
has contributed to protecting animal and plant health, and has facilitated international trade.  
3.174.   Between January  2015 and March  2023, Chile submitted 444 notifications to the WTO's 
SPS Committee, including addenda and corrections (233 new regular notifications, 157 addenda to 
regular notifications, 12 corrections, 14 revisions, 18 notifications of emergency measures, 
9 addenda and a revision t o notifications of emergency measures). During the review period, no 
WTO Member filed new complaints against Chile in the SPS Committee.159 
 
158 Information from the Agriculture and Livestock Service (SAG), viewed at: https://www.sag.gob.cl ; 
the Ministry of Health, viewed at: https://www.minsal.cl ; and the National Fisheries Service, viewed at: 
https://www.sernapesca.cl . 
159 WTO information. View ed at: 
https://eping.wto.org/en/Search/TradeConcerns?domainIds=2&memberResponding=C152 . WT/TPR/S/451/Rev.1  
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  3.175.   Most of the SPS measures notified to the WTO during the 2015 –22 period were based on 
international standards. If a ri sk assessment reveals the need for more stringent regulation s than 
the international one s, the regulation s are drafted internally.  
3.176.   SAG defines the general and specific animal and plant health requirements to be met when 
importing livestock or plant product s into Chile. The import of animal and plant products into Chile 
requires an animal or plant health certificate issued by the competent health authority of the country 
of origin .160 In addition, the import and transit of animals, and livestock and plant products must 
occur through ports authorized by SAG, with verification of compliance with animal and plant health 
regulations .161 Furthermore, imports of plants and plant products must comply with SAG's 
phytosanitary requirements, which are contained in specific regulations published in the Official 
Journal in the form of resolutions. Any natural or legal person can request an import authorization. 
To obtain an import authorization for a regulated article or dangerous goods of material subject to 
a pos t-entry quarantine regime, the specific regulations and procedures for this type of material 
must be followed. The phytosanitary requirements and entry conditions for a regulated article or 
goods dangerous to plants can be consulted on the SAG website or a t SAG's regional directorates or 
offices in each region of the country. Where importing regulated articles or goods dangerous to 
plants for which no phytosanitary requirements are published in the Official Journal, an application 
for authorization to impor t regulated articles must be submitted to the corresponding SAG office. 
There, an assessment of the phytosanitary requirements for product entry can be initiated through 
a pest risk analysis (PRA).162 In addition, depending on the risk, SAG determines wheth er the import 
can be authorized and establishes the phytosanitary requirements, which must be submitted for 
public consultation nationally, notified to the WTO and finally published in the Official Journal.  
3.177.   The Regional Secretariats of the Ministry of Heal th (SEREMIs) determine whether imported 
food is suitable for human consumption. This is done through in -person or document -based sanitary 
inspection, according to the risk criteria involved and the history of compliance with the regulation 
recorded for pre vious imports. This process is carried out for all food items through the health 
authority's digital platform. The criteria are set out in the Exempt Resolution establishing the "Manual 
on the Importation of Food Destined for Human Consumption".163 With reg ard to exports, the 
SEREMIs issue certificates of free sale (CLV), which certify that the foods declared by the exporters 
or their representatives are authorized for use, consumption and marketing in Chile. To request a 
CLV, one must have sanitary authoriz ation from the food facility and this document must be 
authenticated by the Ministry of Foreign Affairs.  
3.178.   Importers must ensure that they have the necessary certification in accordance with the 
established requirements. Such certification is verified throug h documentary and physical inspection 
at the border via the Import System. Some goods, such as live animals and plants (including seeds), 
are required to enter post -entry quarantine (PEQ) before their definitive release to the national 
market. All imported  animals, regardless of their origin, must enter PEQ once approval has been 
given during the documentary and physical inspection at the border entry control. During quarantine, 
the health status of the animals is verified and species -specific inspection an d diagnostic tests are 
carried out. In the case of plants and vegetables, phytosanitary assessments are carried out at the 
time of importation to check for the presence of pests. Plants and seeds undergo PEQ depending on 
the phytosanitary status of their c ountry of origin and on the basis of a phytosanitary risk analysis 
(see below) based on IPPC guidelines. Plant materials that must enter PEQ are plants or parts thereof 
intended for planting or grafting.  
3.179.   Exempt Resolution No.  3.815/2003, as amended by Exem pt Resolutions No.  2.781/2006 and 
No. 1.634/2016, establishes rules for the importation of regulated articles or goods dangerous to 
plants, which are classified according to their phytosanitary risk in the categories 0, 1, 2, 3, 4 and  5. 
 
160 Law No. 18.164 of 17 September 1982.  
161 Information from SAG, viewed at: https://www.sag.gob.cl./ambitos -de-accion/puertos -habilitados . 
The authorized ports are listed in Ministry of Agriculture Exempt Decree No. 510 of 21 December 2016. Viewed 
at: https://www.sag.gob.cl/sites/default/files/dto -510_exento_28 -dic-2016_5.pdf . 
162 General Rules governing the import of products of agricultural and forestry origin, contained in 
Resolution No. 3.815/2003 of 22 December 2003, as amended by SAG Resolutions No. 2.781/2006 and No. 
1.634/2016, which establishes rules for the importation of regulated articles or goods dangerous to plants. 
Viewed at: https://www.sag.cl/sites/default/files/RES_3815_2003.pdf . 
163 Exempt Resolution No. 322 of 19 June 2015. Viewed at: 
https://www.minsal.cl/sit es/default/files/files/Manual%20para%20la%20Importaci%C3%B3n%20de%20Alime
ntos%20destinados%20al%20consumo%20humano%20MINSAL%202015(1).pdf . WT/TPR/S/451/Rev.1  
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  Regulated articles  require an import authorization and must comply with the phytosanitary and/or 
biosafety requirements for entry into the country, as well as with the entry conditions established in 
specific resolutions. Regulated articles must be packed in new, first -use containers, and each import 
unit must include information about the country of origin, name or code of the producer, plant 
species and other conditions required by the specific resolution.  
3.180.   Exempt Resolution No.  1.284/2021 of the Ministry of Agriculture est ablishes the 
categorization of plant products according to their pest risk, considering the method and extent of 
processing applied and their intended use. That includes goods entering the country for use as animal 
feed.164 Products are sorted into four cat egories: (a) category 1 covers processed products that are 
no longer susceptible to infestation by quarantine pests and therefore do not require phytosanitary 
measures or certification; (b) category 2 covers products that although processed, may still be 
infested by some quarantine pests (in this case, according to the method and extent of processing, 
the intended use of the product and the result of the inspections of imported goods, SAG may 
establish the phytosanitary certification requirement for certain  processes or goods); (c) category 3 
covers products that have not been processed, that have the potential to introduce or spread 
quarantine pests, and whose intended use is for a purpose other than propagation, such as 
consumption or processing (in these cases, a pest risk analysis is necessary. Products in this category 
include fresh fruits, fresh vegetables, fresh cut flowers and branches, stems for consumption, and 
roots, rhizomes, tubers, bulbs and corms); and (d) category 4 covers products that have n ot been 
processed, that have a higher possibility of introducing or spreading regulated pests and whose 
intended use is propagation (in this case a pest risk analysis is also necessary. This category 
includes: cuttings, stakes, roots, rhizomes, tubers and bulbs; micropropagated material; plants; in 
vitro plants; pollen; branches and twigs; seeds; stems; and other plant material for propagation).165 
3.181.   In accordance with SAG Exempt Resolution No.  1.284/2021, products in categories 2, 3 
and 4 and products in cate gory 1 destined for animal consumption and that require livestock 
approval, or organic products destined for human or animal consumption, must be presented to SAG 
at the authorized point of entry for the respective import procedure to be carried out. SAG u ses pest 
risk analysis to determine the risk of regulated pests and to establish phytosanitary measures for 
products classified in categories 2, 3 and 4. The products classified in the aforementioned categories 
must arrive in Chile with a phytosanitary exp ort or re -export certificate issued by the corresponding 
phytosanitary authority of the country of origin or provenance. These products must comply with 
the phytosanitary requirements established by SAG in current regulations and specific resolutions. 
Any other regulated article not considered in the previous categories, the importation of which carries 
a phytosanitary risk of introduction and establishment of a regulated pest, must arrive in the country 
already in compliance with the phytosanitary requirem ents established by SAG in specific 
resolutions.166 
3.3.4   Competition policy and price controls  
3.3.4.1   Legal and institutional framework  
3.182.   During the period under review, Chile's legal framework regarding competition underwent 
important reforms aimed at improving the system for the defence of free competition and aligning 
national regulations with international standards, particularly the rec ommendations of the 
 
164 In its recitals, the Exempt Resolution specifies that the categorization of pro ducts according to their 
pest risk will facilitate the establishment of phytosanitary import requirements and the comprehensive 
application of animal health regulations, as well as the requirements applicable to organic products, in 
procedures established at the inspection sites of the authorized ports of entry into the country. In addition, the 
risk classification facilitates the making of decisions regarding the need for, or intensity of, the inspection of 
imported goods, with a view to maximizing the eff ectiveness of plant or animal health actions aimed at 
detecting regulated pests or other instances of non -compliance in imported goods. Exempt Resolution 
No. 1.284/2021 of the Ministry of Agriculture. Viewed at: 
https://www.sag.gob.cl/sites/default/files/res._1.284_de_2021_con_anexo.pdf . 
165 Exempt Resolution No. 1.284/2021 establishing the categorization of products of plant origin 
according to their pest risk and potential effects on animal health and according to their organic certification 
requirements and respective control measures at the border, and repealing Resolution No. 3.589 of 2012. 
Viewed at : https://www.sag.gob.cl/sites/default/files/res._1.284_de_2021_con_anexo.pdf . 
166 Exempt Resolution No. 1.284/2021. Viewed at: 
https://www.sag.gob.cl/sites/default/files/res._1.284_de_2021_con_anexo.pdf . WT/TPR/S/451/Rev.1  
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  Organisation for Economic Co -operation and Development (OECD).167 The reforms were introduced 
by Law No.  20.945 of August  2016168 and include the following: the establishment of a preventive 
and mandatory control system for mergers that e xceed certain thresholds; the tightening of 
sanctions against collusive practices, including the reintroduction of criminal liability for offenders; 
new mechanisms so that the victims of anti -competitive behaviour can be compensated for the 
damages suffere d; additional powers for competition authorities; and institutional and procedural 
improvements.  
3.183.   Chilean competition regulations are mainly established in Decree -Law No.  211 of 1973 (the 
Competition Law), which has been amended multiple times since then. I ts consolidated, coordinated 
and systematized text is found in Decree with Force of Law No.  1 of 2005, the updated version of 
which includes the amendments made by Law No.  20.945 of 2016.169 The Competition Law applies 
to any individual or company, whether Chilean  or foreign, and to the State. It does not establish 
exclusions and is applicable to foreign trade operations insofar as they have an effect on competition 
in the Chilean market.  
3.184.   The bodies in charge of monitoring the implementation of, and complian ce with, Chile's 
competition regulations are the National Economic Prosecutor's Office (FNE) and the Competition 
Tribunal (TDLC). The FNE acts as a specialized service for conducting investigations concerning free 
competition in the markets, while the TDLC  is the jurisdictional body responsible for hearing and 
settling conflicts arising from acts that violate free competition. The Supreme Court is empowered 
to review the decisions of the TDLC.  
3.185.   The FNE safeguards and promotes competition in all markets and p roduction sectors of the 
economy. It is a decentralized public service with its own legal personality and assets and is 
independent although subject to the supervision of the President of the Republic through the Ministry 
of Economic Affairs, Development a nd Tourism. It may initiate investigations into possible 
infringements of competition regulations; draft technical reports requested by the TDLC; ensure 
compliance with the decisions of the TDLC; sign extrajudicial agreements; and carry out activities 
to promote free competition. The FNE is empowered to act as a party before the TDLC, representing 
the general public economic interest, and may also defend or contest rulings of the TDLC before the 
Supreme Court. In addition, Law No.  20.945 of 2016 empowered t he FNE to hear cases on economic 
mergers requiring prior notification, file criminal lawsuits for crimes of collusion, carry out 
assessments on the competitive evolution of the markets, and draft regulatory recommendations to 
the executive.170 
3.186.   The FNE carri es out investigations, at the request of a party or ex officio , concerning any 
occurrence, act or agreement that prevents, restricts or hinders free competition, or that tends to 
have such effects. Its investigations focus on collusive practices, abuse of monopolistic position and 
mergers that affect or may affect the efficient functioning of markets or consumer well -being. It 
should be noted that the FNE does not directly penalize non -compliance with free competition 
regulations; rather, if deemed appropri ate, it submits the results of its investigations to the TDLC, 
requesting the latter to adopt the appropriate measures or penalties to prevent or remedy the 
anti-competitive effects of the conduct or occurrence investigated. This can be done through 
non-contentious proceedings or injunctions (petitions) of a contentious nature.  
3.187.   The TDLC is a special and independent court made up of five ministers, the function of which 
is to prevent, remedy and penalize acts contrary to free competition. It is not part of t he judiciary 
but is subject to oversight by the Supreme Court. The TDLC can initiate proceedings at the request 
of the National Economic Prosecutor or an individual. It may also initiate proceedings ex officio .171 
It is empowered to rule on any contentious process concerning acts or occurrences that may violate 
the Competition Law, and adopt the measures (including preventative measures) and penalties 
necessary to prevent or remedy their anti -competitive effects. Such measures may include the 
amendment or te rmination of contracts, orders to modify anti -competitive conduct, the dissolution 
 
167 OECD (2014), Assessment of Merger Control in Chile . Viewed at: 
https://www.oecd.org/daf/competition/chile -merger -control -2014-en.pdf . 
168 Law No. 20.945 of 30 August 2016.  
169 DFL No. 1 of 7 March 2005, Ministry of Economic Aff airs, Development and Reconstruction.  
170 Article 39 of Decree -Law No. 211 of 22 December 1973 and amendments thereto, Ministry of 
Economic Affairs, Development and Reconstruction.  
171 Article 18 of Decree -Law No. 211 of 22 December 1973, Ministry of Economic Affairs, Development 
and Reconstruction.  WT/TPR/S/451/Rev.1  
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  of companies and the imposition of fines.172 The TDLC may also be consulted in non -contentious 
proceedings. Likewise, it can issue general instructions on competition matters  for a specific market 
and propose regulatory recommendations to the President of the Republic. Law No.  20.945 of 2016 
also empowered it to decide on appeals for special review filed against FNE resolutions that prohibit 
mergers, and to hear and decide com pensation for damages due to a final judgment (a competency 
that previously corresponded to the civil courts). The decisions of the TDLC may be appealed before 
the Supreme Court.  
3.188.   Decree -Law No.  211 seeks to promote and defend free competition in the market s, and 
penalizes any occurrence, act or agreement, executed individually or collectively, that prevents, 
restricts or hinders free competition, or that tends to have such effects. It defines as anti -competitive 
conduct collusive practices, including price fixing, limiting production, assigning market quotas or 
zones and bid rigging, regardless of the market power of the parties. Similarly, the law penalizes 
the abuse of a dominant position and predatory or unfair competition practices the aim of which is 
to attain, maintain or increase a dominant position.173 In addition, Law No.  20.945 of 2016 defined 
as anti -competitive conduct, under certain circumstances, a person's simultaneous holding of 
relevant executive positions or directorship in two or more compet ing companies (interlocking).  
3.189.   Among the reforms made by Law No.  20.945, the strengthening of the penalty system for 
collusive practices stands out. First, collusion was classified as a criminal offence, with prison 
sentences of between three and 10 years, and an effective prison sentence of at least one year. 
Secondly, fines were increased, introducing a flexible maximum amount of up to double the profits 
obtained by the offender (the economic benefit) or up to 30 % of the offender's sales corresponding 
to the line of products or services associated with the infringement during the period that the 
collusive practice lasted. Thirdly, the offender may be disqualified, for seven to 10 years, from acting 
as director or manager in certain types of companies, and p rohibited, for up to five years, from 
entering into any type of contract with state agencies and entities or from being awarded any 
concession granted by the State. It should be noted that the fines and the penalty of disqualification 
are applied to all vi olations of free competition, not only to collusive practices.  
3.190.   One of the most important changes introduced by Law No.  20.945 is the establishment of a 
regime of prior and mandatory control of mergers, filling a gap in Chilean legislation. This change is 
expected to provide greater legal certainty to all those involved in these operations and protect the 
interest of consumers and society in general. Under the new regime, when the sales of the companies 
planning a merger exceed certain thresholds, the partie s must notify the operation to the FNE before 
its execution. The FNE has the power to determine and modify the corresponding thresholds.174 Once 
the notification is submitted and accepted, the FNE evaluates the operation within a period of 
30 days, at the e nd of which the National Economic Prosecutor must adopt one of the following 
decisions: (a) approve the merger as notified; (b) approve it on the condition that the notifier 
complies with certain measures; or (c) extend the investigation for up to 90 days through a justified 
resolution. If the period has elapsed without a decision by the Prosecutor, it is understood that the 
operation has been approved.175 The law prohibits the notifying parties from executing the merger 
before it is approved. In the event t hat, after having extended the investigation, the FNE decides to 
prohibit a merger, the parties may request the TDLC to review that decision through a special 
procedure.  
3.191.   In addition to the prior notification requirement for economic mergers, the 2016 refor m 
made it mandatory to inform the FNE of the acquisition of a stake of more than 10 % of the capital 
of a competing company, no later than 60 days after the merger. This obligation is applicable when 
 
172 Article 26 of Decree -Law No. 211 of 22 December 1973, Ministry of Economic Affairs, Development 
and Reconstruction.  
173 Article 3 of Decree -Law No. 211 of 22 December 1973, Ministry of Economic Affairs, Dev elopment 
and Reconstruction.  
174 The thresholds refer to the sales, separated and combined, of the companies that plan to merge, 
generated in Chile during the fiscal year prior to the one in which the notification is made. According to Exempt 
Resolution No. 157 of the National Economic Prosecutor of 25 March 2019, the thresholds are: 450,000 UF 
(about USD 20 million) or more for separate sales (of at least two of the parties that plan to merge) and 
2,500,000 UF (about USD 113 million) or more for the sum of t he sales of all parties.  
175 Article 54 of Decree -Law No. 211 of 22 December 1973, Ministry of Economic Affairs, Development 
and Reconstruction.  WT/TPR/S/451/Rev.1  
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  the annual income of both parties involved in the acquisi tion exceeds 100,000 UF (approximately 
USD 4.5 million).  
3.192.   The 2016 amendment to the Competition Law also introduced penalties (including fines and 
imprisonment) for those who obstruct FNE investigations by giving false information when notifying 
the merger,  hiding information or providing false information in response to a request from the FNE, 
or in the event that the investigated parties do not respond or do so partially without justification.  
3.193.   In addition, the reform empowered the FNE to assess the competi tive evolution of the 
markets. To this end, it may obtain information from both individuals and public institutions. 
Previously, the FNE was not authorized to request information from private entities. The reform also 
established a more expeditious procedu re so that victims of unlawful anti -competitive conduct can 
be compensated for the damages suffered and also empowered the TDLC to resolve compensation 
claims once a final condemnatory ruling has been issued.  
3.194.   Chilean legislation on safeguarding competition  also includes Law No.  20.169 of 2007, which 
regulates unfair competition.176 This law defines as unfair competition "any conduct contrary to good 
faith or customs that, through illegitimate means, seeks to divert customers from a market 
operator". Among the forms of conduct classified as such are free -riding on the reputation of t hird 
parties, disseminating false information on the characteristics or the price of one's own goods and 
services or those offered by others, defamation of third parties, the misuse of legal action to hamper 
the operations of a competitor and the use of co ntractual clauses or abusive conduct to the detriment 
of suppliers. Those affected by acts of unfair competition may bring proceedings before civil courts 
to take action, including the cessation and prohibition of the act, a declaratory ruling that it is a n 
unfair act, the elimination of its effects and compensation for damage. If the existence of acts of 
unfair competition is established, the courts forward their ruling to the National Economic Prosecutor, 
who may request the TDLC to impose a fine. The Unf air Competition Law was amended by Law 
No. 21.666 of 4  July 2019, allowing smaller supplier companies to claim compensation when they 
are harmed by the non -payment of unpaid balances.  
3.195.   Regulations to protect competition also include the relevant chapters in cluded in the trade 
agreements to which Chile is party, in addition to the international cooperation agreements on 
competition signed by the FNE.177 
3.3.4.2   Enforcement  
3.196.   Both the FNE and the TDLC ensure compliance with competition law. As indicated above, the 
FNE is  responsible for investigating anti -competitive conduct. Completed investigations may result 
in any of the following actions: submission of a request (petition) to the TDLC; consultation 
procedures at the TDLC (non -contentious proceedings); extrajudicial a greement approved by the 
TDLC; agreement or conciliation; closure of the investigation following cessation of conduct (change 
of conduct of the investigated operator) and closing of the investigation with forwarding of 
recommendations to the investigated o perator. The FNE issues the technical reports requested by 
the TDLC in contentious cases in which it is not a party. The FNE's activity in these areas during the 
period under review is shown in Table 3.12. In addition, in its work to promote free competiti on, the 
FNE publishes guides, as well as reports on the competitive evolution of the markets. To carry out 
its functions, the FNE recently created the Intelligence Unit, which reports to the Anti -Cartel Division 
and is in charge of implementing a cartel de tection system, improving investigation techniques and 
promoting international cooperation. In 2021, the Compliance Inspection Division was created to 
monitor compliance with the decisions of the TDLC and the Supreme Court, with a view to ensuring 
that the  mitigation measures established by the FNE when approving mergers are upheld. The 
Compliance Inspection Division also investigates offences concerning the merger control system.  
 
176 Law No. 20.169 of 16 February 2007.  
177 Agreements have been signed with Argentina, Ecuador, Honduras, Mexico, Mo rocco, Paraguay, Peru, 
the United States and the United Nations Conference on Trade and Development (UNCTAD).  WT/TPR/S/451/Rev.1  
- 90 - 
  Table 3.12 FNE: enforcement actions, 2015 -23 Year  
Requests  
Consultations  
Extrajudicial 
agreements  
Agreement or 
conciliation  
Closure resolution  
cessation of 
conduct  
Resolution with 
recommendation  
Reports to the 
TDLC  
2015 3 3 2 2 9 0 4 
2016 4 0 1 1 4 6 4 
2017 2 0 1 1 10 2 5 
2018 5 0 2 2 6 0 8 
2019 2 0 0 1 7 2 11 
2020 7 1 2 2 1 1 11 
2021 4 0 4 2 3 0 12 
2022 1 2 1 4 5 1 10 
2023a 1 0 2 0 1 2 1 
a From January to March.  
Source:  FNE information online. Viewed at:  
https://www.fne.gob.cl/wp -content/uploads/2023/05/Presentacion -Cuenta -Publica -Participativa -202
2.pdf. 
3.197.   Since being empowered to hear and investigate economic mergers, the FNE has been very 
active in this area. From June  2017 to March  2023, the FNE received 241 prior notifications of 
mergers and initiated 218 investigations. Of t he investigations for which a termination (closure) 
resolution was issued, 195 operations received direct approval (approved under the notified terms), 
17 were approved with recommendations for measures to economic operators, and 4 mergers were 
prohibited (Table 3.13).  
Table 3.13 FNE: Annual statistics on economic mergers, 2017 –23 
Year Notifications 
received  Investigations 
initiated  Investigations 
completed  Termination resolutions  
Direct 
approval  Approval 
with 
measures  Prohibition  
2017a 29 24 18 14 4 0 
2018 55 56 54 47 5 2 
2019 40 37 41 38 2 1 
2020 31 28 28 26 2 0 
2021 46 36 38 34 2 0 
2022 35 30 33 30 2 1 
2023b 5 7 6 6 0 0 
Total  241 218 218 195 17 4 
a From June to December.  
b From January to March.  
Source:  FNE. Viewed at: 
https://www.fne.gob.cl/wp -content/uploads/2023/01/Estadisticas -Division -Fusiones -Ano-2022.pdf  and 
https://www.fne.gob.cl/wp -content/uploads/2023/04/Estadisticas -Division -Fusiones -Marzo -2023.pdf . 
3.198.   The TDLC is dedicated exclusively to hearing cases concerning free competition, at the 
request of the FNE or an individual, and is empowered to adopt the appropriate measures or 
sanctions. Between May  2016 and April  2023, the TDLC received a total of 304 cases, of which 206 
were contentious cases.178 
3.199.   In the contentious cases examined so far by the TDLC179, the most recurrent conduct has 
been the abuse of a dominant position. According to collected data, as of 30  April 2022, 40% of the 
cases tried concerned abuse of a dominant position, 28 % concerned collusion and acts of authority 
(14% each), 12 % concerned unfair competition, and the rest concerned other practices, including 
the failure to notify (Chart 3.1). This trend did  not change significantly in the most recent reported 
year (from May  2022 to April  2023). There, abuse of a dominant position represented 43 % of all 
 
178 TDLC yearbooks (multiple years). Viewed at: https://www.tdlc.cl/anuario/ . 
179 Since its creation in 2004, the TDLC has handed down 182 rulings regarding contentious matters.  WT/TPR/S/451/Rev.1  
- 91 - 
  contentious cases, followed by collusion and acts of authority (13 % each), unfair competition (10 %), 
non-compliance (8 %) and others (9 %).180 
Chart 3.1 TDLC: contentious proceedings by category of conduct at 30  April  2022  
Source:  TDLC, May  2021 – May 2022 yearbook. Viewed at: https://www.tdlc.cl/anuario/ . 
3.200.   The industry most represented in TDLC proceedings has been telecommunications, which 
was the subject of 12 % of contentious cases, according to accumu lated data as of 30  April 2022. 
The statistics of the past year show no change. Other sectors particularly affected by 
anti-competitive practices have been transportation, concessions, retail trade, pharmaceuticals, food 
and beverages, fuel, financial serv ices, electricity, waste management, and the port sector. In the 
year 2022–23, the sector most represented in contentious proceedings was the financial sector, with 
31% of all cases.181 
3.201.   Empowered by Law No.  20.945, the TDLC has heard and resolved two appeal s for special 
review of FNE decisions prohibiting economic mergers.182 In the first case, the appeal was accepted. 
The TDLC revoked the FNE resolution and approved the merger in question.183 The second appeal 
was rejected and the TDLC confirmed the prohibiti on of the merger.184 However, the parties filed a 
complaint against this ruling and the Supreme Court modified the prohibition, accepting the 
operation with mitigation measures.185 
3.3.4.3   Price control  
3.202.   Under Chilean legislation, the State has no power to regulate o r control the prices of goods 
or services in a general way. However, price control or regulation policies can be implemented under 
the Competition Law or some of the laws governing public services. Currently, regulated prices only 
apply to certain basic se rvices, namely sanitary services (drinking water and sewage), electricity 
and some telecommunications services. Their application is based on the argument that these 
activities constitute natural monopolies and that, given their relevance to the community,  it is 
 
180 TDLC, May 2022 – May 2023 yearbook. Viewed at: https://www.tdlc.cl/anuario/ . 
181 TDLC, May 2022 – May 2023 yearbook. Viewed at: https://www.tdlc.cl/anuario/ . 
182 These are: (i) Appeal for special review by Ideal S.A. and others, against the FNE Reso lution of 
10 May 2018, and (ii) Appeal for special review by Nexus Chile SpA and another, against the FNE Resolution of 
3 February 2022.  
183 TDLC ruling. Viewed at: 
https://consultas.tdlc.cl/download/c17eaac18c1f226a3aebea23c03a487e?inlineifpossible=true . 
184 TDLC ruling. Viewed at: 
https://consultas.tdlc.cl/download/1719563f21638b065e261d710a4136b7?inlineifpossible=true . 
185 Ruling viewed at: https://www.pjud.cl/prensa -y-comunicaciones/getRulingNew/30593 . 
Collusion
14%
Other
3%Acts of 
authority
14%Unfair 
competition
12%
Barriers to 
entry
6%
Refusal of contract 1%
Abuse of 
dominant position 
40%Predatory pricing 2%Non-compliance 
with a 
resolution
7%
Failure to notify 1%
(Transitional Art. 4 bis)WT/TPR/S/451/Rev.1  
- 92 - 
  necessary to establish a tariff mechanism that makes it possible to avoid overpricing, while ensuring 
the profitability of the companies. In addition, Law No.  21.365, enacted on 27  July 2021, regulates 
the exchange rates applicable to payment card t ransactions.  
3.203.   The maximum rates that may be charged for drinking water and sanitation services are set 
by the Sanitary Services Supervisory Authority.186 Electricity rates are regulated by the National 
Energy Commission.187 In 2022, a rate stabilization fund and a new transitional electricity price 
mechanism were created for customers subject to price regulation.188 Law No.  18.168, the General 
Law on Telecommunications, establishes the conditions and services subject to the t ariff regime 
(fixed and wireless networks access services, and data roaming services).189 
3.3.5   State trading, state -owned enterprises and privatization  
3.3.5.1   State trading  
3.204.   Chile has notified the WTO that Comercializadora de Trigo S.A. (COTRISA) is the country's 
only s tate trading enterprise.190 COTRISA is a public limited company, created by public deed, whose 
purpose is to "buy, sell, package, store, transport, distribute, deliver and trade" the following 
products: wheat (HS heading 1001 and subheadings), maize (HS hea ding 1005 and subheadings), 
rice (HS heading 1006 and subheadings) and other cereals (tariff headings in Chapter  10). COTRISA 
enjoys no special privileges and is governed by Law No.  18.046 on Public Limited Companies and its 
implementing regulations.  
3.205.   Accor ding to the authorities, COTRISA is involved in the marketing of cereals, especially 
wheat, with the sole aim of mitigating the flaws in the setting of grain prices, which result from the 
oligopsonistic structure of agro -industry and which affect the negot iating power of small producers. 
COTRISA implements the Wheat Purchasing Programme, which is a support policy for the agricultural 
sector that seeks to promote an equitable relationship between the import price of wheat and 
domestic prices. COTRISA also pr ovides paid grain packaging and storage services and grain quality 
certification and training services, and disseminates trade information, with which it seeks to 
promote better and more transparent market performance.  
3.206.   COTRISA is not empowered to set and/o r determine import or export levels, or prices. While 
the company is authorized to carry out foreign trade operations, its participation in this area has 
been limited. Until the end of 2020, COTRISA had only exported on one occasion (where prices were 
determined through public bidding) and had not carried out any import operations ( Section  4.1.).191 
3.3.5.2   State -owned enterprises  
3.207.   Pursuant to the Constitution, the creation of state -owned enterprises (public companies 
created by law), as well as the participation of the State, whether as a majority or minority 
shareholder, in the management or ownership of companies (state -owned companies or companies 
with state participation) must be authorized by law adopted by a qualified quorum. State -owned 
companies are subject t o the regulations applicable to private firms and to oversight by the 
competent state agencies (Comptroller's Office, Supervisory Authorities, among others).  
3.208.   In 2023, there were 29 state -owned enterprises, including public companies created by law 
and comp anies with state participation (Table 3.14). Three companies were liquidated during the 
review period, while one, Fondo de Infraestructura S.A, was created. On the whole, state companies 
 
186 Decree with Force of Law No. 70 of the Ministry of Public Works, of 30 December 1988,  as amended 
by Law No. 21.075 of 15 February 2018.  
187 Decree with Force of Law No. 4 of the Ministry of Economic Affairs, Development and Reconstruction, 
of 5 February 2007, establishes the consolidated, coordinated and systematized text of the General Elec tricity 
Services Law (most recent amendment in 2022).  
188 Law No. 21.472 of 2 August 2022.  
189 Articles 24 bis and 25 of Law No. 18.168 of 2 October 1982 and amendments thereto (most recent 
amendment in June 2022).  
190 WTO documents G/STR/N/16/CHL of 31 October 2016, G/STR/N/17/CHL of 12 October 2018 and 
G/STR/N/18 of 18 November 2020.  
191 WTO document G/STR/N/18 of 18 November 2020.  WT/TPR/S/451/Rev.1  
- 93 - 
  had revenues of CLP  27,054,176  million in 2021, representing 11.2 % of Chilean GDP (compared to 
CLP 17,875,536  million and 9.4 % of GDP in 2015).192 
Table 3.14 List of state -owned enterprises, June  2023  
Name  Ownership structure  
(%) Subject to 
the SEP  
Corporación  Nacional del Cobre de Chile (CODELCO)  100% Treasury  No 
Empresa Nacional del Petróleo (ENAP)  100% Treasury  No 
Empresa Nacional de Minería (ENAMI)  100% Treasury  No 
Banco Estado de Chile (BECH)  100% Treasury  No 
Televisión Nacional de Chile (TVN)  100% Treasury  No 
Astilleros y Maestranzas de la Armada (ASMAR)  100% Treasury  No 
Empresa Nacional de Aeronáutica (ENAER)  100% Treasury  No 
Fábrica y Maestranzas del Ejército (FAMAE)  100% Treasury  No 
Fondo de Infraestructura S.A.  99% Treasury, 1% CORFO  No 
Empresa Portuaria Arica (under a concession)  100% Treasury  Yes 
Empresa Portuaria Iquique (under a concession)  100% Treasury  Yes 
Empresa Portuaria Antofagasta (under a concession)  100% Treasury  Yes 
Empresa Portuaria  Coquimbo (under a concession)  100% Treasury  Yes 
Empresa Portuaria Valparaíso (under a concession)  100% Treasury  Yes 
Empresa Portuaria San Antonio (under a concession)  100% Treasury  Yes 
Empresa Portuaria Talcahuano -San Vicente (under a 
concession)  100% Treasury  Yes 
Empresa Portuaria Puerto Montt  100% Treasury  Yes 
Empresa Portuaria Chacabuco  100% Treasury  Yes 
Empresa Portuaria Austral  100% Treasury  Yes 
Empresa de los Ferrocarriles del Estado (EFE)  100% Treasury  Yes 
Empresa de Transporte de Pasajeros METRO S.A.  55.55% CORFO, 44.45% Treasury  Yes 
Empresa de Correos de Chile  100% Treasury  Yes 
Empresa Concesionaria de Servicios Sanitarios S.A. 
(ECONSSA)  99% CORFO, 1% Treasury  Yes 
Zona Franca de Iquique S.A. (ZOFRI)  71.28% CORFO, 1.4% Treasury, 
27.2% other  Yes 
Polla Chilena de Beneficencia S.A.  99% CORFO, 1% Treasury  Yes 
Comercializadora de Trigo S.A. (COTRISA)  97.24% CORFO, 2.76% other  Yes 
Sociedad Agrícola SACOR SpA  100% CORFO  Yes 
Sociedad Agrícola y Servicios Isla de Pascua SpA 
(SASIPA)  100% CORFO  Yes 
Casa de Moneda de Chile S.A.  99% CORFO, 1% Treasury  Yes 
Source:  Information from the Budget Directorate (DIPRES). Viewed at: 
https://www.dipres.gob.cl/599/w3 -channel.html . 
3.209.   Some of the state -owned companies stand out for their significance to the Chilean economy. 
Such is the case of the Corporación Nacional del Cobre, the world's leading copper producer, which 
generated revenues of CLP  18,017,218  million in 2021, equivalent to 7.5 % of the coun try's GDP, 
and the Empresa Nacional del Petróleo, which had revenues of CLP  6,544,102  million in 2021 and 
accounted for 2.7 % of GDP.193 Other companies of note are the Banco Estado de Chile and the 
Empresa Nacional de Minería. In addition, the State is the owner or shareholder in companies that 
operate in sectors such as land transport, media, postal services, health services, defence, free 
zones, and coin production, among others. The Chilean Economic Development Agency (CORFO) has 
a majority shareholding i n many of these companies. One third of state -owned companies are 
concentrated in the port sector.  
3.210.   The Enterprise System (SEP) is the technical advisory body that represents the interests of 
the State in companies where the State is a partner, owner or sha reholder. SEP appoints the 
directors and oversees the management of the state -owned companies under its supervision, and 
ensures the efficient allocation of the resources of those companies, all with a view to maximizing 
the benefit for society.194 SEP over sees 20 state -owned companies, whose total revenues amounted 
to USD  1.05 billion in 2021, whose assets totalled USD  14 billion, and which had more than 
 
192 Budget Directorate, Ministry of Finance. Estadísticas de las Finanzas Públicas 201 3-2022. Viewed at: 
https://www.dipres.gob.cl/598/w3 -propertyvalue -15407.html . 
193 Budget Directorate, Ministry of Finance. Estadísticas de las Finanzas Públicas 201 3–2022. Viewed at: 
https://www.dipres.gob.cl/598/w3 -propertyval ue-15407.html . 
194 SEP online information. Viewed at: https://www.sepchile.cl . WT/TPR/S/451/Rev.1  
- 94 - 
  12,000  employees.195 The SEP Code establishes guidelines, minimum parameters and good 
corporate practices  aimed at enabling these companies to engage in more efficient, responsible and 
transparent management. It should be noted that in 2021 Law No.  21.356 was enacted, establishing 
that persons of the same gender may not exceed 60 % of board members of companie s supervised 
by SEP.196 In 2021, female participation in the boards of these companies reached 49 % and in 2022, 
51.8%. 
3.211.   State -owned enterprises are not subject to the Government Procurement Law, Law 
No. 19.886 ( Section  3.3.6), but to different regimes. Publi c companies created by law are governed 
by Law No.  18.575, the Constitutional Organic Law of 2001 on the general foundations of state 
administration, Article 9 of which establishes that the tendering process for procurement shall be 
governed by the princip les of free competition among bidders and equality in respect of the bases 
governing the contract. State -owned companies subject to SEP oversight follow the SEP Code 
guidelines, which mandate public bidding for acquisitions and contracts for goods and serv ices for 
amounts equal to or greater than 1,000 UTM (USD  78,456). Finally, state -owned port companies 
are governed by Law No.  19.542 of 1997, which stipulates that the contracting of goods and services 
requires public bidding, unless the amount is less tha n 1,000 UTM.  
3.3.6   Government procurement  
3.3.6.1   Overview  
3.212.   In 2003, Chile set up the Chilean Government Procurement and Contracts System based on 
a best practices mechanism. During the review period, amendments to legislation and directives 
continued to be introduced to  improve the System's functioning and efficiency. National treatment 
applies generally. There is no discrimination whatsoever between products, services or suppliers on 
the basis of origin. Purchasing by state -owned enterprises and for public works is gove rned by the 
respective regulations.  
3.213.   Chile uses an electronic procurement platform. To purchase and procure what they need, 
government entities use ChileCompra's transaction platform197, which consolidates in one place 
public buyers' requests and suppliers' tenders.198 Over 850  state agencies use ChileCompra's 
tendering platform to independently purchase and procure goods and services from more than 
110,000 suppliers.199 The ChileCompra  Directorate is the institution responsible for managing the 
platform, operating in accordance with a single regulatory framework based on transparency, 
efficiency, universality, accessibility and non -discrimination. ChileCompra is a decentralized public 
service attached to the Ministry of Finance and overseen by the Pr esident of the Republic. It was 
established under Law No.  19.886 of 11  July 2003 on government procurement200 and began 
operations formally on 29  August  2003.201 
3.214.   One of the strategic objectives of ChileCompra's Strategic Plan 2020 -24 is to promote the 
good c onduct of all government procurement system stakeholders through high levels of 
transparency and probity. To achieve this objective, the Plan seeks to create a traceable record of 
procurement processes at all stages of the supply cycle, and to enhance visi bility and facilitate access 
across all methods of procurement, thereby boosting participation. It also aims to maximize 
efficiency in public procurement, in terms of both total cost (price) and cost per transaction 
(process). This is intended to harness t he State's purchasing power by aggregating demand (synergy 
among government agencies), with ChileCompra taking on the role of facilitator between the State 
and the market in order to maximize efficiency and savings. The goal is also to have simpler, modern , 
digital and interconnected procurement processes that would allow public procurement to be 
managed with a focus on savings and providing greater added value to users. This is achieved by 
awarding framework agreements and coordinating purchases through de mand aggregation. This 
 
195 SEP, Memoria 2021 . Viewed at: https://www.sepchile.cl/wp -content/uploads/2022/09/Memoria -
Anual -2021.pdf . 
196 Law No. 21.356 of 3 July 2021.  
197 The website address is: www.mercadopublico.cl . 
198 Information from ChileCompra. Viewed at: https://www.chilecompra.cl/que -es-chilecompra/.  
199 ChileCompra Directorate, Strategic Plan 2020 -24. Viewed at: https://www.chilecompra.cl/wp -
content/uploads/2021/11/Estrategia2020 -2024-1.pdf. 
200 The Law was published on 30  July 2003 and has  been amended several times since then. The most 
recent amendment was introduced by Law  No. 21.445 of 28  April 2022.  
201 ChileCompra's website address is: https://www.chilecompra.cl/ . WT/TPR/S/451/Rev.1  
- 95 - 
  objective means having a fully digital supply chain and optimizing time lines, without compromising 
on quality.202 
3.215.   In 2022, procurement by the Chilean Government (excluding state -owned enterprises and 
concessions) amounted to around USD  15 billion, equivalent to 5.0 % of GDP (Table  3.15). Of this, 
70% was transacted by tender, 21 % by direct contracting, 6 % by framework agreement and 3 % by 
the agile procurement  module, Compra Ágil . Over 1.8  million purchase orders were processed in 
2022 via ChileCompra's government procurement platform, with 15 % corresponding to direct 
contracting, 38 % to tendering, 35 % to Compra Ágil  and 12 % to framework agreements. Some 58 % 
of purchase orders processed by ChileCompra involved smaller enterprises . 
Table 3.15 Amounts transacted by government procurement purchasing procedure, 
2015 -22 
(USD and units)  
Year  Procedure  Amount in USD 
(including VAT)  Purchase orders  Number of 
suppliers  
2015 Framework agreement  2,057,089,330  868,221  
78,974  Tendering  5,439,321,242  880,049  
Direct contracting  2,000,587,013  459,468  
Total  9,496,997,585  2,207,738  
2016 Framework agreement  2,482,341,485  1,034,680  
79,127  Tendering  5,069,177,677  850,509  
Direct contracting  1,939,636,857  420,983  
Total  9,491,156,019  2,306,172  
2017 Framework agreement  3,708,307,362  1,154,534  
77,996  Tendering  6,381,599,230  813,339  
Direct contracting  2,040,716,267  391,913  
Total  11,384,432,795  2,359,786  
2018 Framework agreement  2,962,117,298  1,209,291  
76,343  Tendering  8,826,951,750  785,779  
Direct contracting  2,262,817,709  386,746  
Total  14,051,886,757  2,381,816  
2019 Framework agreement  2,598,398,196  1,143,988  
75,713  Tendering  7,611,424,429  748,106  
Direct contracting  2,270,473,762  382,232  
Total  12,480,296,387  2,274,326  
2020 Framework agreement  2,168,329 716  590,214  
73,834  Tendering  6,802,944,771  559,934  
Direct contracting  3,355,636,944  466,697  
Total  12,326,911,431  1,616,845  
2021 Framework agreement  1,512,232,120  375,643  
70,818  Tendering  9,756,979,472  596,590  
Direct contracting  3,746,382,485  677,596  
Total  15,015,594,077  1,649,829  
2022 Framework agreement  849,371,737  221,548  
77,884  Tendering  10,551,421,201  684,814  
Direct contracting  3,622,036,852  903,205  
Total  15,022,829,790  1,809,567  
Source:  Information provided by the authorities.  
3.216.   The share of foreign suppliers in government procurement in Chile is relatively low, 
amounting to USD  45.3 million, or 0.3 % of the amounts transacted in 2022. The share of suppliers 
for most years in the period 2015 -22 was similar to that in 2022, except 2015 (0.9 % of the total) 
and 2018 (1.7 %) (Table  3.16).203 
 
202 ChileCompra Directorate, Strategic Plan 2020 -24. Viewed at: https://www.chilecompra.cl/wp -
content/uploads/2021/11/Estrategia2020 -2024-1.pdf. 
203 The authorities indicated in this regard that, because the share of foreign companies is very low 
relative to the total transacted, it is likely that only a few purchase orders explain the fluctuations in these 
years.  WT/TPR/S/451/Rev.1  
- 96 - 
  Table 3.16 Amounts transacted by foreign suppliers, 2015 -22 
(USD and  %) 
Year  Amount in USD  Purchase orders  Number  of 
suppliers  Share  in amounts  
2015 88,979,730  725 257 0.9%  
2016 25,989,780  782 270 0.3%  
2017 57,359,502  689 272 0.5%  
2018 243,150,039  600 258 1.7%  
2019 52,313,034  500 212 0.4%  
2020 29,179,823  429 158 0.2%  
2021 46,055,371  573 175 0.3%  
2022 45,282,843  560 184 0.3%  
Source:  Information provided by the authorities.  
3.217.   Chile is an observer in the WTO Committee on Government Procurement. Although it has 
not set thresholds at the multilateral level, Chile has accepted commitments on government 
procurement under the trade agreements it has concluded. The thresholds vary depending on the 
agreement and are reviewed ever y two years, except for the agreement with Argentina, in which 
case the thresholds are reviewed annually (Table  3.17).204 
Table 3.17 Government procurement thresholds by agreement, 2023  
Agreement  Threshold for  goods and services  
(CLP)  Threshold  for 
construction 
services  
(CLP)  Effective since  
Argentina  A 55,477,981  Not covered  1 January  2023 
B 221,911,923  
C 244,103,11 5 
Australia  (Section A) 61,607,000  5,317,180,000  1 January  2022 
(Section B) 377,388,000  
(Section C) 308,034,000  
Brazil  102,402,079  5,389,583,116  1 January  2022 
Canada  Annex K bis-01.1-1: 63,740,967  364,815,495  1 January  2022 
Annex K bis-01.1-2: 318,704,834  10,199,044,843  
Colombia  Section A: 53,627,372  5,362,737,196  1 January  2022 
Section B: 214,509,488  
Section C: 235,960,437  
CPTPP  Section A: 105,408,163  5,547,798,069  21 January  2023 
Section B: 21,911,923  
Section C: 244,103,115  
Ecuador  Section A: 102,402,079  5,389,583,116  1 January  2022 
Section B: 215,583,325  
Section C: 237,141,657  
EFTA (Appendix 1) 152,379,640  5,860,755,366  1 January  2022 
(Appendix 2) 234,430,215  
(Appendix 3) 468,860,429  
European Union  (Appendix 1) 139,446,697  5,363,334,507  1 January  2022 
(Appendix 2) 214,533,380 
(Appendix 3) 429,066,761  
Hong Kong, China  140,974,764  5,422,106,317  1 January  2022 
Japan  Subsection A: 109,145,810  5,457,290,517  1 January  2022 
Subsection B: 218,291,621  10,914,581,034  
Subsection C: 327,437,431  10,914,581,034  
Korea, Rep. of  Appendix 1: 53,627,372  5,362,737,196  1 January  2022 
Appendix 2: 214,509,488  16,088,211,588  
Appendix 3: 450,000  16,088,211,588  
Mexico  Central government entities: 49,694,007  6,460,209,391  1 January  2022 
Subcentral government entities: 
403,467,534  5,681,528,557  
Other covered entities: 248,469,267  7,951,399,316  
 
204 Information ava ilable on the SUBREI website. Viewed at: https://www.subrei.gob.cl/ejes -de-
trabajo/compras -publicas -internacionales/umbrales -thresholds . WT/TPR/S/451/Rev.1  
- 97 - 
  Agreement  Threshold for  goods and services  
(CLP)  Threshold  for 
construction 
services  
(CLP)  Effective since  
Pacific Alliance  Section A 53,895,831  5,389,583,116  1 January  2022 
Peru: 102,402,079  Mexico: 
10,335,931  
Section B 215,583,325  United States: 
8,012,922,672  
Section C 237,141,657  Mexico: 
12,721,740  
 United States: 
9,862,519,290  
P4a 53,627,372  5,362,737,196  1 January  2022 
United States  (Section A) 63,734,000  5,374,899,000  1 January  2022 
(Section B) 381,949,000  
(Section C) 318,671,000  
Uruguay  112,596,947  4,691,539,474  1 January  2022 
a Chile, Brunei Darussalam, Singapore and New Zealand.  
Note:  CLP 862:USD  1 in August  2023.  
Source:  SUBREI. Viewed at: 
https://www.subrei.gob.cl/ejes -de-trabajo/compras -publicas -internacionales/umbrales -thresholds . 
3.3.6.2   Legal framework and procedures  
3.218.   The legal basis for the Chilean government procurement regime for goods and services lies 
in the Primary  Law on Administrative Contracts for the Supply and Rendering of Services (Law 
No. 19.886 of 30  July 2003 and amendments theret o) and its implementing regulations (Ministry of 
Finance Decree No.  250 of 24  September  2004).205 This legal framework applies to procurement by 
all central government departments, regional and provincial governments, municipal authorities, the 
armed forces  and the Comptroller -General of the Republic. Law  19.886 does not apply to 
state-owned enterprises, which follow their own regulations on procurement. In the case of public 
works tendered by agencies other than MOP and MINVU, Law No.  19.886 applies as rega rds the 
mandatory use of the electronic procurement information system and the Government Procurement 
Tribunal (see below) and, in general, its application is supplementary.206 Public works tendered by 
MOP and MINVU are governed by their own regulations; th e use of the electronic procurement 
information system and the Government Procurement Tribunal is optional for such tenders.207 
3.219.   During the review period, several amendments were made to the legal framework for 
government procurement. Amendments made to Law  No. 19.886 include, in chronological order:  
• Law No. 20.883 of 2  December  2015 raising the maximum number of monthly sessions in 
which members of the Government Procurement Tribunal may participate;  
• Law No. 20.940 of 8  September  2016, amending Article  6, on  specifications for tenders, 
providing that procuring entities shall give priority to undertakings that have existing 
collective agreements with the labour organizations representing their workers;  
• Law No. 21.005 of 7  April 2017, amending Article 1, clarif ying that the government 
procurement law will also apply to the National Television Council;  
• Law No. 21.056 of 2  January  2018, amending Article  6, incorporating specific regulations 
applicable to tenders for the contracting by municipalities of solid waste  collection, 
transport or final disposal services;  
 
205 Laws No.  20.088 of 2006 and No. 20.238 of 2008, and Decree -Law No. 11 of 10  March  2010 
introduced amendments to Law No.  19.886. The regulations were amended by Ministry of Finance Decree 
No. 1.562, published on 20  April 2006, and  by Decree No.  260 of 13  July 2007.  
206 Law No.  19.886 and its implementing regulations can be viewed on the ChileCompra website: 
http://chilecompra.cl . 
207 Law No.  19.886 and its implementing regulations can be viewed on the ChileCompra website: 
http://chilecompra.cl . WT/TPR/S/451/Rev.1  
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  • Law No.  21.362 of 18  August  2021, amending Article  6, establishing that in tenders aimed 
at providing food services to early childhood, primary and secondary education institutions 
managed by the National School Assistance and Scholarship Board (JUNAEB), and in 
higher education and technical -professional training institutions or similar that have 
exchange points for higher education food scholarship cards, public health establishments, 
prisons and casinos a nd cafeterias within or affiliated with any institution or body of the 
state administration, the tender specifications must include conditions for the provision of 
food services for individuals with food intolerances, celiac disease or food allergies; and  
• Law No. 21.445 of 28  April 2022, amending Article  6, supplementing the specific 
regulations for municipal tenders for the collection, transport or final disposal of solid 
waste.  
3.220.   Several amendments were also made to the regulations implementing Law No.  19.886. In 
May 2015, certain articles of these regulations were amended.208 The changes introduced include: 
the creation of the Temporary Suppliers Union arrangement, which allows companies to work 
together without the need to establish new legal entities; a du ty of abstention for officials 
participating in procurement procedures in the event of any circumstance that detracts from their 
impartiality; a stipulation that when the amount awarded exceeds the estimated amount by more 
than 30 %, entities must explain t he technical and economic reasons for the difference in amount; a 
limitation on indefinite renewals of contracts; the clear distinction of roles among officials and teams 
involved in the procurement cycle; additions to the regulation of purchases for large r amounts in 
framework agreements ("large procurement" procedure); in tenders, the awarding of points for 
matters of high social impact; an increase to the threshold for requesting bid security; a limit to the 
possibility of modifying contracts awarded in previous tenders; regulations on the timely payment 
of suppliers; and regulations on the application of contractual penalties. Further amendments to the 
regulations were made by Ministry of Finance Decree No.  821 of 21 January  2020.209 These include 
the cre ation of the agile procurement process,  Compra Ágil , applicable to lower value purchases; 
regulations on coordinated purchases; and a provision whereby procuring entities may waive the 
requirement for performance guarantees in certain cases where there are  grounds for direct 
contracting.  
3.221.   On 29  March  2021, a draft law was introduced to the National Congress aimed at updating 
Law No. 19.886 and other laws in order to enhance the quality of public expenditure, improve probity 
and transparency standards, and in corporate circular economy principles into government 
procurement practices. The draft text seeks to: (i) improve probity and transparency in public 
procurement procedures; (ii) improve efficiency and foster innovation in government procurement; 
(iii) esta blish needs analysis as the first step in the procurement procedure for goods and services; 
(iv) implement circular economy principles in government procurement; (v) improve the functioning 
of the Government Procurement Tribunal; (vi) improve the functions  of the Directorate of Purchasing 
and Government Procurement in the public procurement system; and (vii) promote the participation 
of SMEs in public procurement procedures.  
3.222.   The institution responsible for the development and implementation of government 
procurement policy is the Directorate of Purchasing and Government Procurement (DCCP) or the 
ChileCompra Directorate. Established by Law No.  19.886, the DCCP is also in charge of maintaining 
and managing the electronic information system for purchasing and g overnment procurement 
(public market). All entities whose procurement is covered by Law No.  19.886 must use this system 
to obtain quotes, invite bids, source contractors, award contracts and carry out procurement 
procedures for goods, services and public w orks.210 ChileCompra aims to ensure efficiency in 
government procurement by applying high standards of probity and transparency. Access to 
https://www.mercadopublico.cl / is open  to the public and free of charge. All procurement procedures 
must be conducted through the electronic information system managed by ChileCompra. Invitations 
 
208 Information from the Governme nt of Chile. Viewed at: 
https://www.bcn.cl/leychile/navegar?idNorma=1077185 . 
209 Ministry of Finance Decree No.  821 can be viewed at: 
https://www.bcn.cl/leychile/navegar?idNorma=1141363&idParte=10093986&idVersion=2020 -01-21. 
210 Further information on the government procure ment process can be found on the ChileCompra 
website: https://www.chilecompra.cl/.  WT/TPR/S/451/Rev.1  
- 99 - 
  for public tenders may also be published in other international, national or regional media, in ad dition 
to official publication at www.mercadopublico.cl . 
3.223.   Law No. 19.886 and its implementing regulations define five government procurement 
procedures: (1) public tendering; (2 ) private tendering; (3) direct contracting; (4) framework 
agreements; and (5) Compra Ágil , which was introduced only recently.  
3.224.   The public tendering procedure is an "administrative procedure of a competitive nature 
through which the administration issues a  public call, inviting interested parties to submit proposals, 
subject to the established specifications, from which it will select and accept the most suitable" 
(Article 7(a) of Law  No. 19.886). This is the general rule in government procurement. Public 
tendering is mandatory when procurement exceeds 1,000  UTM and tenders must be published 
through the platform www.mercadopublico.cl  managed by ChileCompra. This method must always 
be used, unless the procuring entity can provide justification for exceptional, less competitive 
mechanisms, such as private tendering and direct contracting. This administrative process i s of a 
competitive and open nature. Interested parties are invited to submit proposals through a public call 
for tenders, in accordance with the established specifications, from which the most suitable proposal 
will be selected and accepted. Each governmen t agency is responsible for the tender specifications 
it publishes on www.mercadopublico.cl , describing the goods and services to be contracted, the 
relevant terms, deadlines and budget, and the criteria used to evaluate the suppliers' proposals in 
order to select the best bid. These specifications will also go vern the purchasing process and the 
final contract.211 
3.225.   Public bodies must set out the criteria for evaluating bids in their tender specifications. Such 
criteria should include the price of the bid, the experience of the bidders, the technical quality of the  
goods or services offered, technical assistance, after -sales service and delivery date. The criteria 
must be clearly specified with the applicable scores for each. The technical specifications for the 
goods or services to be procured must be generic and c annot refer to any specific brands. Bids are 
opened electronically. The contract is awarded to the bid that provides the most competitive 
combination in respect of the criteria set out in the specifications, through an administrative act that 
is also duly notified to other bidders. The administrative act awarding the procurement procedure 
and detailing the evaluation criteria and points scored that resulted in the awardee being declared 
as having made the most competitive bid, must be published.212 A contrac t cannot be awarded to a 
bid that does not meet the criteria and requirements set out in the tender specifications.  
3.226.   If the amount of a contract is 1,000  UTM or more, the call for tenders must be published at 
least 20  calendar days before the deadline for r eceiving bids. For lesser amounts, the minimum 
period is 10 days. These time frames may be shortened in the case of simple standard goods or 
services.  
3.227.   In order to make the public bidding process more transparent and efficient, ChileCompra 
promotes the use of specification template documents. ChileCompra encourages the use of these 
templates in the procurement process to facilitate the participation of state suppliers in larger public 
tenders. The documents have a standardized format with standardized admini strative clauses that 
have been subject to constitutional review by the Office of the Comptroller -General of the 
Republic.213 Before creating each specification template document, ChileCompra conducts market 
consultations and/or participatory public consult ations to gather comments from industry and 
national and international suppliers in each area.214 
3.228.   There is no provision in Chile's legislation for margins of preference for national suppliers 
and no discrimination whatsoever between products, services or su ppliers on the basis of origin. Nor 
is there any provision for offsets as a condition for awarding a contract or any set -asides for certain 
bidders. However, Ministry of Finance Decree  No. 250 of 2004 provides that, in addition to the 
content of the specif ication documents, tendering entities may establish criteria and weightings for 
bidders, on the basis of matters of high social impact. Matters of high social impact are defined as 
 
211 Information from ChileCompra. Viewed at: https://www.chilecompra.cl/licitacion -comprador/ . 
212 Articles  6 and 41 of the implementing regulations and Articles  18 et seq. of Law  No. 19.886.  
213 The constitutional review is a preliminary, general and compulso ry legal control, which is specific to 
the Chilean system, carried out by the Office of the Comptroller -General of the Republic of Chile in relation to 
the legality and constitutionality of decrees, decrees having force of law and resolutions.  
214 Informatio n from ChileCompra. Viewed at: https://www.chilecompra.cl/bases -tipo/. WT/TPR/S/451/Rev.1  
- 100 - 
  compliance with environmental standards, inclusiveness and the promotion of  smaller enterprises. 
There are also recommendations (directives) from ChileCompra to incorporate sustainability, gender 
and SME promotion criteria into tenders.  
3.229.   Private tendering and direct contracting are exceptional methods to be used following a 
substa ntiated resolution and only in the circumstances defined in the legislation. Private tendering 
is an administrative procedure of a competitive nature, following a substantiated resolution, through 
which the administration invites certain persons to submit proposals, subject to established 
specifications, from which it will select and accept the most suitable (Article 7(b) of Law  No. 19.886). 
Private tendering is permitted, irrespective of the amount, if no interested parties have submitted 
bids in the respe ctive public tenders.  
3.230.   Direct contracting is a non -competitive process, where contractual terms are established 
directly with a supplier, with no prior competitive bidding process. Article 7(c) defines it as "the 
procurement process which, owing to the natu re of the negotiations involved, must be carried out 
without the requirements laid down for public and private tenders or proposals". This procedure 
applies on an exceptional basis, and the procuring entity must justify the circumstances established 
in Law  No. 19.886 and its implementing regulations. In some cases, it requires a minimum of three 
quotations and must be authorized by a substantiated administrative act, for which the head of 
service is responsible. The authority of the public body must prove t he grounds for direct contracting 
and issue a substantiated resolution authorizing it. This justification must be documented and 
evidenced, and published in a timely manner at www.mercadopublico.cl  no later than 24 hours after 
being issued.  
3.231.   Article  8 of Law No.  19.886 and Article 10 of its implementing regulations list and describe 
the grounds for the use of direct contracting. These provisions provide for a total of 
20 circumst ances, including: the absence of submissions from interested parties in previous public 
and private tenders; the continuation of a contract that had to be terminated early; emergency, 
urgency or unforeseen circumstances; sole supplier; suppliers with indus trial or intellectual property, 
or patent holders; extension of, or services relating to, a previously signed contract, only for the 
time taken to launch a new procurement process and provided that the amount involved does not 
exceed 1,000 UTM; replacement  or complementing of, or services incidental to, previously acquired 
infrastructure; strategic consultancies in special consideration of the powers of consultants; 
contracting for reasons of security and confidence in the supplier; if the services in quest ion are of 
a confidential nature or the disclosure thereof would affect national security or interests; if the 
services are provided by foreign legal entities to be rendered outside Chile; and if the cost of the 
tender is disproportionate in relation to th e amount of the contract and the latter does not exceed 
100 UTM.  
3.232.   Framework agreements involve a competitive procurement process conducted by 
ChileCompra for the direct supply to government agencies of standardized goods or services for 
which there is a reg ular and cross -cutting demand. Such agreements are aimed at ensuring 
efficiency and help save on transaction costs. ChileCompra assesses whether it is opportune or 
desirable to conduct a procurement process through framework agreements, which are generally  
used to procure standardized products that are required by all state administration bodies and 
recurrently and regularly used by those bodies. For each framework agreement, ChileCompra, either 
on its own initiative or at the request of one or more governm ent agencies, carries out a public 
tender, selecting suppliers based on what has been set out in the specifications. These selected 
suppliers then list their products in the shop's electronic catalogue, which contains a description of 
the goods and service s offered, their prices, their contracting conditions, and the details of the 
suppliers who were awarded the framework agreement. The tenders are open to all bidders (Chilean 
or foreign natural or legal persons) for the respective goods or services, with m ultiple suppliers being 
selected.  
3.233.   Under framework agreements, the supply and delivery terms, prices and discounts for goods 
and services are set out in advance in the specifications for a certain period of time. On this basis, 
government agencies procure t hrough direct purchase orders in accordance with the terms set out 
in the framework agreements. Framework agreements are administered through an e -shop hosted 
on www.mercadopublico.cl  where public buyers can procure goods and services at the click of a 
button. Government agencies are required to make their purchases under a framework agreement, 
unless they independently obtain more advantageous conditions, or cannot find the pro duct or 
service required under a framework agreement. In such cases, agencies must resort to public WT/TPR/S/451/Rev.1  
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  tendering, private tendering or, in exceptional cases, to direct contracting via the Internet portal 
www.mercado publico.cl . 
3.234.   In 2021, framework agreement transactions amounted to USD  1,512  million, i.e. 10 % of the 
total of all amounts.215 
3.235.   In the pursuit of greater efficiency, ChileCompra promotes the use of coordinated purchases, 
a practice that the authorities believe can save resources and reduce transaction costs. The process 
involves two or more entities joining together to conduct a procurement process where higher 
volumes yield better prices for the State. The decision to partic ipate in a coordinated procurement 
process rests with the institutions, which can decide to coordinate with other government agencies 
(joint coordinated procurement) or mandate ChileCompra to represent them in the process 
(coordinated procurement by mandat e), thereby aggregating demand for a particular product or 
service. In regard to joint coordinated procurement, the coordination between the agencies 
concerned and ChileCompra is formalized through a collaboration agreement, with new agencies 
able to join the agreement via an official commitment letter. In accordance with the Law and its 
implementing regulations, these purchases must be conducted through a competitive process, either 
through a tender or a large framework agreement purchase.216 
3.236.   Compra Ágil  was introduced into the regulations in 2020 in order to facilitate procurement 
in smaller amounts, thereby reducing bureaucracy by easing the formal requirements involved in 
these processes.217 This form of procurement applies to purchases below the threshold of 30  UTM 
(the threshold was increased from 10 to 30  UTM through Decree No.  821 of 21  January  2020). 
Buyers from more than 850  government agencies can use the Compra Ágil  method to make 
purchases below 30  UTM through https://www.mercadopublico.cl /. The authorities believe that this 
new process has led to increased transparency in procurement processes involving smaller amounts 
by opening the market to various sectors and suppliers nationwide. It facilitates competitive, fast 
and flexible access to business opportunities, particularly benefiting MSMEs. This method is believed 
to simplify and standardize the processes involved in smaller -scale public procurement, thereby 
broadening access and reducing the costs involved (estimated at USD  250,000 for a simple tender 
with a specification of between 10 and 30 UTM).218 This purchasing decision does not require an 
administrative act.  
3.237.   ChileCompra keeps a national register of public administration suppliers, an electronic 
register created by Law No.  19.886, where natural or legal persons, whether Chilean, or foreign and 
not domiciled in Chile, can register if they wish to participate in tenders. The register is public. Being 
listed in the register attests to the legality and financial and technical capacity of the suppliers. 
Although not an essential requirement to participate in procurement, when contracting, publi c bodies 
may require bidders to be listed in the national register. According to information provided by the 
authorities, as at March  2023, there were 67,917  registered suppliers. Information on all 
government procurement processes, sorted by entity, is av ailable online on ChileCompra's open data 
web page.219 
3.238.   The Government Procurement Tribunal, set up in 2005, is one of the cornerstones of the 
public procurement system. As a jurisdictional body, the Tribunal is empowered to hear and decide 
on action taken t o challenge any illegal or arbitrary act or omission that may have occurred in 
administrative procurement processes involving public bodies governed by Law  No. 19.886.220 The 
directives, sentences and economic situation of the Tribunal are subject to oversi ght by the Supreme 
Court, although it is not part of the judicial branch. The Tribunal's statutory regime is set out in 
Articles 22 and 23 of Law  No. 19.886. The Tribunal's judges do not deal exclusively with its cases. 
The number of months that the courts , including the Tribunal, operate throughout the year was 
changed by Law  No. 20.774, which eliminated the judicial recess, so since 2015, the Tribunal has 
sat for 12 consecutive months of the year. ChileCompra provides the infrastructure, technical 
 
215 Information from ChileCompra. Viewed at: https://www.chilecompra.cl/convenio -marco -3/. 
216 Information from ChileCompra. Viewed at: https://www.c hilecompra.cl/comprascoordinadas/ . 
217 Viewed at: 
https://www.bcn.cl/leychile/navegar?idNorma=1141363&idParte=10093986 &idVersion=2020 -01-21. 
218 Information from ChileCompra. Viewed at: https://www.chilecompra.cl/compraagil/ . 
219 Information from ChileC ompra. Viewed at: https://datos -abiertos.chilecompra.cl/organismos -
compradores . 
220 Information from the Public Procurement Tribunal. Viewed at: 
https://www.tribunaldecontratacionpublica.cl/ . WT/TPR/S/451/Rev.1  
- 102 - 
  support , and human and material resources needed for the proper functioning of the Tribunal. 
Natural or legal persons with a proven interest in a procurement procedure may submit an 
application to the Tribunal challenging the award within 10 working days from the  time when the 
contested act or omission became known or was published. After the Tribunal has agreed to hear 
the challenge, it may decree the suspension of the procurement procedure. The Tribunal 
subsequently issues a final ruling on the legality or arbit rariness of the act or omission challenged 
and orders the necessary corrective measures. An appeal may be made against the Tribunal's rulings 
to the Appeals Court in Santiago.  
3.239.   The MOP organic law (DFL  No. 850 of 1997) and the Regulations on Public Works Co ntracts 
(Supreme Decree No.  75 of 2004, as amended by Decree No.  810 of 2008) set out the rules to be 
followed for public works contracts. The Law on Public Works Concessions (Supreme Decree No.  900 
of 1996 of the MOP) and its implementing regulations (DS No. 956 of 1997) regulate the 
procurement of public works under the system of concessions to private entities.221 However, Chile 
does not have a unified regulatory framework that fully regulates the contracting and awarding 
process for public works contract s. The procurement processes of MOP and MINVU are governed by 
their own special regulations, as described above, whereas public works tenders of bodies other than 
these ministries, such as municipalities and health services, do not have their own special r egulations 
and are governed by Law  No. 19.886 and its implementing regulations.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.240.   Since its last review, Chile has introduced  significant legislative reforms aimed at 
strengthening its intellectual property system , and a ligning it with international commitments and 
international best practices. In particular, in 2021, substantial reforms were introduced to industrial 
property legislation in order to update it; these changes came into force on 9  May 2022 (see  below). 
As a result of Chile's commitments under bilateral agreements with various trading partners, 
protection of intellectual property rights (IPRs) in Chile in some cases goes beyond the obligations 
of the Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS Agreement), for 
instance, as regards copyright and industrial property rights.  
3.241.   Chile is a member of the World Intellectual Property Organization (WIPO) and is a signatory 
to most WIPO -administered treaties. It is also a member of the Internat ional Union for the Protection 
of New Varieties of Plants (UPOV). Since its previous trade policy review in 2015, Chile has acceded 
to the Madrid Protocol (4  April 2022) and ratified the Marrakesh Treaty to Facilitate Access to 
Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled 
(10 May 2016) (Table  3.18).  
Table 3.18 WIPO treaties to which Chile is party, 2023  
Treaty  Instrument  In force  
Rome Convention  Ratification: 5  June 1974 5 September  1974 
Phonograms Convention  Accession: 15  December  1976 24 March  1977 
Berne Convention  Accession: 9  April 1970 5 June 1970 
Brussels Convention  Accession: 8  March  2011 8 June 2011 
Paris Convention  Accession: 13  March  1991 14 June 1991 
WIPO Convention  Accession: 25  March  1975 25 June 1975 
UPOV Convention  Accession: 5  December  1995 5 January  1996 
Madrid Protocol  Accession: 4  April 2022 4 July 2022 
Beijing Treaty on Audiovisual Performances  Ratification: 22 June 2015 28 April 2020 
Budapest Treaty  Accession: 5  May 2011 5 August  2011 
Patent Cooperation Treaty  Accession: 2  March  2009 2 June 2009 
Marrakesh Treaty for Visually Impaired 
Persons  Ratification: 10  May 2016 30 September  2016 
Nairobi Treaty  Ratification: 14  November  1983 14 December  1983 
WIPO Copyright Treaty  Ratification: 11  April 2001 6 March  2002 
 
221 MOP's rules can be viewed at: https://www.mop.gob.cl/.  WT/TPR/S/451/Rev.1  
- 103 - 
  Treaty  Instrument  In force  
WIPO Performances and Phonograms Treaty  Ratification: 11  April 2001 20 May 2002 
Trademark Law Treaty  Accession: 5  May 2011 5 August  2011 
Source:  WIPO. Viewed at: 
https://www.wipo.int/wipolex/en/treaties/ShowResults?start_year=ANY&end_year= ANY&search_wh
at=C&country_id=36C&treaty_all=ALL . 
3.242.   The creation and implementation of intellectual property policies, as well as the granting, 
recognition, registration and administration of various intellectual property r ights is the responsibility 
of a number of specialized state administration agencies. These include the National Industrial 
Property Institute (INAPI) of the Ministry of Economic Affairs; the Seeds Department of the 
Agriculture and Livestock Service (SAG) and the Office for Agricultural Studies and Policy 
Development (ODEPA) of the Ministry of Agriculture; the Public Health Institute (ISP) of the Ministry 
of Health; and the Copyright Unit, Cultural Heritage Service (SMPC) and National Council of Culture, 
the Arts and Heritage of the Ministry of Culture, the Arts and Heritage (MINCAP) (Table  3.19).  
Table 3.19 Intellectual property rights and administering institutions  
 
INAPI  MINAGRI  
SAG 
ODEPA  MINSAL  
ISP MINCAP  
SMPC  Council  of 
Culture  
Patents for inventions  X     
Utility models  X     
Layout designs of integrated circuits  X     
Copyright     
X X 
Plant varieties   
X    
Trademarks  X     
Appellations of origin  X X    
Geographical indications  X X    
Industrial drawings and designs  X     
Trade secrets  X     
Undisclosed information  X X X   
Traditional knowledge and genetic 
resources   
X   
X 
Source:  INAPI. Viewed at: 
https://www.inapi.cl/propiedad -intelectual -e-industrial/para -informarse/derechos -de-propiedad -intel
ectual -y-las-instituciones -que-los-administran . 
3.243.   The National Industrial Property Institute (INAPI ) – established by Law  No. 20.254, 
published on 14  April 2008 and in force since 2009 – is the autonomous, technical and legal body 
responsible for the administration and management of industrial property services (trademarks, 
patents, utility models, indu strial drawings and designs, integrated circuits, geographical indications, 
appellations of origin, trade secrets and undisclosed information). INAPI is the body responsible for 
handling all administrative matters relating to the recognition and validity o f the registration 
protection granted by law to industrial property. In this respect, it is responsible for the registration 
and promotion of industrial property rights and maintains a database where applications and/or 
registrations of trademarks and pate nts may be viewed.222 INAPI is also tasked with promoting 
industrial property protection and distributing technological resources and the information it has at 
its disposal. INAPI also regulates all aspects pertaining to industrial and business secrets and 
undisclosed information, which are not subject to a registration system, as well as traditional 
knowledge and genetic resources.  
3.244.   INAPI is subject to oversight by the President of the Republic, through the Ministry of 
Economic Affairs, Development and Touri sm. It is also the advisory and consultative body to the 
President of the Republic on matters related to industrial property and is responsible for, inter alia , 
proposing, through the Ministry of Economic Affairs, Chile's accession to international treatie s on 
industrial property. INAPI's mission is to strengthen the national industrial property system by 
protecting rights, disseminating knowledge and promoting a balanced and comprehensive view of 
industrial property, in order to contribute to the economic and social development of Chile. INAPI 
incorporates considerations relating to environmental impact (energy consumption, recycling, 
 
222 INAPI's database can be consulted at: https://ion.inapi.cl/Patente/ConsultaAvanzadaPatentes.aspx  
(patents); https://ion.inapi.cl/Marca/BuscarMarca.aspx  (trademarks).  WT/TPR/S/451/Rev.1  
- 104 - 
  carbon footprint measurement), inclusion measures and the timely payment of suppliers in all its 
processes.223 
3.245.   In regards to copyright and related rights, it is the responsibility of the Ministry of Culture, 
the Arts and Heritage, created by Law No.  21.045 of 3  November  2017, to promote the respect and 
protection of copyright and related rights and the enforcement thereof in all  areas  of cultural 
relevance, while also fostering their dissemination. One of the principles governing the Law is respect 
for the rights of creators and culturists, and specific reference is made to promoting the rights of 
creators in the field of intelle ctual property (Article 1.7). Accordingly, the Copyright Unit, attached 
to the Under -Secretariat for Culture and the Arts, began operating in 2019, assuming the functions 
that Law  No. 21.045 grants to the Ministry in the area of copyright. The Department o f Intellectual 
Rights (DDI), which belongs to the National Cultural Heritage Service of the Ministry of Culture, the 
Arts and Heritage, maintains the Intellectual Property Register and is the body responsible for 
following up on these issues. The DDI's mis sion is to manage the state registration system for 
copyright and related rights, to offer services to the public and respond to queries from users 
regarding all matters pertaining to registration and other matters within its remit, and to conserve 
the fix ation of the intellectual productions that make up its collections, thereby contributing to the 
formation, development and sustainability of a national culture of respect for intellectual property 
rights relating to literary, artistic and scientific works.224 
3.246.   SAG is one of bodies responsible for monitoring compliance in respect of matters such as 
the protection of new plant varieties, the authorization of agrochemicals and of medicines exclusively 
for veterinary use, information on which has been protected a s undisclosed information, and the 
regulation of the appellations of origin Pisco, Pajarete and Vino Asoleado, and those referring to 
viticultural zoning. SAG's Department of Seeds and Plants deals with applications for the protection 
of new plant varietie s, while its New Plant Variety Assessment Committee grants registration for 
them. SAG's Department for the Regulation and Control of Agroforestry Products and Inputs is 
responsible for registering agrochemicals, information on which has been protected as u ndisclosed 
information.  
3.247.   The Public Health Institute (ISP) keeps the register of medicines, and is responsible for the 
safekeeping of information that has been protected as undisclosed information.  
3.248.   The Interministerial Intellectual Property Committee is the  informal mechanism for the 
coordination and exchange of information between different public sector entities that deal with 
intellectual property. The Committee is headed by the Ministry of Foreign Affairs and is composed of 
various agencies and/or depart ments of the Ministries of Economic Affairs, Health, Agriculture, and 
Culture, the Arts and Heritage, the ISP and the National Customs Service. The Committee 
coordinates the national position in international forums and facilitates the implementation of th e 
international commitments undertaken by Chile.  
3.249.   INAPI is a body of first instance in opposition proceedings involving applications for 
trademarks, patents, utility models, industrial drawings and designs, trade secrets, the protection 
of undisclosed infor mation, integrated circuits, geographical indications and appellations of origin, 
the cancellation  of the aforementioned rights , and registration transfers, as well as any other claim 
relating to the validity or effects of the protection of the rights refe rred to in that legal body and 
brought by parties interested in such matters.  
3.250.   The Industrial Property Tribunal, a special tribunal established by Article  17 bis C of Law 
No. 19.039 on industrial property, is the court of second instance responsible for hea ring appeals 
against "final or interlocutory decisions" issued by the National Director of INAPI, as a court of first 
instance.225 The Industrial Property Tribunal also hears in second -instance disputes relating to 
oppositions and cancellations  concerning p lant varieties registered with SAG. Appeals against the 
Tribunal's rulings may be made to the Supreme Court. Infringements of rights relating to industrial 
property, intellectual property and registered plant varieties are also brought before the ordinary 
civil or criminal courts. The Tribunal is governed by Law No.  19.039, its implementing regulations 
and amendments thereto. The reasons are given in accordance with the rules contained in the Code 
 
223 INAPI. Viewed at: https://www .inapi.cl/acerca -de/inapi . 
224 Information provided by the DDI. Viewed at: https://www.propiedadintelectual.gob.cl/ . 
225 INAPI. Viewed  at: https://www.inapi.cl/propiedad -intelectual -e-industrial/para -informarse/tribunal -
de-propiedad -industrial . WT/TPR/S/451/Rev.1  
- 105 - 
  of Civil Procedure. The Tribunal is composed of six members and four alternates, appointed by the 
President of the Republic from a short list proposed by the Supreme Court. Four of the selected 
members and two of the alternates are required to have specialist knowledge of industrial property. 
The President of the T ribunal is elected by the members of the Tribunal. The members and alternate 
members of the Tribunal serve for three years, and may be appointed for successive periods.226 
3.251.   The trade agreements signed by Chile generally include special chapters on intellectu al 
property.227 Some contain provisions on geographical indications or enforcement measures.228 Chile 
has also signed agreements with the European Union on trade in wines and spirits, which are 
annexed to its trade agreement. Both parties have undertaken to provide protection for the 
geographical indications listed in the annexes to the agreements and to refrain from using certain 
generic indications and trademarks that are identical or similar to those of the other party.  
3.252.   Chile has notified the WTO of the te xts of its intellectual property laws and regulations, 
as well as the amendments thereto. However, the most recent notifications were in 2009.229 Since 
then, no new notifications have been made. For example, the significant changes adopted in Chile's 
indust rial property legislation in 2021, which came into effect in 2022, have not been notified to the 
TRIPS  Council; nor have previous amendments been notified.230 During the review period, Chile 
continued to participate in the work of the TRIPS Council and issu ed several joint communications 
with other WTO Members. These statements focus, in particular, on matters such as the role of 
intellectual property in the financing of startups; intellectual property, innovation and 
microfinancing; women and intellectual p roperty; intellectual property and innovation; intellectual 
property for investment and financing; and making MSMEs competitive in green tech.231 
3.253.   Chile's legislation provides for the international exhaustion of rights. The country therefore 
allows parallel imports for all industrial and intellectual property rights. Patents do not give the right 
to prevent third parties from marketing the product covered by the patent if they legitimately 
acquired it after the product was legally introduced into tra de in any country by the patent holder or 
by a third party, with their consent. Likewise, the registration of a trademark does not authorize the 
holder to prohibit third parties from using it for products legitimately marketed in any country by 
the holder or with their explicit consent. As regards copyright and related rights, the legislation 
provides that the first sale or other transfer of ownership in Chile or abroad exhausts the right of 
national and international distribution in respect of the original  or the transferred copy of the 
protected work.  
3.3.7.2   Overall legal framework  
3.254.   The WTO TRIPS Agreement was incorporated into Chile's legislation by Ministry of Foreign 
Affairs Supreme Decree No.  16 of 5  January  1995. Chile's legislation covers all the categories of 
intellectual property provided for in the TRIPS Agreement, as well as areas negotiated within the 
framework of bilateral agreements. During the review period, Chile made subsequent amendments 
to its industrial property legislation.  
 
226 INAPI. Viewed at: https://www.inapi.cl/propiedad -intelectual -e-industrial/para -informarse/tribunal -
de-propiedad -industrial . 
227 This applies to the Association Agreement with the European Union; the agreement with the 
European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland); the free trade agreements 
with Mexico, Türkiye, U ruguay, Australia, the Republic of Korea and the United States; the economic 
partnership with the P4 (Brunei  Darussalam, New  Zealand and Singapore); the Economic Complementarity 
Agreement with  Cuba; the Economic Partnership Agreement with Japan; and the CPTPP.  
228 This applies to the agreements with Canada; Central America; China; Hong Kong, China; Malaysia; 
Panama; Viet Nam; Thailand; Indonesia; the United Kingdom; and the Digital Economy Partnership Agreement 
(DEPA).  
229 WTO documents IP/N/1/CHL/I/7 of 7  September  2009; IP/N/1/CHL/I/8 of 7  September  2009; and 
IP/N/1/CHL/I/9 of 7  September  2009.  
230 For example, amendments to Law  No. 17.336 on intellectual property (copyright) by Law  No. 20.435 
of 4 May 2010; Supreme Decree No.  425 of 24  May 2011; Supreme Decree No.  277 of 28  October  2013; and 
Law No.  20.750 of 29  May 2014.  
231 WTO documents IP/C/W/692 of 29  September  2022; IP/C/W/686 of 25  February  2022; IP/C/W/685, 
IP/C/W/685/Add.1, IP/C/W/685/Add.2 of 14  October  2021; IP/C/W/679 of 27  May 2021; and IP/C/W/675 of 
26 February  2021.  WT/TPR/S/451/Rev.1  
- 106 - 
  3.3.7.3   Industrial property  
3.3.7.3.1   Legislation  
3.255.   The principal legislation on industrial property can be found in Industrial Property 
Law No. 19.039, which was revised, coordinated and consolidated in Decree with Force of Law (DFL) 
No. 4 of 2022, published on 6  August  2022, and its implementin g regulations (Decree No.  236 
of 2005), which were amended by Decree No.  82 of 2021 approving the regulations implementing 
Industrial Property Law No.  19.039 and published on 9  May 2022.  
3.256.   The most recent amendment to the Law was made through Law No.  21.355 of 5  July 2021, 
also known as the INAPI Short Law. This amendment entered into force on 9  May 2022, through the 
publication, also in May  2022, of Decree No.  82 containing the implementing  regulations. All of the 
amendments are included in DFL No.  4. 
3.257.   The INAPI Short Law introduced major amendments to the Industrial Property Law; they 
relate mainly to the introduction of provisional patent applications, exceptions to  patentability , the 
expiration of unused trademarks, the registration of trademarks for industrial property and a broader 
definition of what constitutes a trade secret, as well as changes to the regulations applicable to 
geographical indications and appellations of origin. In its summary concerning the amendments to 
the Industrial Property Law and to Law No.  20.254 establishing INAPI, the Ministry of Economic 
Affairs, Development and Tourism noted that the changes had been made "with a view to making 
adjustments to the industrial p roperty system through the introduction of measures that will 
contribute to investment and production, while fostering innovation and entrepreneurship" and that 
"in this way, the provisions are in place to better protect and enforce the industrial property  rights 
of users of the system, providing them with more streamlined procedures while also equipping INAPI 
with more efficient and effective granting mechanisms".232 A summary of the main changes 
introduced through Law No.  21.355 amending Industrial Propert y Law No.  19.039 and 
Law No. 20.254 establishing INAPI, enacted on 22  June 2021 and published on 5  July 2021, is 
provided in Box  3.2. 
Box 3.2 Main points of Law No.  21.355  
The key amendments set out in Law No.  21.355 are as follows:  
(1) Notifications  
The Law stipulates that all notifications relating to the granting of industrial property rights, oppositions, 
cancellations and any other matter brought before INAPI will be issued through the official daily state ment.a 
It also authorizes notifications of opposition to a registration application to be issued via the electronic 
channel selected by the applicant.  
To be able to receive notification of an application to cancel a registration or declare it invalid, fore ign 
applicants must have a domicile in Chile, failing which their agent or representative will be notified.  
The Industrial Property Tribunal issues notifications through the official daily statement.  
(2) Payment of fees  
INAPI  is now authorized to issue a filing date for a patent application, even when payment of the filing fee 
has not been received, subject to the conditions and penalties provided for by the Law.  
An additional fee is charged for patent applications exceeding 80 pages. It is charged on every 20 extra 
pages or part thereof.  
Rights holders can now opt to pay fees on an annual basis during the second 10 -year term of the patent, 
during the second five -year term for utility models and layout designs and topographies of integrated 
circuits, and during the second and third five -year terms for industrial drawings and designs.  
The Law stipulates that fees already paid cannot be refunded.  
(3) Registration, use and other aspects of commercial trademarks  
It is no longer possible to register names of commercial or industrial establishments as trademarks; this 
concept has been replaced with Class 35 (services involving business management, operation, organization 
and administration of a commercial or industrial enterprise, as well as advertising, marketing and 
 
232 Law No.  21.355 amending Industrial Property Law No.  19.039 and Law No.  20.254 establishing 
INAPI. Summary. Viewed at: https://www.bcn.cl/leychile/ navegar?idNorma=1162253 . WT/TPR/S/451/Rev.1  
- 107 - 
  promotional services) and Class 40 (services rendered by the mechanical or chemical processing, 
transformation or production of objects or inorganic or organic substances) trademarks.  
Other signs, such as smells and non -traditional, three -dimensional forms, can now be registered as 
trademarks.  
The regulations governing collective and certification marks have also been updated.  
The Law now stipulates that the rights conferred on holders of registered trade marks do not in any way 
prevent another person from exercising the right to use, in the course of their business operations, their 
name or pseudonym or the name of their predecessor in business, except where the name is used in such 
a manner as to mislead or confuse the public.  
The time frame and procedure for renewing commercial trademarks has also been amended.  
The Law now includes grounds for the total or partial cancellation of a registered trademark, such as its real 
and effective non -use, under cert ain circumstances and subject to certain conditions.  
Trademark counterfeiting is now punishable with a short prison sentence. In addition, where trademark 
counterfeiting has occurred, damages may be replaced with a one -off compensatory amount determined by 
the court based on the seriousness of the infringement but not exceeding 2,000  UTM per infringement 
(USD 158,000).  
(4) Patents for inventions  
A provisional patent application has been introduced, with the provisional patent recognized by IN API for a 
12-month period, subject to payment of the corresponding fee.  
Exemptions have been introduced for invention patents. The patent does not entitle the owner to prevent 
third parties from importing, exporting, manufacturing, producing or using the patented material for the 
sole purpose of obtaining the sanitary registration or authorization for a pharmaceutical, agrochemical or 
other product. The Law also sets out activities and situations that constitute exemptions to the rights 
conferred by patent s. 
The Law now includes the option of taking patent usurpation action, entitling legitimate patent owners to 
bring a request before a civil judge for the transfer of the patent registration and the payment of damages.  
A time limit has also been set for f iling applications for supplementary patent protection in the circumstances 
and conditions laid down in the Law; the term of the supplementary protection cannot exceed five years.  
The processing of industrial design registrations has been streamlined, and  the term of registration has been 
extended from 10 to 15 years.  
(5) Service inventions  
The Law stipulates that disputes relating to these inventions must be resolved promptly and briefly by the 
ordinary courts and are no longer brought before and settle d by the Industrial Property Tribunal.  
(6) Trade secrets  
The definition has been broadened, provided that certain requirements are also met.  
(7) Geographical indications and appellations of origin  
Changes have been made to the regulations applicable to geographical indications and appellations of origin.  
(8) INAPI powers  
INAPI is now authorized to raise funds through national and international agreements.  
In judicial matters, INAPI can now be recognized as a party in appeals against the final rulings handed down 
in proceedings brought before INAPI.  
(9) Enforcement  
Pre-established damages are now provided for in the event of trademark counterfeiting, in keeping with 
Chile's international commitments (Chile –United States Free Trade Agreement), and trademark 
counterfeiting is now a criminal offence.  
a Article  50 of the Code of Civil Procedure defines the official daily statement ( estado diario ) as the 
form of notification for certain judicial rulings; it is contained in an electronic  document that is 
posted temporarily on the judiciary's website.  
Source:  Law No.  21.355 amending Industrial Property Law No.  19.039 and Law No.  20.254 establishing 
INAPI. Summary. Viewed at: https://www.bcn.cl/leychile/navegar?idNorma=1162253 . WT/TPR/S/451/Rev.1  
- 108 - 
  3.258.   As illustrated in Box 3.2, under the reforms to Law No.  19.039, various operational and 
procedural improvements have been made to the industrial property system: notifications can now 
be issued electronically; the fee p ayment schedule for registrations managed by INAPI has been 
modified; a filing date can now be issued without immediate payment of the application fee being 
required; the fees for maintaining the patent for additional 10 - or five -year terms can be paid eit her 
all at once (previous system) or on an annual basis; and provisional patent applications can be filed 
by individual universities and inventors. In addition, application of the standard set out in the Patent 
Cooperation Treaty (PCT) was extended, and th e legal basis was established for the use of the 
WIPO  Digital Access Service (DAS) for the recognition of international certification.  
3.259.   One key reform is that it is now possible to register additional signs, such as olfactory, 
three -dimensional, holographic  and position marks, as trademarks. In addition, trademarks in 
connection with commercial and industrial establishments can no longer be registered; trademarks 
can now be rendered invalid if they are not used; and the time limit for filing a request to ren ew a 
trademark has been modified. Other key reforms concerning industrial drawings and designs are the 
extension of the term of registration from 10 to 15 years and the introduction of a certificate of 
deposit, which can be issued without the application h aving to go through the substantive 
examination procedure. Other reforms include: the explicit recognition of certain exemptions to the 
rights of trademark and patent owners specifying certain uses by third parties that are not deemed 
infringements; improv ements to the regulations applicable to collective and certification marks, 
trade secrets and geographical indications and appellations of origin; the setting of a maximum term 
for the supplementary protection of patents; and the introduction of patent usu rpation action. 
Another major change is that disputes relating to service inventions are now under the jurisdiction 
of the ordinary courts, whereas before they were heard by the Industrial Property Tribunal. In terms 
of enforcement, pre -established damages  have been established for trademark counterfeiting, which 
has also become a criminal offence.  
3.260.   Under the reforms brought in by Law No.  20.254, INAPI can, in exceptional circumstances, 
be recognized as a party in appeals against the final rulings handed dow n in INAPI  proceedings. 
INAPI's powers to raise funds through national and international agreements have also been 
expanded.  
3.261.   In 2012, INAPI was designated by WIPO as the International Searching Authority 
(ISA)/International Preliminary Examination Authorit y (IPEA) for the purposes of the PCT. It 
commenced its activities as an ISA/IPEA in October  2014.233 INAPI is a member of the 
Latin American Intellectual Property and Gender Network launched in June  2021. The aim of the 
Network is to promote and position in tellectual property in order to bridge gaps and achieve gender 
equity, by facilitating the sharing of good practices and experiences among national intellectual 
property offices in the region, thereby enabling the development and strengthening of capacitie s in 
this area, which in turn will benefit both the offices themselves and those using their services.234 
3.3.7.3.2   Patents, utility models and industrial designs  
3.262.   Patents, utility models and industrial designs are governed by Industrial Property 
Law No. 19.039, which  was revised, coordinated and consolidated in DFL No.  4 of 2022. A patent is 
defined as any product or process that is new, involves an inventive step and has industrial 
applications. The protection lasts for 20 years from the filing date. The owner may ap ply for a 
supplementary period of protection if there were unjustified administrative delays in the patent 
granting process, and if the patent was granted more than five years after the filing date or 
three  years after the examination request, whichever is  later. Supplementary protection can only be 
granted for the length of the unjustified administrative delay and for a period of no more than 
five years; it is granted by the Industrial Property Tribunal. Provisional patents can be granted for 
12 months in cases where a person has an invention but does not yet meet all of the requirements 
for filing a patent application with INAPI.  
3.263.   The following cannot be patented: scientific theories, business plans, and mathematical, 
surgical, therapeutic or diagnostic met hods; plants and animals (except microorganisms) and 
 
233 Information from INAPI. Viewed at: https://www.inapi.cl/pct . 
234 INAPI (2022), INAPI report 2022, Fostering innovation a nd entrepreneurship through industrial 
property . Viewed at: https://www.inapi.cl/docs/default -source/2022/cuenta -publica/reporte -
inapi/reporte_inapi_2022 -versi%C3%B3n -final-para-publicar.pdf?sfvrsn=31b77076_2 . WT/TPR/S/451/Rev.1  
- 109 - 
  essentially biological processes for the production of plants and animals (other than microbiological 
processes); and parts of living beings as encountered in nature and natural biological processes and 
materials. Protection is not granted if an invention is contrary to public order, security, morality, the 
health of persons, animals or plants, or the environment.  
3.264.   The Law defines utility models as instruments, devices, tools, appliances and objects or par ts 
of objects from whose shape or structure a claim can be made, in both its external appearance and 
its function, and provided that some sort of utility is created, which is to say that it brings a previously 
non-existent benefit, advantage or technical e ffect to the area of use for which it is intended. The 
utility model must be new and have industrial applications. Protection is granted for 10 years from 
the filing date and is not renewable. The same exemptions apply as for patents.  
3.265.   Industrial drawings a nd designs are protected for up to 15 years from the filing date. 
Industrial designs are any three -dimensional form, coloured or not, and any industrial or craft 
product that serves as a pattern for the manufacture of others like it and is distinguished fr om similar 
products either by its form, geometrical shape or decoration, or a combination of these, insofar as 
those characteristics give it a special appearance, including packaging. Industrial drawings are any 
arrangements, collections or combinations of  figures, lines or colours developed on a plan or diagram 
for incorporation in an industrial product for the purpose of decoration and to give said product a 
new appearance, including generic prints, fabrics or laminates. A deposit system is in place that 
provides reduced protection without the need for a substantive examination of the application until 
requested by the applicant or a third party. Designs or drawings whose appearance is dictated 
entirely by technical or functional considerations, with no in put from the designer, cannot be 
registered. Articles of clothing cannot be registered as industrial designs.  
3.266.   Since its previous review, Chile has introduced major changes to Law No.  19.039 that affect 
the patent regime.235 One such amendment is the introdu ction of a provisional patent, which makes 
it possible to apply for a patent without meeting all of the requirements of the standard patent 
application process; the provisional patent gives the holder priority in applying for a standard patent 
for the 12 m onths following the filing date. The provisional patent application does not require the 
submission of claims, but rather a clear and complete description in English or Spanish of the 
invention, and a drawing, if applicable. The provisional patent can be u sed as the basis for a standard 
domestic patent application or for an application through the PCT system. The reforms also cover 
patent usurpation, allowing the legitimate owner of a patent to request, throughout the registered 
patent's period of validity,  the recovery of the right associated with their invention through the 
ordinary civil courts. In this case, ownership of the patent registration can be transferred to the 
legitimate owner, and damages can be claimed. Additional restrictions have been intro duced for the 
supplementary protection afforded in the event of delays in the granting process: the term for 
applying for such protection has been reduced from six months to 60 days from the patent approval 
date, and the protection can be extended for no m ore than five years, regardless of the length of 
the unjustified delay.  
3.267.   For industrial drawings and designs, the reform extends the term of legal protection to a 
maximum of 15 years from the filing date. After the end of the first five -year registration pe riod, the 
owner can also now opt to pay the registration maintenance fee on an annual basis, with the 
associated right lasting for as many years as the payment is made, up to a maximum of 10 years 
following the initial five -year period.  
3.268.   Applications for pa tents for inventions, utility models, industrial designs, industrial drawings 
or layout designs or topographies of integrated circuits are submitted online via the INAPI  website, 
along with the technical documentation required for each application type and  payment of 1  UTM. 
In exceptional cases where the applicant is unable to access INAPI's Internet portal, the application 
can be filed in person at the user support office, using Form FPI  40 "Patent Registration Application", 
together with the relevant tech nical documentation. Once an application has been filed, INAPI will 
carry out checks and a preliminary examination. If there are observations, the applicant must 
respond within 60 working days. If there are no observations, the application is accepted and must 
be published by the applicant along with the application extract issued by INAPI. During the 
 
235 DFL No.  4 of 2022, enacted on 30  June 2022 and published on 6  August  2022, and its implementing 
regulations (Decree No.  236 of 2005), which were amended by Decree No.  82 of 2021 approving the 
regulations implementing Industrial Property Law No.  19.039, enacted on 29  October  2021 and published on 
9 May 2022, revise, coordinate and consolidate Law No.  19.03 9. WT/TPR/S/451/Rev.1  
- 110 - 
  preliminary examination, the applicant can request to suspend national publication of the application 
for up to 18 months for invention patents and utility mo dels and up to six months for industrial 
drawings and designs. The request must be made on the grounds that publishing the application in 
Chile would damage the applicant's legitimate interests abroad. Once the deadline has passed, INAPI 
orders the applica tion extract to be published in the Official Journal. Within 45 days of publication, 
any interested party may lodge an objection to the application, on the grounds that the application 
does not comply with one or several patentability requirements; the pro cess then becomes a litigious 
procedure. If no objection has been filed at the end of the 45 -day period, INAPI will decide on the 
amount of the expertise fee, which must be paid within 60 working days, with the applicant providing 
proof of payment on the I NAPI website.236 
3.269.   Compulsory licences can be granted under certain circumstances. In the case of patents, a 
compulsory licence may be granted if the patent's owner has been found guilty of anti -competitive 
conduct or practices pursuant to a decision by the Competition Tribunal; for reasons of public health, 
national security, non -commercial public use, national emergency or other extremely urgent 
situations; or if the compulsory licence is needed to work a subsequent patent that cannot be worked 
without infringing a prior patent, subject to certain conditions.237 As at July  2023,  no compulsory 
licences have been requested or granted in Chile in any technological or industrial sector.  
3.270.   In 2016, INAPI signed Patent Prosecution Highway (PPH) agreements with th e patent offices 
of members of the Cooperation System on Management Information and Industrial Property 
(PROSUR) and the Pacific Alliance, as well as with Canada. These agreements provide for a fast track 
procedure when evaluating a patent application that  has already been submitted and approved in 
another country. Agreements are currently in place with the Pacific Alliance countries (Chile, 
Colombia, Mexico and Peru), China and the countries that make up the Global PPH.238 In 2021, 
61 patent applications we re filed with INAPI under one of INAPI's PPH agreements.  
3.271.   During the period 2016 –22, there was a significant increase in the number of applications 
for trademarks and industrial drawings and designs, while the average number of patent applications 
declined.  On average, trademark applications recorded the greatest increase, up 24 % in 2022 
compared with 2015 (Table 3.20); however, they rose by more than 50 % over 2020 (+40 %) 
and 2021 (+62 %) combined, which, according to the authorities, corresponds to the perio d when 
there were COVID -19-related restrictions on people's movement in the country. In 2021, 89 % of 
the patent applications received were submitted by non -residents. The highest concentrations of 
patent applications were in the following fields in 2021: p harmaceuticals (30.7 %), biotechnology 
(17.4 %), processed organic products (15.3 %), materials chemistry (10.5 %), other special 
machinery (7.3 %), chemical engineering (7.3 %), civil engineering (5.8 %), materials handling 
(5.6%), food chemistry (5.4 %), materia ls, metallurgy (5.0 %).239 
Table 3.20 Applications for industrial property rights received by INAPI, 2015 –22 
Year/IPR  2015  2016  2017  2018  2019  2020  2021  2022  2016–22 
Patents  3,271  2,907  2,891  3,098  3,239  2,813  3,082  3,184  3,131  
Utility models  106 110 145 141 136 157 113 116 131 
Trademarks  42,699  45,024  45,059  47,404  46,987  60,001  69,180  56,377  52,862  
Industrial  
drawings/  
designs  405 401 438 602 528 459 388 534 479 
Source:  INAPI  statistics. Viewed at: https://www.inapi.cl/estadisticas/patentes . 
 
236 INAPI (2023), Guía para Usuarios Tramitación y Conceptos Prácticos sobre el Sistema de Propiedad 
Industrial en Chile en el Marco de la Implementación de la Ley N° 21.355 . Update: January  2023. Viewed at: 
https://www.inapi.cl/docs/default -source/2023/centro -de-documentacion/libros -y-
reportes/guia_para_usuarios_inapi_2023.pdf?sfvrsn=f99081b9_2 . 
237 Article  51 of Law No.  19.039 (revised, coordinated and consolidated text).  
238 The offices making up the Global PPH are those in Australia, Austria, Canada, Chile, Colombia, 
Denmark, Estonia, Finland, Germany, Hungary, Iceland, Israel, Japan, the Republic of Korea, New Zealand, 
Norway, Peru, Poland, Portugal, the Russian Federation, Singapore, Spain, Sweden, the United Kingdom and 
the United States, as well as the Visegrad Patent Institute (Czech Republic, Hungary, Poland and Slovakia) and 
the Nordic Patent Institute (Denmark, Iceland and Norway). Further information available from: 
https://www.jpo.go.jp/e/toppage/pph -portal/globalpph.html . 
239 INAPI (2022), INAPI report 2022, Fostering innovation and entrepreneurship through in dustrial 
property . Viewed at: https://www.inapi.cl/docs/default -source/2022/cuenta -publica/re porte -
inapi/reporte_inapi_2022 -versi%C3%B3n -final-para-publicar.pdf?sfvrsn=31b77076_2 . WT/TPR/S/451/Rev.1  
- 111 - 
  3.3.7.3.3   Layout designs or topographies of integrated circuits  
3.272.   Layout designs or topographies of integ rated circuits are governed by Industrial Property 
Law No.  19.039, which was revised in DLF No.  4 of 2022. The Law protects the three -dimensional 
arrangement of elements in layout designs or topographies of integrated circuits, designed for their 
manufactu re, provided they are original. Protection is granted for 10 years from the filing date or 
the date of the first commercial exploitation in any part of the world; it is not renewable. The right 
does not cover reproductions of layout designs made for privat e purposes or for evaluation, analysis, 
research or teaching; acts of commercial exploitation of original layout designs created as a result 
of the evaluation or analysis of a protected layout design; acts of commercial exploitation of any 
article incorpor ating an unlawfully reproduced integrated circuit if the person carrying out such acts 
did not know that it incorporated an unlawfully reproduced integrated circuit.  
3.3.7.3.4   Trademarks  
3.273.   In Chile, trademarks are governed primarily by Industrial Property Law No.  19.039, which 
was revised in DFL No.  4 of 2022, and its implementing regulations. Trademark protection is granted 
to any sign – such as words (including names of persons, letters and numbers), graphic elements 
(such as images, graphics, symbols and colour comb inations), sounds, smells and three -dimensional 
forms – used to distinguish products or services, and any combination of these signs.240 Promotional 
and advertising slogans that are attached or relate to a trademarked product or service are also 
included. T he nature of the product or service has no impact on the registration of its trademark. 
Collective and certification marks are also protected. The following cannot be registered as 
trademarks: coats of arms; flags; names of States, international organizati ons or public government 
services; names of plant varieties; trademarks that are identical or similar to well -known trademarks 
registered in Chile or abroad; trademarks that are intended to mislead or deceive with respect to 
the origin, quality or type of product or service; registered geographical indications and appellations 
of origin; and distinctive signs that are contrary to public order or morality.  
3.274.   A trademark must be registered for it to be protected. Protection is granted for 10 years  
from the regi stration date; it can be renewed for further 10 -year periods at the request of the 
trademark owner. Renewal must be requested in the six months before or after the protection 
expires. The trademark will expire if, five years after the date of entry in the register, it has not been 
subject to real and effective use within the national territory by its owner or by third parties with the 
owner's consent, or if its use has been suspended for that same period. Cancellation of the trademark 
may also be requested if the trademark has been genericized. In this case, the cancellation cannot 
be initiated ex officio  but must be requested by an interested person. The regulations governing the 
expiry of trademarks apply to trademarks registered on or after 9  May 2022. Fo r trademarks 
registered prior to that date, the regulations will come into effect five years after the trademark's 
first renewal after the aforementioned date.  
3.275.   The amendments made to Law No.  19.039 in 2021 through Law No.  21.355 of 5  July 2021, 
or the INAP I Short Law, introduced several changes to trademark legislation. The amendments 
entered into force on 9  May 2022, with the publication of Decree No.  82 of May  2022. The following 
articles were added in relation to trademarks: Articles 27 bis A (expiry), 27 bis B (burden of proof), 
27bis C (counterclaims) and 27 bis D. Under the amended law, the registration of trademarks that 
have not been used for five years can be cancelled at the request of a party. In addition, commercial 
trademarks registered in Chile must be in effective use in order to remain valid. It is the  owner of 
the registered trademark who is responsible for demonstrating its use. If they fail to do so, the 
trademark is declared invalid unless the owner can prove that there are valid reasons preventing its 
use.241 Trademarks cannot be registered for defe nsive purposes or to prevent a competitor from 
entering the market. Under the reform, it is also possible to request the cancellation of a registered 
trademark if the sign has lost its distinctive character, that is, when the trademark has become the 
gener ic name for a product or service.  
 
240 For trademarks containing signs, shapes, figures, colours, words, prefixes, suffixes, roots or 
segments that are commonly used or t hat may be generic, indicative or descriptive, the protection is granted 
to the trademark as a whole rather than its individual elements.  
241 Under the Law, valid reasons preventing use include circumstances arising independently of the will 
of the owner and  that constitute an obstacle to the use of the trademark, such as import restrictions on, or 
other government requirements for, the protected products or services.  WT/TPR/S/451/Rev.1  
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  3.276.   The amendments broaden the definition of a trademark to include non -traditional marks, 
such as three -dimensional marks and smells. These were not afforded protection in earlier 
legislation, as they did not meet the graphic  representation requirement, which has now been 
removed. The new legislation also emphasizes the distinctive nature of a trademark as a requirement 
for registration. Law No.  21.355 removes the possibility of registering commercial and industrial 
establishm ents as trademarks but allows those already registered to be renewed as service marks. 
The amended legislation also includes new offences and penalties for trademark infringement, with 
trademark counterfeiting becoming a criminal offence punishable with im prisonment. Previous 
legislation provided only for monetary penalties for intellectual property offences. The manufacture, 
import, storage and marketing of products or services bearing counterfeited trademarks have also 
become criminal offences. The new le gislation introduces a system of damages in the form of a 
one-off compensatory sum, the amount of which is directly related to the seriousness of the 
infringement, up to no more than 2,000  UTM242 per infringement.243 
3.3.7.3.5   Geographical indications (GI) and appellations of origin (AO)  
3.277.   In Chile, GIs and AOs are protected by a particular law, through a sui generis administrative 
system or through an international agreement. Legislation governing the protection of GIs and AOs 
includes: Industrial Property Law No . 19.039, which was revised in DFL No.  4 of 2022; 
Law No. 18.455 of 1985 (Appellations of Origin); Decree No.  464 of 1994 (Viticultural Zoning), as 
amended by Decree No.  7 of 2015; Decree No.  56 of 2017; Decree No.  12 of 2020; Decree No.  521 
of 1999, as am ended by Decree No.  13 of 2020; and Decree No.  108 of 2007 enacting the Protocol 
to the 2007 World Wine Trade Group Agreement on Requirements for Wine Labelling concerning 
Alcohol Tolerance, Vintage, Variety, and Wine Regions. Under Chilean legislation, a GI identifies a 
product as originating from a country, region or area within the country when the quality, reputation 
or other characteristic of the product is essentially attributable to its geographical origin, while an 
AO identifies a product as origina ting from a country, region or area within the country when the 
quality, reputation or other characteristic of the product is essentially attributable to its geographical 
origin, but also takes into account the natural and human factors that come into play  in the 
characterization of the product. Protection is indefinite, provided the conditions that led to 
recognition are still met.  
3.278.   Products that cannot be recognized as GI or AO products are those that: do not comply with 
the legal definitions; are contrary  to public order or morality; could mislead or confuse the public 
consumer about the origin of the GI or AO or about the attributes of the products they are intended 
to distinguish; are common or generic indications used to distinguish the product in quest ion, unless 
they are recognized as a GI or AO under an international treaty ratified by Chile; share graphic, 
phonetic or conceptual similarities that could lead to confusion with other previously requested or 
registered distinctive signs or with an unregi stered distinctive sign that was in use prior to the 
recognition request; or constitute a total or partial reproduction, imitation, translation or 
transcription of a trademark, AO or GI that is well known in Chile. Cancellation proceedings can be 
initiated  if the product is no longer made in the protected area or if it no longer fulfils the 
requirements for recognition, with no time limitation. In addition, a GI or AO can be removed from 
the register if any of the prohibitions laid down by law are breached.  
3.279.   Under Article  98 of the Industrial Property Law, in order to be registered, an application for 
a Chilean GI or AO for agroforestry and agroindustrial products requires a favourable report from 
the Ministry of Agriculture concerning compliance with the req uirements laid down in Article  97 of 
the Law, which is drawn up by the Ministry's Office for Agricultural Studies and Policy Development 
(ODEPA). A report from the Ministry of Agriculture is also required for foreign GIs and AOs for such 
products. As at Ju ly 2023, 16 geographical indications, 26 appellations of origin, 39 product and 
service certification marks and 35 collective marks for products and services were registered.  
3.3.7.3.6   New plant varieties  
3.280.   Law No.  19.342 of 1994 and its implementing regulations (Decr ee No.  373 of 1996) governs 
the protection of new plant varieties that are distinct, homogeneous and stable. Protection is afforded 
through registration with the Agriculture and Livestock Service (SAG) for a period of 18 years for 
 
242 1 UTM was equivalent to USD  75 in March  2023.  
243 Davis Komlos, Agustina, Ley de Propiedad I ndustrial chilena: sus cambios y su reglamento . Viewed 
at: https://lexlatin.com/opinion/ley -de-propiedad -industrial -chile-reglamento -cambios . WT/TPR/S/451/Rev.1  
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  trees and vines and 15 ye ars for other species. The protection cannot be renewed. A breeder's right 
is not infringed if the farmer uses properly acquired reproduction material on their own farm. This 
material may not, however, be publicized or transferred as seed. The breeder's ri ght over a variety 
does not prevent another person from using it to create a new variety, without authorization from 
the breeder of the original variety. If the original variety is to be used permanently for the production 
of the new variety, however, the breeder's authorization is required. Compulsory licences are 
granted if the breeder exercises an abusive monopoly on the exploitation or sale of the protected 
variety.  
3.3.7.3.7   Undisclosed information and trade secrets  
3.281.   Undisclosed information submitted to the autho rities to obtain sanitary registration is 
protected under Industrial Property Law No.  19.039, which was revised in DFL No.  4 of 2022, as well 
as under Ministry of Health Decree No.  107/2008 and Law No.  20.169 on unfair competition. By law, 
when the compete nt authority requires the submission of undisclosed test -related or other data 
relating to the safety and efficacy of a pharmaceutical or agrochemical product that uses a new 
chemical entity not previously approved by that authority, such data must be rest ricted. Undisclosed 
data are those data that have been the subject of reasonable measures to maintain them as such 
and that are not widely known by or readily accessible to individuals in the circles in which that type 
of information is usually used.  
3.282.   The L aw establishes mechanisms for the protection of undisclosed data by the Public Health 
Institute and stipulates that the competent authority cannot disclose or use test -related data for a 
period of five years for pharmaceutical products and 10 years for agr ochemical products. Protection 
is not afforded inter alia : (a) if the owner of the test -related data has been involved in conduct or 
practices deemed contrary to free competition in direct relation to the use or exploitation of that 
information; (b) for re asons of public health, national security, national emergency or other 
extremely urgent situations; (c) if the product is subject to a compulsory licence; or (d) if the product 
is not marketed in the national territory in the 12 months after its registrati on or sanitary 
authorization in Chile.  
3.283.   Trade secrets are protected under Industrial Property Law No.  19.039, which was revised in 
DLF No.  4 of 2022, and under Law No.  20.169 on unfair competition. Protection is afforded to any 
undisclosed information that a person has under their control and that can be used for a productive, 
industrial or commercial activity, provided the information is secret in the sense that: (a) it is not, 
as a whole or in the exact configuration or combination of its components, widel y known by or readily 
accessible to individuals in the circles in which that type of information is usually used; (b) it has 
commercial value because it is secret; and (c) it has been the subject of reasonable measures to 
keep it secret by its legitimate o wner. Protection is granted for an indefinite period, provided the 
three requirements continue to be met.  
3.284.   Under the reform to the Industrial Property Law, the definition of a trade secret was 
broadened to include any undisclosed information that a person o r enterprise has under its control 
and that generates competitive advantages in relation to productive, industrial or commercial 
activities. This means that the definition of a trade secret is no longer limited only to information 
about industrial processe s and products.  
3.3.7.4   Copyright  
3.285.   The Ministry of Culture, the Arts and Heritage, created by Law  No. 21.045, is responsible for 
the protection of copyright and related rights, for their enforcement in all areas of cultural relevance 
and for promoting their dissemi nation. In 2019, the Copyright Unit, under the Under -Secretariat for 
Culture and the Arts, began operating, assuming the copyright -related functions assigned to the 
Ministry in Law  No. 21.045.  
3.286.   The Intellectual Property Rights Department (DDI) in the Direct orate of Libraries, Archives 
and Museums (DIBAM) is responsible for the Intellectual Property Register in respect of copyright 
and related rights and for following up on these matters. The DDI was created by virtue of Article  90 
of Intellectual Property La w No.  17.336 of 1970 and since then has been one of the specialized 
centres belonging to DIBAM. Copyright and related rights must be recorded in the DDI register. The 
DDI's other missions include providing services to the general public, responding to user s' queries WT/TPR/S/451/Rev.1  
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  about the register and any other matter under its jurisdiction, and conserving and preserving the 
fixation of intellectual works.244 
3.287.   Copyright is governed by Intellectual Property Law No.  17.336 of August  1970, as amended 
by Law No.  21.045 of 3  November  2017 and Decree No.  277 of 2013, which regulates Intellectual 
Property Law No.  17.336, as amended by Decree No.  7 of 12  April 2022. Other copyright legislation 
includes, inter alia : Decree No.  270 of 2003 enacting the WIPO Copyright Treaty; Decree 
Law No. 908 of 1975 approving the Berne Convention for the Protection of Literary and Artistic 
Works; and Decree No.  390 of 1974 approving the International Convention for the Protection of 
Performers, Producers of Phonograms and Broadcasting Organizations .245 During the review period, 
the following laws and decrees were approved: Decree No.  155 of 2017 enacting the Marrakesh 
Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or 
Otherwise Print Disabled; Law No.  21.04 5 of November  2017 establishing the Ministry of Culture, 
the Arts and Heritage, as amended by Law No.  21.175 of August  2019 on promoting the performing 
arts; and Decree No.  122 of 2022 enacting WIPO's Beijing Treaty on Audiovisual Performances. 
During the review period, the Ministry of Culture, the Arts and Heritage published a copyright guide 
that covers many issues associated with copyright and related rights in a question -and-answer 
format.  
3.288.   Under the Law, the copyright and related rights of literary, art istic and scientific works are 
protected, including protection for artistic performances, the production of phonograms and 
broadcasts by broadcasting organizations. Also subject to copyright protection are, inter alia , 
computer programs (software), databas es, video games, multimedia works, and engineering and 
architectural plans. Both the economic and moral rights of the owners of copyright or related rights 
are protected. Moral rights are only recognized if the owners are natural persons, and they cannot 
be renounced by the owner.  
3.289.   Protection is granted throughout the life of the author and for 70  years after their death, or 
after the first publication or fixation, depending on the type of intellectual work, performance or 
phonogram production. Protection la sts for 50  years for broadcasts by broadcasting organizations. 
Title III of Law  No. 17.336 sets out a series of exemptions and limitations, and when these apply 
they concern both copyright and related rights.  
3.290.   In Chile, automatic protection applies to intel lectual works or productions, and registration 
is voluntary. Copyright law does not protect ideas in and of themselves but rather their expression 
in a work. As stipulated in Article  1.1 of Law No.  17.336, the Law "protects the rights that, by the 
mere fac t of the creation of the work, are acquired by authors of intellectual works in the literary, 
artistic and scientific domains, regardless of the form in which it is expressed, along with the related 
rights determined by it". Although the creation of the wo rk is what generates the protection, and 
registration in the Intellectual Property Register is not required, in the event of a complaint, being 
able to include the reference to the registration title or certificate gives more weight to the complaint. 
Inclusion in the register provides prime facie proof that the registered facts and acts are accurate, 
 
244 By virtue of the amendment to Supreme Decree No.  277 of 2013.  
245 Decree Law No.  1.566 of 1976 approving the Convention for the Protection of Producers of 
Phonograms Against Unauthorized Duplication of their Phonograms; Decree No.  56 of 19 77 enacting the 
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of their 
Phonograms; Decree No.  326 enacting Article  15 of the International Covenant on Economic, Social and 
Cultural Rights, ratified by Chile on 28  April 1989; Supreme Decree No.  587 of 1993 approving the regulations 
of the National Fund to Promote Books and Reading, as amended by Decree No.  137 of 2011; Decree No.  75 
of 1955 ordering compliance with, and implementation as a law of the Republic of, t he Universal Copyright 
Convention; Decree No.  74 of 1955 ordering compliance with, and implementation as a law of the Republic of, 
the Inter -American Convention on the rights of the author in literary, scientific and artistic works; Law 
No. 19.912 of 2003 bringing legislation into line with the WTO Agreements signed by Chile; Law No.  19.981 
of 2004 on audio -visual development; Supreme Decree No.  151 of 2005 approving the regulations of the 
Audio -visual Development Fund; Decree No.  139 of 2003 enacting the W IPO Performances and Phonograms 
Treaty; Law No.  19.928 of 31  January  2004 on the promotion of Chilean music, as amended by Law 
No. 21.205 of 2020; Law No.  20.243 of 2008 establishing the rules governing the moral and economic rights of 
performers over thei r performances in audio -visual format; Law No.  20.959 of 2016 extending the application 
of Law No.  20.243; Decree No.  425 of 2010 regulating the procedure for registering intellectual property 
mediators and arbitrators, the form and specifications for regi stration and the fees to be paid to mediators and 
arbitrators, as amended by Decree No.  8 of 2022; Supreme Decree No.  187 of 2011 approving the regulations 
of the Fund for the Promotion of National Music; and Decree No.  70 of 2011 enacting the Convention R elating 
to the Distribution of Programme -Carrying Signals Transmitted by Satellite.  WT/TPR/S/451/Rev.1  
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  unless proven otherwise.246 Article  8 of Law No.  17.336 provides for a presumption of ownership of 
a work and not of authorship, which means that the copyright holder is presumed to the person who 
appears as such in the registration, unless proven otherwise.  
3.291.   The Law distinguishes between original works and derivative works. Under Article  5 of 
Law No. 17.336, an original work is one that was created initially, whi le a derivative work is one that 
results from the adaptation, translation or other transformation of an original work, provided it 
constitutes a separate creation. Pursuant to Article  9 of the Law, anyone who adapts, translates or 
transforms a protected or iginal work with the authorization of the original copyright holder will 
become the copyright holder of the derivative work. When an individual adapts, translates or 
transforms an original work that is part of the common cultural heritage, they will enjoy all the rights 
provided for by law for their version. However, they cannot object to others using the same original 
work to produce different versions of it. The Law allows for the total or partial transfer of copyright 
or related rights; the transfer must  be recorded in the register within 60 days from the date of the 
conclusion of the transfer or the contract. The transfer must be carried out through a public 
mechanism or through an authorized private mechanism before a notary.  
3.292.   Law No.  17.336 contains pro visions on the collective management of copyright and related 
rights.247 Up until 2019, collective management entities required authorization from the Ministry of 
Education to engage in their activities. In 2019, the functions relating to collective managem ent 
entities were transferred from the Ministry of Education to the Ministry of Culture's Copyright Unit. 
The Ministry of Culture, the Arts and Heritage is now responsible for granting authorization to, and 
withdrawing it from, collective management entiti es. These entities are required to provide the 
Ministry with copies of the reciprocal representation contracts they have signed with foreign 
management entities. They are obliged to agree, with any person who so requests, to the concession 
of non -exclusive  authorizations for the intellectual property rights they manage, in accordance with 
the rates they themselves fix through the governing body designated in their statutes. These entities 
may have different rates for different user categories and may also s et alternative tariff plans or 
special rates by entering into contracts with user associations. If an association representing users 
of a copyright or related rights has not reached an agreement on the amount of the rates with a 
collective management entit y, this is done through a non -adversarial mandatory mediation 
procedure. If mediation is unsuccessful, the dispute may be put to arbitration. The rules governing 
mediation and arbitration procedures are set out in Law No.  17.336. The royalties collected mu st be 
shared among the owners of the works or productions used in proportion to their use.248 
3.293.   In 2020, with a view to improving copyright enforcement, a mechanism was set up through 
an agreement with the Under -Secretariat for Crime Prevention to enable people to report copyright 
infringements over the phone. In addition, on 5  August  2021, an agreement with the National 
Chamber of Commerce, Services and Tourism was approved; its aim is to foster joint efforts to 
promote respect for copyright in the  business world. A draft law on technological protection 
measures has also been drawn up that makes circumvention of technological protection measures 
punishable by law.  
3.3.7.5   Enforcement  
3.294.   Both the Industrial Property Law and Intellectual Property Law contain pro visions on 
infringement of intellectual property rights. During the period under review, the scope of the 
Industrial Property Law's provisions was expanded to allow prison sentences to be handed down. No 
amendments were made to the infringement -related pro visions of the Intellectual Property Law.  
3.295.   The Industrial Property Law determines what constitutes an offence against rights pertaining 
to trademarks, patents, utility models, industrial designs, integrated circuits and geographical 
indications; it determin es the respective fines and authorizes the confiscation, for the benefit of the 
rights holder, of the tools or elements used to commit the offence, as well as the destruction of the 
 
246 Information from the DDI. Viewed at: https://www.propiedadintelectual.gob.cl/faq . 
247 Articles 91 to 102, Title V, of Law No.  17.336.  
248 The authorized collective management entities are: Sociedad Chilena de Autores e Intérpretes 
Musicales, Sociedad de Derecho s Literarios, Entidad de Gestión Colectiva de Derechos de Productores 
Audiovisuales de Chile, Sociedad de Directores Audiovisuales, Guionistas y Dramaturgos, Sociedad de Gestión 
de los Creadores de Imagen Fija, Corporación de Actores de Chile, Entidad de G estión Colectiva de los 
Productores de Fonogramas y Videogramas , and Corporación de Directores y Guionistas Audiovisuales de Chile . WT/TPR/S/451/Rev.1  
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  articles produced illegally. Law No.  21.335 of 2021 modified the provision s of the Industrial Property 
Law, with Article  28bis amended to introduce the possibility of prison sentences for infringements of 
industrial property rights. More specifically, it stipulates that anyone who counterfeits a trademark 
that is already registe red for the same products or services, or who produces, introduces into the 
country, possesses in order to market or markets articles bearing counterfeits of trademarks that 
are already registered for the same products or services, either for profit or for  their commercial 
distribution, will be punished with short -term imprisonment of minimum to medium length.249 In 
addition, anyone who possesses in order to market or directly markets to the public articles bearing 
counterfeits of trademarks that are already  registered for the same products or services will be 
punished with short -term imprisonment of minimum length. In Chile, up until May  2022, when the 
amendments to the Industrial Property Law and its implementing regulations entered into force, 
there were n o prison sentences for those who infringed industrial property rights.  
3.296.   The penalties laid down in the Intellectual Property Law depend on the extent of the injury 
caused. Terms of imprisonment range from one day to up to 10 years for the most serious cases . 
Fines range from 5  UTM to 2,000  UTM. If any of the offences covered by the Law are repeated, the 
maximum penalties applicable to each offence are imposed and the fine may not be less than double 
the previous fine, with a maximum amount of 2,000  UTM. 
3.297.   Both the Industrial Property Law and the Intellectual Property Law authorize the use of 
border measures. In cases where there has been an infringement, or a substantiated suspicion of 
infringement, of industrial property rights or of copyright and related righ ts, the rights holder may 
file a request with the civil courts for the National Customs Service to suspend clearance of the 
goods. Once clearance has been suspended, the rights holder is given 10 working days following 
notification of the suspension order to file a claim. The customs authority may also suspend clearance 
of goods ex officio  for a maximum of 10 working days if it is obvious that the goods bear a counterfeit 
trademark or infringe copyright; in such cases, the rights holder must be notified imm ediately. In 
2022, the Nation Customs Service seized 11,828,592 units of goods suspected of infringing 
trademarks or copyright, worth a total of USD  49,786,093.  
3.298.   The National Prosecutor's Office ( Ministerio Público ) has exclusive responsibility for leading 
investigations into acts that constitute offences, including those relating to industrial and intellectual 
property, and for initiating public criminal proceedings as provided for by law. An investigation can 
be initiated in response to a complaint, due to  the filing of a claim or ex officio  by the Prosecutor's 
Office. Chile also has a special police brigade for investigations into infringement of intellectual 
property (the Intellectual Property Crimes Unit (BRIDEPI)). Together with the National Customs 
Service, BRIDEPI carries out operations to defend and protect intellectual property rights. The 
two entities work closely together, sharing information, providing training on trademarks and holding 
working sessions, among other things.  
3.299.   In Exempt Resolution No . 1.573 of 1  July 2021, the National Customs Director annulled 
Exempt Resolution No.  5.026 of 2003 setting out instructions for the application of border measures 
for the enforcement and protection of intellectual property rights. The new Resolution contai ns 
definitions of: (a)  goods that infringe copyright, which include any copies made without the consent 
of the rights holder or any duly authorized person in the country of production when that copy would 
have constituted an infringement of a copyright or related right in the country of import; and 
(b) counterfeit trademark goods, which are any goods, including packaging, that bear, without 
authorization, an industrial or commercial mark that is identical to the trademark validly registered 
in respect of su ch goods, or that cannot be distinguished in its essential aspects from such a 
trademark. The Resolution expands the scope of clearance suspension measures to include any type 
of handling, processing or other activity carried out at Customs in connection w ith customs 
destination declarations, regardless of whether they occur before, during or after said declarations.  
3.300.   Exempt Resolution No.  1.573 states that clearance suspensions may be applied at the 
request of a party or ex officio , when an infringement has  been found to have been committed or 
where there are good grounds to believe that an infringement is being committed. If the application 
is filed by a party, it is heard by a civil judge in the location of the Customs at which the customs 
destination decl aration for the infringing or allegedly infringing goods was submitted. Clearance is 
suspended for 10 working days from the date the individual notifies the customs authority. After this 
 
249 Short -term imprisonment of minimum length is 61 to 540 days, while short -term imprisonment of 
medium length is 541 days to  three years and one day.  WT/TPR/S/451/Rev.1  
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  period, if no notification has been received from the competent court  to confirm that the clearance 
suspension has been upheld, the goods can be released at the written request of the interested 
party.  
3.301.   The customs authority also has the power to suspend the customs clearance of goods 
ex officio , when it is obvious from a si mple physical examination of the goods that they are 
counterfeit trademark goods or that they infringe copyright. In this case, the regional directors, or, 
where applicable, the customs administrators, are required to issue a Clearance Suspension 
Resolutio n (RSD), which is sent to the rights holder and the importer electronically. In the 
notification, the rights holder is requested to provide information about whether the goods under 
the RSD are counterfeit trademark goods or infringe their copyright and wh ether they intend to file 
a complaint or criminal claim concerning the goods under the RSD. The National Customs Service 
carried out 1,603 IPR infringement proceedings in 2021 and 1,433 in 2022.  
 
 WT/TPR/S/451/Rev.1  
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, fore stry and fisheries  
4.1.1   Agriculture and forestry  
4.1.1.1   Main features  
4.1.  Agriculture rema ins a key sector for Chile in terms of its contribution to employment and 
exports, as it is the second largest earner of foreign exchange after mining. The two main crops (in 
hectares) are cereals (mainly wheat, oats, maize and rice) and fruit.1 The sector's export activity 
depends mainly on fruit production, and it has a comparative advantage thanks to off -season 
production in relation to northern hemisphere markets, a modern  and secure sanitary safety system 
and preferential access to a wide network of markets under a variety of trade agreements 
(Section  2.3.2). Chile is one of the world's leading exporters of grapes, cherries, plums, apples and 
blueberries.2 
4.2.  In 2022, agricu ltural GDP (including forestry) amounted to 2.8% of total GDP at current prices 
(3.3% in 2015) and accounted for 6.1% (8.2% in 2015) of total employment ( Chart  4.1). Both 
indicators showed a downward trend during the period under review, which became more 
pronounced from 2020 onwards, largely due to the effects of the pandemic. In addition, during the 
review period, the performance of the agricultural sector sustained prolonged adverse effects as a 
result of recurrent droughts, particularly in 2019. Accordi ng to a World Bank study, agriculture is 
the sector that uses the most water in Chile, making water supply and proper water management 
one of the most important environmental challenges for the country. The study recommends 
promoting programmes that encour age efficient water use and wholesale moderni zation of the 
distribution infrastructure.3 
Chart 4.1 Trade, GDP and employment in the agricultural sector, 2015 –22 
 
Note:  The agricultural sector's share of employment also includes fisheries.  
Source:  WTO Secretariat calculations based on UN Comtrade data and data from the Central Bank of Chile.  
 
1 Office for Agricultural Research and Policy (ODEPA) (2022), Informativo Ficha Nacional 2022 . 
2 ODEPA (2018), Agricultura Chilena, Reflexiones y Desafíos al 2030 , 22 January; and World Bank 
Group (2021), Un sector agrícola más re siliente al cambio climático . 
3 World Bank (2021), El agua en Chile: elemento de desarrollo y resiliencia . Viewed at: 
https://documents1.worldbank.org/curated/en/857121632811878667/pdf/El -Agua-en-Chile-Elemento -de-
Desarrollo -y-Resiliencia.pdf . 
0246810
051015
2015 2016 2017 2018 2019 2020 2021 2022
Agricultural exports (left axis) Agricultural imports (left axis)
Share of agriculture in GDP (right axis) Share of agriculture in employment (right axis)(USD billion ) (%)
6.1%
2.8%8.2%
3.3%
17.4%
8.9%18.6%
9.6%16.3%
9.9%16.4%
9.5%18.2%
10.0%16.6%
12.4%13.6%
11.4%13.8%
10.7%The figures on the bars refer to the percentage of total exports and imports.WT/TPR/S/451/Rev.1  
- 119 - 
  4.3.  Chile is a net exporter of agricultural products (WTO definition). During the period under 
review, the agricultural trade surplus remained relatively steady until 2020, averaging 
USD 5,206  million. In 2021 and 2022, the surplus more than halved to around USD 2 ,300 million  in 
both years, due to significant growth in agricultural imports. In 2022, imports of agricultural  products 
totalled USD  11,129 million, almost double their value in 2015 (USD 5,577 million), and accounted 
for 10.7% of total imports, while exports of agricultural products amounted to USD 13,441 million 
(USD  10,817  million in 2015) and accounted for arou nd 13.8% of total exports.  
4.4.  The main agricultural products  (WTO definition) exported are fresh and dried fruit, which 
accounted for roughly half (USD 6,920 million) of agricultural exports in 2022, followed by wines 
and spirits (14.4%), meat (11.3%) and pro cessed fruit and vegetables (6.1%) ( Table A4.1). Their 
main markets are China and the United States. Between 2015 and 2022, agricultural exports to 
China more than doubled from USD 1,240 million to USD 3,252 million.4 During the same period, 
agricultural exports to the United States market grew by 5%, reaching USD 2,711 million in 2022. 
Forestry is also an important component of Chilean exports; in 2022, wood pulp exports amounted 
to USD 2,592 million, or 2.7% of total  exports.5 Chile's main agricultural imports are beef, cereals 
(mainly maize and wheat) and animal feed and food waste (mainly soybean cake meal).  
4.5.  Chile's agricultural policy has not changed in any substantial way  since the last review6, 
although greater  emphasis has been placed on the development of small - and medium -scale 
agricultur al activity  and the sustainability of the sector. According to the Government Programme 
on Agriculture 2022 –26, agricultural policy is organized around eight key areas: (i) r ural 
development, (ii) strengthening family farming, (iii) water and climate emergency, 
(iv) sustainability, (v) food security and sovereignty, (vi) forestry development, 
(vii) competitiveness based on innovation, development and technology transfer, and 
(viii) international cooperation and foreign trade.7 
4.6.  In December 2020, Chile published its Agrifood Sustainability Strategy 2020 –30, which sets 
objectives in three areas  - environmental, social -ethical and economic  - and defines 
three  cross-cutting pillars  for its implementation: capacity building and innovation; networking and 
collaboration between different actors; and economic capital (access to finance).8 With this strategy, 
Chile seeks to contribute to the achievement of the United Nations Sustainable  Development Goals 
(SDGs). In 2020, Chile also adopted by decree its first National Rural Development Policy, which 
adopts a comprehensive approach that covers  all the activities included in  the rural economy, not 
only agriculture. The main tool for its im plementation is investment, not subsidies, as was previously 
the case .9 In addition, in 2021, Chile presented its Long -Term Climate Strategy, which outlines a 
roadmap for achieving carbon neutrality by 2050.10 The Strategy takes a cross -cutting approach, 
with adaptation and/or mitigation objectives for 12 priority sectors, including agriculture and 
livestock, forestry, fisheries, energy and mining. According to the OECD, in 2018, agriculture and 
livestock accounted for 10.5% of total greenhouse gases emitt ed by Chile.11 
4.7.  The agricultural sector is governed by several laws covering irrigation, food quality and safety, 
soil reclamation, agricultural insurance and forest protection, among others. During the period under 
review there were some changes. The agric ultural insurance regulations were amended to update 
the amounts and ceilings of government subsidies ( Section  4.1.1.2). In the area of irrigation, Law 
No. 18.450 approving rules for the promotion of private investment in irrigation and drainage works, 
 
4 WTO calculations based on UN Comtrade data (according to the WTO definition of agricultural  
products).  
5 WTO calculations based on UN Comtrade data (HS heading 47.03 (chemical wood pulp, soda or 
sulphate, other than dissolving grades)).  
6 Two sectoral strategies have been published since 2014, the most recent being the current 
Government's 2022 strategy.  
7 Ministry of Agriculture,  Programa de Gobierno en la Agricultura 2022 –2026. Viewed at: 
https://www.minagri.gob.cl/acerca -de-minagri -programa -de-gobierno/ . During the period 2018 –22, the key 
areas of agricultural policy were: (i) food security, (ii) securing water supply, (iii) partnership, and (iv) market 
opening.  
8 ODEPA (2020), Estrategia de Sustentabilidad Agroalimentaria 2020 -2030. 
9 Decree No. 19 of 5 May 2020, Ministry of the Interior and Public Security.  
10 Government of Chile (2021), Estrategia Climática de Largo Plazo de Chile: Camino a la carbono 
neutralidad y resiliencia a más tardar al 2050 . 
11 OECD (2022), "Chile", in Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural 
Policies for Climate Change Mitigation , OECD Publishing, Paris. Viewed at: https://www.oecd -
ilibrary.org/agriculture -and-food/agricultural -policy -monitoring -and-evaluation -2022_7f4542bf -en. WT/TPR/S/451/Rev.1  
- 120 - 
  which was due to expire in 2021, was extended until the end of 2023 while an update d version  is 
being prepared.12 This draft law seeks, among other things, to extend the support programme for 
another 12 years and to incorporate new criteria for the d isbursement of incentives to small -scale 
farmers.  
4.8.  The Ministry of Agriculture is the main public entity responsible for designing, implementing 
and coordinating agricultural policy in Chile, a role it performs with the support of 12 other 
government entiti es (Chart 4.2). The responsibilities of these entities have not changed since the 
last review and together they cover the entire agricultural sector (including forestry).13 Their 
activities include market intelligence, research, innovation, safety and cert ification, and sectoral 
support and promotion. The vast majority of agricultural support programmes are administered by 
the Agricultural Development Institute (INDAP), whose objective is to promote the economic, social 
and technological development of small-scale farmers and campesinos.  
Chart 4.2 Institutional framework of the agricultural sector  
 
Source:  WTO Secretariat on the basis of information provided by the authorities.  
4.1.1.2   Measures affecting imports and exports  
4.1.1.2.1   Measures affecting imports  
4.9.  The MFN ad valorem  tariff levels applied to agricultural products have remained virtually 
unchanged since the last review. Imports of all agricultural products (WTO definition) are subject to 
a 6% tariff, except for wheat, wheat flour (34 lines at the HS 22 eight-digit level) and sugar 
(seven  lines)14, for which a price band system applies. In 2023, the average applied tariff on 
agricultural products was 5.8%, including ad valorem  equivalents for products subject to price 
bands, which were 0% for most of these products ( Section  3.1.3.2). For non -agricultural products, 
the aver age applied tariff was 6%.  
4.10.  The price band system aims to mitigate fluctuations in the import price s of these products by 
modifying tariffs and thus keeping the import price within the range of established price limits (floor 
and ceiling values). When the r eference price for these products is below the floor value, a tariff 
surcharge is applied on the MFN ad valorem  tariff, and when the reference price is above the ceiling 
value, a tariff reduction is applied on the MFN ad valorem  tariff. More information on  the price band 
mechanism can be found in Section  3.1.3.2. During the period under review, the value of wheat and 
wheat flour imports increased significantly, in particular in 2021 and 2022, reaching more than 
double (USD 494.2 million) their value in 2015  (Table A4.2). The authorities indicated that this 
 
12 Law No. 21.526 of 28 December 2022, Article 45.  
13 For more details on the various responsibilities of these 12 entities, see WTO document 
WT/TPR/S/315/Rev.1 of 7 October 2015.  
14 The tariff lines for sugar cover four types of products: raw cane sugar, raw beet sugar, sugars 
containing added flavouring or colouring matter, and refined cane and beet sugar.  
FUCOACIREN INIA
CNRFIA
INFOR
CONAFACHIPIA
SAG
ODEPAINDAPMinistry of Agriculture
9. Agricultural Research Institute7. Foundation for Agricultural Innovation
10. Forestry Institute
12. Office for Agricultural Studies and 
Policies8. Institute for Agricultural Development
11. Agriculture and Livestock Service  
6.Foundation for Communication,       
Training and Culture of Agriculture3. Natural Resources Information Centre        
Information Centre
4. National Irrigation Commission
5. National Forestry Corporation1.Chilean Agency for Food Quality and   
Safety
2. Agri -insuranceWT/TPR/S/451/Rev.1  
- 121 - 
  increase was mainly due to difficulties  in the distribution/logistics chain and rising transport costs as 
a result of the COVID -19 pandemic; towards the end of 2022, the war in Ukraine also had an impact 
on the value of these imports.  
4.11.  Refined sugar (subheading 1701.99) is subject to a tariff quota of 60,000 tonnes per year 
under the WTO. This duty -free quota is divided between Argentina, Guatemala, Brazil and the rest 
of the Members.15 Chile also has in pla ce tariff quotas for different types of sugar under its trade 
agreements with the Plurinational State of Bolivia, Colombia, Honduras and Ecuador 
(Section  3.1.3.4). However, during the period 2015 –22, no MFN or preferential quotas were used 
for sugar. In bo th cases the annual allocation processes were declared void as the application of the 
price band system resulted in a n MFN tariff of zero for these products ( Section  3.1.3.2).16 
4.12.  Chile also has preferential tariff quotas for the following products: meat, da iry products, hake, 
salmon , and tuna preparations ( Section  3.1.3.4). During the review period, Chile undertook  to 
implement tariff quotas under its new agreements with Ecuador and the U nited Kingdom , covering 
cheese, tuna and other types of fish.17 
4.13.  In gene ral, imports of agricultural products are subject to sanitary and phytosanitary 
requirements with a view to  protecting  human , animal and plant health ( Section  3.3.3). Chile does 
not apply any quantitative restrictions or any import licensing regime ( Sectio n 3.1.5).  
4.1.1.2.2   Measures affecting exports  
4.14.  Chile notified the WTO that it had not grant ed any export subsidies for agricultural products 
during the period 2015 –22.18 It also submitted notifications on its exports of wine and certain fruit s19, 
as it is a major exporter of those products. The notifications were up to date, the most recent being 
from July 2023 in reference to 2022.  
4.15.  There were no substantial changes in ex port promotion policy for agricultural and forestry 
products in the period under review. This policy is implemented by the Ministry of Agriculture and 
the Ministry of Foreign Affairs through the Directorate -General  for Export Promotion (ProChile). The 
policy is organi zed around two key areas: promoting the internationali zation of companies 
(producers or traders) and supporting product and market diversification.20 
4.16.  ProChile provides financing to private -sector projects for the promotion of Chilean exports  
through several funds known as competitive funds  (awarded through a competition) , one of which  – 
the Fund for the Promotion of Forestry and Agricultural Exports (FPESA)  - is specific to the forestry 
and agricultural sector . This Fund has not changed since th e last review and continues to co -finance 
up to 65% of business projects with a ceiling of CLP 10 million for individual projects and 
CLP 20 million for cooperative projects.21 The competition for the award of funds is open to all 
companies (and other types of entities) in the sector, regardless of their size.22 In 2022, the FPESA 
amounted to  CLP 7,338 million, of which  CLP 30 million was for the subprogramme 
"Internationalizing Small -Scale Family Farming ". 
4.17.  ProChile also supports exporters through funding f or training, advi sory services  and 
participation in different promotional events, including international fairs, business events and trade 
 
15 WTO document G/MA/TAR/RS/82 of 30  October  2001.  
16 National Customs Directorate, Contingentes . Viewed at: 
https://www.aduana.cl/aduana/site/edic/base/port/normativas.html?filtro=20190118000549 . 
17 WTO document WT/REG423/1 of 12 April 2022.  
18 WTO documents G/AG/N/CHL/53 of 3  June 2019, G/AG/N/CHL/54 of 3 June 2019, G/AG/N/CHL/57 of 
15 April 2020, G/AG/N/CHL/58 of 15 April 2020 and G/AG/N/CHL/66 of 8 March 2022. Notifications for 2021 
and 2022 are contained in WTO documents G/AG/N/CHL/69, G/AG/N/CHL/70, G/AG/N/CHL/71 and 
G/AG/ N/CHL/72, all dated 18 July 2023.  
19 Grapes, apples, pears, quinces, plums, cherries, apricots, nectarines, peaches and kiwis.  
20 Ministry of Agriculture, ProChile . Viewed at: https://www.minagri.gob.cl/institucion/prochile/ . 
21 Cooperative projects are those with more than one beneficiary.  
22 ProChile, Fondo de Promoción de Exportacio nes Silvoagropecuarias . Viewed at: 
https://www.prochile.gob.cl/herramientas/concursos/fondos -concursables/silvoagropecuario/a -quien -esta-
dirigido . WT/TPR/S/451/Rev.1  
- 122 - 
  missions, as well as through funding for the development of sectoral brands as a trademark to better 
position Chilean  products in international markets ( Section  3.2.4.2).  
4.1.1.3   Domestic  support measures  
4.18.  Chile's agricultural sector support policy is mainly aimed at  small and medium -sized producers 
and comprises several types of programmes. According to the OECD, government inte rvention in 
the Chilean agricultural sector is among the lowest in OECD countries, with negligible market 
distortions. Over the period 2019 –21, total aid spending accounted for 0.3% of the country 's GDP, 
below the OECD average (0.6%) over the same period.23 
4.19.  Chile notified the WTO of several domestic support programmes implemented during the 
period 2015–22.24 The list of notified programmes has not changed substantially since the previous 
review ( Table A4.3). These programmes have mainly been reported under the Green Box (exempt 
from reduction) and in 2022 amounted to CLP 234,145 million (CLP 179,740 million in 2015), 
accounting for the largest share of total expenditure on support measures.  
4.20.  The support provided through these programmes consists mainly of co -payments to farmers 
and co -financing for infrastructure investments, and focuses on the areas of research, safety and 
quality (inspection services), training, and irrigation infrastructure, as well as on mitigating the 
effects of extreme weather events and  ensuring access to agricultural insurance. Compared to 2015, 
spending in 2022 increased sharply for projects aimed at improving safety and quality systems and 
irrigation systems. In 2022, these two categories, together with education and training programm es, 
recorded  the highest expenditure. Other measures notified included programmes under special and 
differential treatment (development programmes) (CLP 3,656 million), as well as under the 
Amber  Box (CLP 62,106 million). Most of these programmes were impl emented by the Agricultural 
Development Institute, the Agriculture and Livestock Service and the National Irrigation 
Commission.  
4.21.  Chile maintains its agricultural insurance  programme ( Agroseguros , notified to the WTO), 
which subsidi zes the co -payment of pre miums for forestry and livestock insurance in order to 
promote insurance in the sector. Th e programme is administered by the Agricultural Insurance 
Committee. Its operation saw no substantial changes during the review period, although the subsidy 
amounts a nd ceilings were updated. The amount of co -financing depends on several criteria; 
however, in general , since 2016 it has consisted of a base payment of 40% of the premium (instead 
of 50%, as it was previously). To this payment is added a fixed subsidy equi valent to 1 UF, with a 
ceiling of 80 UF per policy, as well as other subsidies that can be accumulated as the case may be.25 
In total, the subsidy cannot exceed 98% of the premium value (instead of 70% as it was until 2020) 
for small and medium -sized farmers. This programme offers four types of insurance: (i) agricultural 
insurance for crops against climate risks (such as droug ht, excessive rain or frost), (ii) livestock 
insurance covering the risk of animal death, (iii) beekeeping insurance, and (iv) forestry insurance 
against fire and other risks. The programme also includes price insurance for wheat and maize, with 
options fo r futures and exchange rate contracts with the aim of fixing an approximate minimum 
price for the product in Chilean pesos. In 2022, the  programme  amount increased to 
CLP 6,539  million (CLP 4,353 million in 2015).26 
4.22.  In addition to the notified programmes, Chile has other support programmes implemented 
mainly through the Ministry of Agriculture and INDAP. These programmes are varied and include 
training programmes, access to credit on preferential terms27, and project financing through 
 
23 OECD (2022), "Chile",  in Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural 
Policies for Climate Change Mitigation , OECD Publishing, Paris. This survey covers 54 economies, includ ing all 
OECD and EU economies, plus 11 emerging economies.  
24 WTO documents G/AG/N/CHL/48 of 7 December 2016, G/AG/N/CHL/55 of 4 June 2019, 
G/AG/N/CHL/56 of 4 June 2019, G/AG/N/CHL/61 of 26 May 2020, G/AG/N/CHL/62 of 26 May 2020, 
G/AG/N/CHL/65 of 29 Novembe r 2021, and G/AG/N/CHL/75 and G/AG/N/CHL/76, both dated 19 July 2023.  
25 Agroseguros, Subisidio del Estado . Viewed at: https://www.agroseguros.gob.cl/subsidio -del-estado/ . 
26 WTO documents G/AG/N/CHL/48 of 7 December 2016 and G/AG/N/CHL/76 of 19 July 2023.  
27 INDAP, Plataforma de Servicios . Viewed at: https://www.indap.gob.cl/plataforma -de-
servicios?keys=&sort_bef_combine=title_ASC&sort_by=title&sort_order=ASC&page=3 . WT/TPR/S/451/Rev.1  
- 123 - 
  competitive funds.28 Most of these programmes already existed at the time of the previous review.29 
The State Bank  (BancoEstado) also offers finance programmes for the agricultural sector that 
complement those of INDAP.  
4.23.  In April 2022, Chile redirected resources from existing pr ogrammes to create a new 
programme, called Siembra por Chile , which consists of a package of measures to reactivate the 
rural economy, create jobs, ensure food security and mitigate the recent rise in input prices 
(fertili zers and seed) and climate impacts . The programme is mainly implemented through the 
Ministry of Agriculture and INDAP.30 In 2022, the programme had a budget of around CLP 60 billion 
and comprised 13 measures under four key areas: productivity promotion, economic reactivation, 
credit and ot her sources of financing, and access to information. Among the measures implemented 
under this programme is the Siembra por Chile  credit, which provides state -backed lines of credit at 
preferential interest rates. This credit line is administered by BancoE stado and mainly targets cereal 
producers affected by the water crisis and the recent rise in fertili zer prices. The programme was 
extended to 2023.  
4.24.  In December 2022, INDAP also launched the Programme for the Promotion and Strengthening 
of the Sustainable Production of Traditional Crops to boost  cereal and pulse crops. The programme 
includes incentives to improve crop yields through the introduction of sustainable agricultural 
practices and the purchase of improved or certified seeds, as well as offering cr edit. For 2023, the 
programme has a budget of CLP 9,407 million.31 
4.25.  As part of its response to the COVID -19 pandemic, through INDAP  Chile implemented an 
emergency credit programme and a credit renegotiation programme. Th ese programmes were only 
in effect in 2021.32 
4.26.  Chile has one active state -owned company in the agricultural sector: Comercializadora de 
Trigo S.A. (COTRISA), whose oper ations have not changed since the last review.33 COTRISA is the 
country's only state trading company and Chile has regularly notified its activities to the WTO.34 
COTRISA provides conditioning, storage and marketing services for cereals (mainly wheat, maiz e 
and rice), as well as quality analysis and price monitoring services in order to reduce information 
asymmetries ( Section  3.3.5). It is also responsible for implementing the Wheat Purchases Plan , 
which  is targeted at  small -scale producers. Under this sche me, COTRISA intervenes as a wheat 
buyer in exceptional situations where the domestic price of wheat is lower than the import parity 
price35, in order to ensure that producers receive at least the latter price.36 COTRISA intervened in 
2015–17 and 2020 with annual wheat purchases that accounted for no more than 0.05% of national 
output.37 
4.27.  Chile does not have minimum prices for any agricultural product.  
4.1.2   Fisheries  
4.28.  Chile has vast and diverse fishery resources thanks to its geography, which gives it one of 
the lo ngest coastlines in the world (6,435 k m). The fisheries sector (including aquaculture) 
contributed 0.7% of GDP in 2022 and accounted for 0.9% of total employment in 2021 ( Table 4.1). 
 
28 Ministerial General Secretariat of the Government (2022), Guía de Fondos Concursables 2022 -2023. 
Viewed at: https://dos.gob.cl/wp -content/uploads/2023/01/GuiaDeFondos_20222023.pdf . 
29 WTO document WT/T PR/S/315/Rev.1 of 7 October 2015.  
30 INDAP, Siembra por Chile . Viewed at: https://www.indap.gob.cl/siembra -por-chile. 
31 INDAP, Noticias . Viewed at: https://www.indap.gob.cl/noticias/indap -pone-en-marcha -nuevo -
programa -de-fomento -para-la-produccion -sustentable -de-cultivos . 
32 OECD (2022), "Chile", in Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural 
Policies for Climate Change Mitigation , OECD Publishing, Paris.  
33 The other state -owned enterprise in the sector - Sociedad Agríc ola SACOR Spa - has not engaged in 
any commercial activity since 2019, according to the authorities.  
34 WTO document G/STR/N/19/CHL of 11 April 2023.  
35 The import parity price is the price that would apply if the wheat were imported.  
36 Information provided by the authorities . 
37 WTO document G/STR/N/19/CHL of 11 April 2023.  WT/TPR/S/451/Rev.1  
- 124 - 
  According to FAO, in 2020 Chile was the world's tenth largest capture fis heries producer, accounting 
for 2% of global output.38 
4.29.  Chile is a net exporter of marine products, its third largest export item after mining products 
and fruit. During the period under review, exports of fishery products (WTO definition) generally 
increas ed (except in 2019 and 2020) and amounted to 8.7% of total exports in 2022 (7.8% in 2015) 
(Table 4.1). The main export destinations were the United States, Japan, Brazil and China, which 
together accounted for almost 70% of total fishery exports in 2022.39 That year, most of the exports 
in value terms came from aquaculture and the rest from capture fisheries . Of the 104 types of marine 
products exported, salmon remained the leading  product.40 
Table 4.1 Main indicators in the fisheries sector, 2015 –22 
 2015  2016  2017  2018  2019  2020  2021  2022  
Share of GDP (% at current prices)  0.4 0.6 0.8 0.7 0.8 0.5 0.6 0.7 
Employment (% of total employment)  1.20 1.28 1.23 1.24 0.89 0.87 0.89 n.a. 
Exportsa (% of total exports)  7.8 8.5 8.7 9.1 9.5 8.1 7.2 8.7 
Exportsa (USD  million)  4,834  5,152  5,996  6,794  6,534  5,967  6,807  8,467  
Importsa (USD million)  428 330 395 441 390 430 463 530 
n.a. Not available.  
a According to the WTO definition for fishery products.  
Source:  WTO Secretariat calculations based on UN Comtrade data, and data from the Central Bank of Chile 
and the Under -Secretariat of Fisheries and Aquaculture.  
4.30.  The fisheries sector is mainly governed by the General Law on Fisheries and Aquacultur e of 
1989, as amended41, added to which are several specific regulations. During the period under review, 
the Law was amended 14 times, among other things, to strengthen compliance, promote 
environmental sustainability and gender equity, and improve workin g conditions in the sector.42 At 
the time of writing, a new fisheries law was being drafted and was expected to be submitted to the 
National Congress in the second half of 2023.  
4.31.  With regard to the WTO Agreement on Fisheries Subsidies, the authorities indicated that 
internal procedures for its ratification were underway.  
4.32.  The Ministry of Ec onomic Affairs , Development and Tourism, through its Under -Secretariat of 
Fisheries and Aquaculture (SUBPESCA), remains the agency in charge of regulating and 
administering fishing and aquaculture activity in the country. In addition, three institutions under 
the Ministry provide different services to the sector: (i) the National Fisheries and Aquaculture 
Service (SERNAPESCA), which oversees compl iance with the law, monitors illegal fishing and certifies 
the sanitary quality of exports, among other functions; (ii) the Institute for the Promotion of Fishing 
(IFOP),  which engages in research and provides scientific advice to SUBPESCA; and (iii) the N ational 
Institute for the Sustainable Development of Artisanal Fisheries and Small -Scale Aquaculture 
(INDESPA),  created in 2018 and responsible for promoting artisanal  fishing and small -scale 
aquaculture through programmes aimed at boosting productive capa cities. These programmes are 
implemented through competitive funds and include infrastructure development, training and the 
restocking of exploited hydrobiological resources.  
4.33.  The institutional framework of the sector is completed by the National Fisheries Council, the 
National Aquaculture Commission, technical scientific committees, fisheries resource management 
 
38 FAO (2022), The State of World Fisheries and Aquaculture 2022.  Towards Blue Transformation. Rome, 
FAO. Viewed at: https://www.fao.org/3/cc0461en/cc0461en.pdf . 
39 WTO Secretariat estimates based on UN Comtrade data.  
40 SUBPESCA (2023), Informe Sectorial de Pesca y Acuicultura Consolidado (2021 -2022) , Sectoral 
Analysis Department.  
41 Law No. 18.892 of 23 December 1989, consolidate d by Decree No. 430 of 21 January 1992, Ministry 
of Economic Affairs, Development and Reconstruction.  
42 The amendments were introduced, inter alia , by Law No. 21.132 of 31 January 2019, Law No.  21.287 
of 12 December 2020, Law No. 21.370 of 25 August 2021, Law No. 21.410 of 27 January 2022 and Law 
No. 21.532 of 31 January 2023.  WT/TPR/S/451/Rev.1  
- 125 - 
  committees and zonal fishing councils. These bodies, some of which are public -private, perform an 
advisory role to SUBPESCA.  
4.34.  Access to fish ery and aquaculture activities ( artisanal  and industrial) is regulated through a 
system of permits for fisheries  and concessions for aquaculture. Chilean nationals, foreign nationals 
with permanent residence in Chile, and legal entities legally constituted in the country, may 
participate in these activities.43 Foreign equity participation in a Chilean company does not require 
prior authori zation.44 
4.35.  The permit system for fish eries activities covers three types of regimes: (i) the regime for 
fisheries in a state of f ull exploitation; (ii) fisheries under the recovery or incipient development 
regime; and (iii) the general regime for fisheries with closed access.  The la tter applies to those 
fisheries that have not been declared under either of the two other regimes.45 This system has not 
undergone any fundamental changes since the last review.  
4.36.  Each regime is administered through a different permit (Table 4.2). The full exploitation 
fisheries regime is administered with tradable licences (LT) in the case of industrial fis heries, or 
without licen ces but subject to registration in the case of artisanal  fisheries. LTs can be of two  types 
(A or B) and differ by their award mechanism, among other things. The allocation of a type A LT is 
made on the basis of historical allowance s and volumes, while type B LTs are allocated by public 
auction. The regime for recovering or incipient fisheries is governed by special permits issued 
through public auctions, while the closed -access fisheries regime is administered through 
authori zations  granted upon application . Regarding the latter, the authorities report that the receipt 
of applications is currently suspended.46 SUBPESCA grants the different permits and establishes for 
each fishery subject to these regimes an overall catch quota, inclu ding a commercial quota. For full 
exploitation fisheries (with and without LT s), the commercial quota is divided into two parts: one for 
artisanal  fishing and one for industrial fisheries.  
Table 4.2 Types of fisheries regimes, 2022  
Fisheries 
regime  Type of permit  Type of award  Coverage  Duration  
Full exploitation  Industrial fishing: Type 
A and B tradable 
licences (LT)  Type A  LT: annual 
allocation based on 
historical allowances 
and volumes  Type A LT: up to 85% 
of the industrial quota  Type A LT:  
20 years, renewable  
Artisanal  fishing: no 
licence, but subject to 
registration  Type B LT: Public 
auction  Type B LTa: up to 15% 
of the industrial quota 
depending on the level 
of performance of the 
overall quota  Type B LT:  
20 years, 
non-renewable. After 
this term, the licence 
is auctioned again.  
Recover yb or 
incipient  
developmentc Special permits  Public auction  10% of the commercial 
quota. The commercial 
quota is the sum of the 
artisanal  and industrial 
quotas.  10 years , 
non-renewable. After 
this term, the permit is 
auctioned again.  
 
43 Articles 17, 28B and 71 of the General Law on Fisheries and Aquaculture.  
44 According to the authorities, the regulation requiring prior authorization for foreign equity 
participatio n has been tacitly repealed.  
45 These fisheries may subsequently be declared as under full exploitation, recovering or incipient, 
depending on their biological status, and the authorization may be replaced by the appropriate licence/permit. 
Areas reserved f or artisanal  fishing and the exclusive economic zone (EEZ)are excluded.  
46 In 2022, there were 24 fisheries with biological reference points (including 8 whose biological status 
had not been updated): 14 were under the full exploitation regime with LT, 1 wa s under the full exploitation 
regime without LT, 3 were recovering or incipient, and 6 were under the closed -access regime. Of the total, 
43% were considered healthy. SUBPESCA (2023), Estado de la situación de las principales pesquerías 
chilenas  2022. WT/TPR/S/451/Rev.1  
- 126 - 
  Fisheries 
regime  Type of permit  Type of award  Coverage  Duration  
Closed -access  Authori zations  Subject to application 
(currently no 
applications are being 
received).  There is no award 
percentage. Access is 
free subject to having 
the respective permits.  Indefinite  
a For full exploitation fisheries, the industrial quota is administered through type A and B LTs. For type 
B licences, the allocation per participant may not exceed 40% of the quota to be auctioned, and 
there is also a percentage reserved for SMEs.  
b Fisheries subject to the recovery regime are those which were declared overfished when the regime 
was introduced or when the Gen eral Law on Fisheries and Aquaculture was drafted.  
c Fisheries subject to the incipient development regime are those subject to the closed -access regime, 
with an overall annual catch quota, where there is no fishing or what fishing there is accounts for 
less than 10% of the quota.  
Source:  WTO Secretariat based on information provided by the authorities and the General Law on Fisheries 
and Aquaculture, as amended.  
4.37.  Holders of fishing authori zations, licences and permits are subject to the payment of a licence 
fee for each vessel engaged in extractive fishing activities (industrial and artisanal ). Holders of type 
A LTs under the full exploitation fishery regime must also pay a specific tax, whi le those holding type 
B LTs must pay an annual fee based on the award price for the duration of the licence.  
4.38.  In October 2015, Chile adopted the regulations for type B LT auctions; the first such auction 
was held in December that year.47 A draft law to modi fy the licensing system of the full exploitation 
fisheries regime is currently making its way through the legislative process. This draft law seeks, 
among other things, to promote the entry of new actors into the sector, and to expand the 
participation of existing smaller actors.48 
4.39.  Persons interested in industrial fish ery activities may only use vessels registered in Chile.49 
According to the Shipping Law, in order for a vessel to be  register ed, it must be Chilean -owned , 
i.e. the owner must be a Chilean nat ional.50 In the case of a company, the company  must be 
incorporated under Chilean law, have its principal place of business in Chile, have majority Chilean 
capital, and have management staff of Chilean nationality. Foreign fishing vessels can be registered 
in Chile under the principle of reciprocity, although, according to the authorities, this has not 
happened. In addition, the captain and crew of fishing vessels, as well as personnel in related 
activities, must be Chilean. Crew members may be foreign nationals domiciled in Chile only if their 
partici pation is considered indispensable for the work.51 Foreign vessels are prohibited from engaging 
in fishing activities (other than for research) in inland waters, territorial waters and the exclusive 
economic zone (EEZ).  
4.40.  The system of aquaculture concession s underwent no substantial changes during the period 
under review. To engage in aquaculture activities, interested persons must apply for a concession 
from SERNAPESCA. If the application is approved, on the basis of SUBPESCA's recommendations a 
renewable 2 5-year concession over a maritime, river, beach and/or beach and rocky area is obtained 
from the Under -Secretariat for the Armed Forces.52 
4.41.  During the period under review, Chile continued to promote the development of the productive 
capacities of artisanal  fisheries53 and small -scale aquaculture through different programmes and 
subsidy funds.  In August 2019, INDESPA (created in 2018  - see above), took over the administration 
of the resources of the Artisanal  Fishing Promotion Fund (FFPA) and the Fisheries Ad ministration 
Fund (FAP), which were previously managed by SERNAPESCA and SUBPESCA, respectively. 
Subsequently, th ese two funds ceased to exist. In 2021, INDESPA financed sector support 
 
47 Decree No. 103 of 21 October 2015, Ministry of Economic Affairs, Development and Tourism.  
48 IFOP (2022), Monitoreo Económico de la Industria Pesquera y Acuícola Nacional, año 2021 -2022. 
Viewed at: https://www.ifop.cl/wp -content/contenidos/uploads/RepositorioIfop/InformeFinal/2022/P -
581188.pdf . 
49 Articles 15 and 29 of the General Law on Fisheries and Aquaculture.  
50 Article 11 of Decree Law No. 2.222 of 31 May 1978, Ministry of National Defence.  
51 Article 14 of Decree Law No. 2.222, Ministry of National Defence.  
52 For more information on the concessions system, see WTO document WT/TPR/S/315/Rev.1 of 
7 October 2015.  
53 The first five nautical miles of the territorial coastal waters, together with the country 's beaches and 
its inland waters, are generally reserved for artisanal  fishing.  WT/TPR/S/451/Rev.1  
- 127 - 
  programmes in the amount of CLP 10,921 million ( approximately  USD 13.4 million), an increase of 
13% over the expenditure financed by the FFPA and FAP in 2014.54 Chile also has a Fund for the 
Promotion and Development of Remote Areas, which co -finances investments by artisanal  fisher s. 
This Fund is administered by the Chilean Economic Development Agency (CORFO). INDESPA and 
the other funds mentioned above use direct or competitive transfers as their main instrument of 
support. These programmes have been notified to the WTO; the most recent  notification was 
received in 2 023 for the period 2021 –22.55 
4.42.  There are also a number of support programmes for artisanal  fisheries operated by other 
institutions at the national level. Some were adopted during the review period. For example, in 2019 
SUBPESCA adopted a social agenda aime d at the artisanal  sector, which includes measures such as 
a "solidarity contribution ", a special  fund for aquaculture development, funding for technical studies, 
and a programme to boost initiatives to promote seafood consumption.56 In 2020, Chile adopted  the 
subsidy programme , Reactívate Pesca Artesanal , to support micro - and small enterprises whose 
artisanal  fishing and/or aquaculture activities were disrupted by the pandemic.57 The programme 
was run by the Technical Cooperation Service (SERCOTEC), part of the Ministry of Econom ic Affairs , 
Development and Tourism. In 2022, SUBPESCA and CORFO implemented the  PAR Chile Apoya 
Acuicultura de Pequeña Escala  programme, which provides funding to individual projects by 
aquaculture MSMEs for training, consultancy services, technical assistance and/or investment 
projects.  
4.43.  In 2016, Chile also established an annual bonus system for artisanal  fisher s, organi zations 
and micro - and small enterprises that carry out seaweed restocking and cultivation projects.58 This 
progr amme started operations in 2017 and finances up to 70% of the total cost of the projects. 
Initially administered by SUBPESCA, the programme has been run by INDESPA  since 2020 , and in 
2022 had an expenditure of CLP 1,343 million.  
4.2  Mining and energy  
4.2.1   Mining  
4.2.1.1   Main features  
4.44.  Mining remains a pillar of the Chilean economy, with copper driving the sector.59 Chile is still 
the world's top copper producer, the second -largest producer of molybdenum (one of its 
by-products) and the fourth -largest producer of silver. It  is also a major producer of iron as well as 
non-metallic minerals, including iodine and lithium, of which it is the largest and second -largest 
producer in the world, respectively.60 In 2022, mining accounted for 14.2% of nominal GDP, 
compared to 7.9% in 2 015 (Table  1.1), and generated 9% in state tax revenue, compared to 6% in 
2015.61 This increase in mining's contribution to the Chilean economy is due mainly to the higher 
price of copper, which, despite fluctuating, trended upward and nearly doubled (in n ominal values) 
between 2016 and 2021 (Chart  4.3). Copper production in Chile totalled 5.3  million fine metric 
tonnes  (FMT) in 2022, compared to 5.8  million  FMT in 2015.62 
4.45.  Led by copper, mining is the country's main export sector (Chart 4.3). In 2022, Chile  exported 
USD 56,489  million in (metallic and non -metallic) mining products, which represented a little over 
 
54 WTO documents G/SCM/N/284/CHL of 4 April 2016 and G/SCM/N/401/CHL of 30 June  2023.  
55 WTO document G/SCM/N/401/CHL of 30 June 2023.  
56 SUBPESCA, Agenda social para pescadores artesanales de todo Chile . Viewed at: 
https://www.subpesca .cl/portal/617/w3 -propertyvalue -64077.html#noticias_relacionadas . 
57 SERCOTEC, Reactívate Pesca Artesanal . Viewed at: https://www.sercotec.cl/reactivate -pesca -de-
magallanes/.  
58 Law No. 20.925 of 17 June 2016.  
59 Copper gene rated nearly all mining GDP in Chile. Mining Council (2023), Cifras actualizadas de la 
minería  (June).  
60 SERNAGEOMIN (2022), Anuario de la Minería de Chile 2021 . 
61 Mining Council (2023), Cifras actualizadas de la minería  (June).  
62 Mining Council (2023), Cifras actualizadas de la minería  (June).  WT/TPR/S/451/Rev.1  
- 128 - 
  half of total exports. The main destinations for these products are China, which received 58% of 
mining exports in 2022, Japan (8.3%), the Republic  of Korea (8.2%) and the United  States  (7.4%).63 
4.46.  With its vast mining resources, Chile is a strategic trade partner in energy transition and 
electromobility processes, in which copper and lithium play a key role. Chile is estimated to hold 
45% of the world 's lithium reserves.64 Lithium mining is still in its infancy and is expected to expand 
in the coming years. During the review period, Chile adopted the National Lithium Strategy 
(see below).  
Chart 4.3 Mineral  product exports and copper prices, 2015 -22 
 
Source:  WTO Secretariat based on data and the classification system of the Central Bank of Chile (data on 
exports) and of the Mining Council (data on copper prices).  
4.47.  The State has a large presence in the mining sector and participates in mining  activities 
through two state -owned enterprises, namely the National Copper Corporation  (CODELCO) for 
large-scale mining, and the National Mining Company  (ENAMI) for small and me dium-scale mining. 
CODELCO's main activities are the exploration, exploitation, processing and marketing of copper and 
its by -products. It is one of the world's leading companies in copper and molybdenum production65 
and, in 2022, accounted for 29% of Chil e's total copper production66, with private companies 
generating the rest.67 ENAMI focuses its activities on the development of small and medium -scale 
mining and provides various types of services to miners and SMEs. These services include the 
processing, smelting and marketing of minerals. ENAMI also has financing (in the form of loans) and 
technical assistance programmes.  
 
63 Central Bank of Chile, Balanza Comercial por Países, anual . Viewed at: 
https://www.bcentral.cl/web/banco -central/comercio -exterior -de-bienes -excel. 
64 InvestChile (2022), Reporte Minería: Proyección y Oportunidades . 
65 SERNAGEOMIN (2022), Anuario de la Minería de Chile 2021 . 
66 This figure includes CODELCO's share in El Abra mine and in Anglo American Sur.  
67 In 2022, three companies, including CODELCO, were responsible for around 60% of the country's 
copper production. Chilean Copper Commission, Boletín Mensual Electrónico (Table 17) . Viewed at:  
https://www.cochilco.cl/Paginas/Estadisticas/Publicaciones/BoletinMensualElectronico.aspx . 
0102030405060708090100110
2015 2016 2017 2018 2019 2020 2021 2022Exports Price of copper
249 
221 280 296 
272 280 423 400 
317
277344356
321327479
405
0100200300400500600
2015 2016 2017 2018 2019 2020 2021 2022
Nominal price
Real price (in current USD)Other sectors
Copper
Lithium carbonate
Iron
Other miningMining sector:50.5%52.3%
51.4%61.4%% of mining sector in total 
exports(USD million) (USD/lb)
57.3%WT/TPR/S/451/Rev.1  
- 129 - 
  4.48.  CORFO also carries out economic activities in the sector, as it owns 41  mining concessions 
and has leasing agreements for their exploit ation (see below).68 In particular, it owns the Atacama 
salt flats ( Salar de Atacama ), home to what is thought to be the world's largest lithium reserve. It 
also has reserves of iron (Atacama region), coal (Bio bío and Magallanes regions), and lead and zinc 
(Aysén region).  
4.49.  Mining tax revenue, particularly from copper, contributes to the Economic and Social 
Stabilization Fund  (FEES) (Section  1). This Fund receives the effective fiscal surplus69 every year 
and is intended to fund fiscal deficits in economi cally difficult years.70 
4.2.1.2   Legal and institutional framework  
4.50.  The mining sector is regulated primarily by the Constitution, the Organic Law on Mining 
Concessions, and the Mining Code and its implementing regulations (Table  4.3). In addition to these 
legal ins truments, there are others of a specific nature covering, inter alia , safety standards for 
mining activities and the operation of state -owned enterprises. During the review period, the Mining 
Code was amended to increase the value of mining licence fees an d strengthen some operational 
aspects of mining concessions. These changes are expected to take effect in January  2024. 
Amendments were also made to the Mining Safety Regulations to step up safety measures that 
companies and workers must comply with in sma ll-scale mining operations.71 In May  2023, the 
National Congress approved the draft law establishing a new mining royalty. The procedures for 
enacting this law have been under way as of July  2023.  
Table 4.3 Main legal instruments regulating the mining sector  
Legal 
instrument  Description  Publication 
date Latest 
amendment  
Decree No.  100 Establishes the Revised, Coordinated and Consolidated Text 
of the Political Constitution of the State (Article  19, 
paragraph  24), Ministry General Secretariat of the Office of 
the President  22/09/2005  04/05/2023  
Law No.  18.097  Constitutional Organic Law on Mining Concessions  21/01/1982  24/09/1983  
Law No.  18.248  Mining Code  14/10/1883  04/02/2022  
Decree No.  1 Mining Code Regulations, Ministry of Mining  27/02/1987  22/11/2010  
Source:  WTO Secretariat.  
4.51.  In March 2022, Chile adopted the National Mining Policy 2050  by means of a decree, providing 
a road map for the implementation of a new sustainable development mode l over the next 30  years. 
This model has four components, namely, economic, social, environmental and institutional, under 
which Chile has identified 14 objectives and 78 targets/actions to achieve them. These objectives 
include becoming a world leader in sustainable mineral production, modernizing the mining legal 
framework, strengthening the corporate governance of state -owned enterprises, achieving carbon 
neutrality in the sector by 2040 and improving working conditions in mining, as well as including 
and collaborating with indigenous peoples and communities.72 
4.52.  In response to the increasing importance of lithium in the global energy transition, Chile 
published the National Lithium Strategy in April  2023 to ensure the sustainable exploitation of this 
miner al, and to increase and strengthen the State's participation in this process. This strategy 
consists of a package of lithium -related measures that include modernizing its institutional 
framework; creating a state -owned enterprise that can participate in th e entire lithium production 
cycle; establishing the Public Institute for Technology and Research on Lithium and Salt Flats; and 
involving the State in Salar de Atacama's mining activities through CODELCO.73 This strategy is 
 
68 The a uthorities stated that CORFO is not authorized to conduct economic business activities, which is 
why it engages in leasing to fund its activities.  
69 Once contributions have been made to the Pensions Reserve Fund.  
70 Law No.  20.128 of 30  September 2006 on Fi scal Responsibility.  
71 Decree No.  30 of 23 February 2022, Ministry of Mining.  
72 Decree No.  2 of 28 January 2023, Ministry of Mining. For more information on the National Mining 
Policy2050, see: https://www.politicanacionalminera.cl/ . 
73 Government of Chile, Estrategia Nacional del Litio . Viewed at: https://www.gob.cl/litioporchile/ . WT/TPR/S/451/Rev.1  
- 130 - 
  broader than the National Lithiu m Policy issued in 2016, the conclusions of which will feed into the 
Strategy.  
4.53.  Based on this new strategy and to ensure the State's direct involvement in lithium mining, 
the authorities indicated that the following measures had been taken. In May 2023, COD ELCO 
created two subsidiaries for lithium: Salares de Chile SpA., focused on promoting lithium activities 
in the country, and Minera Tarar SpA., focused on exploitation activities exclusively in Salar de 
Atacama, with the potential to partner with private companies active in the sector.74 In 2018, 
CODELCO also created the subsidiary Salar de Maricunga SpA. for operations on the Maricunga salt 
flat, where CODELCO has a Special Lithium Operation Contract (see below). Moreover, in 
December  2022, ENAMI created the subsidiary ENAMI Litio SpA.  
4.54.  The main public institutions governing the mining sector are still the Ministry of Mining, the 
National Geology and Mining Service (SERNAGEOMIN) and the Chilean Copper 
Commission  (COCHILCO). The Ministry of Mining is respons ible for formulating, implementing and 
evaluating policies in this area, and relies on SERNAGEOMIN and COCHILCO to carry out its 
functions. COCHILCO is responsible for advising the Ministry on mining policies and overseeing 
state-owned enterprises, while S ERNAGEOMIN provides the Ministry with technical advice on geology 
and monitors compliance with legislation on mining safety and concessions.  
4.55.  In addition to these three entities, the Chilean Nuclear Energy Commission  (CCHEN), an entity 
under the Ministry of  Energy, also has lithium -related responsibilities. The CCHEN is responsible for 
overseeing the marketing of lithium, and approving any projects for its exploration and/or 
exploitation.75 
4.2.1.3   Mining regime  
4.56.  Pursuant to the Chilean Constitution (Article  19), the State is the sole owner of all minerals 
in the territory, although it allows domestic or foreign companies to carry out activities in the sector 
through a system of mining concessions, with some exceptions. There are two types of mining 
concessions, one for exploration and another for exploitation, which can be granted for all types of 
(metallic and non -metallic) minerals and deposits in Chilean maritime waters accessible from land 
by tunnels.76 Under this system, concessions may not be gr anted for liquid or gaseous hydrocarbons 
and lithium, or for deposits located in Chile's maritime zones (inaccessible from land) or in areas 
considered of importance for the country's national security.  
4.57.  Generally speaking, the process for granting a mining  concession is the same as during the 
previous review, albeit with some changes introduced to certain aspects of the concessions pursuant 
to Law No.  21.420 of 2022 and amendments thereto77 (see below). The changes were to take effect 
in February  2023, but have been postponed until January 2024.78 
4.58.  Any natural or legal person, whether Chilean  or foreign, can request a mining concession. 
This request is made to a competent court and, if it meets the technical requirements, the judge 
grants the concession by me ans of court decision.79 The exploration concession is valid for two years, 
renewable for another two (as long as at least half of the total area of the concession is 
relinquished).80 Starting in January 2024, pursuant to Law No.  21.420 (and amendments the reto), 
the validity of the exploration concession will be four years, with no possibility of renewal. The 
exploitation concession has an indefinite duration, provided it fulfils the corresponding obligations 
(payment of a licence fee).81 Once the concessio n is granted, the concession -holder, depending on 
the project in question, must request different permits (there are 230 types) and meet numerous 
requirements that cover environmental, energy and project safety aspects, among others. These 
 
74 The authorities stated that CODELCO and SQM are in talks to set up a joint venture to mine the 
Salar de Atacama as of 2030, in which CODELCO would have a majority stake.  
75 Article  3 of Law No.  16.319 of 23 October 1965 and amendments thereto.  
76 Articles 5 and 7 of the Mining Code.  
77 Law No.  21.420 of 4 February 2022 and Law No.  21.462, amending Law No.  21.420 of 26 July 2022.  
78 Law No.  21.536 of 26 January 2023.  
79 Articles 34 to 90 of the Mining Code.  
80 Article  112 of the Mining Code.  
81 Title X of the Mining Code.  WT/TPR/S/451/Rev.1  
- 131 - 
  permits are issu ed by SERNAGEOMIN and other public entities with jurisdiction in the area.82 Law 
No. 21.420 (and amendments thereto) provides that the concession -holder must provide 
SERNAGEOMIN with all the geological information obtained from the works carried out at the  end of 
the exploration concession, and every two years in the case of mining exploitation concessions. In 
2022, there were around 10,000 holders of mining exploitation concessions.  
4.59.  Mining activities are subject to the annual payment of the specific tax on  mining 
activity  (IEAM) and a licence fee, in addition to basic taxes. The licence fee is a duty that varies 
according to the type of concession and the number of hectares under concession, while the IEAM 
is an ad valorem  tax on the operational taxable inc ome of each company, the rate of which varies 
according to the size of its annual sales. The IEAM is applied only to companies with annual sales 
above 12,000  FMT. Under Law No.  21.420 (and amendments thereto), the exploration licence fee 
will increase as o f 2024, and a progressive scale will be introduced for the payment of licence fees 
for exploitation without any mining activity, which will vary based on the length of the concession.  
4.60.  In May 2023, the National Congress approved a draft law establishing a n ew mining royalty 
for producers with annual copper sales above 50,000 FMT, composed of two elements: an 
ad valorem  tax of 1% on mineral sales and an ad valorem  tax on mine operating income (or "mining 
margin"), which ranges from 8% to 26%. This second comp onent will be applied according to these 
rates, provided that more than 50% of annual sales come from copper.83 The law stipulates that the 
total tax burden of the income tax, additional tax and mining royalty may not exceed 46.5% for 
companies with a copp er production greater than 80,000 FMT and 45.5% for those with a production 
of between 50,000 FMT and 80,000 FMT. At the time of writing, the law had yet to be passed. Once 
enacted, the law will take effect on 1 January 2024, and the mining royalty will re place the IEAM.84 
4.61.  Chile has a copper reserve for the domestic manufacturing industry to ensure its supply 
(refined, electrolytic or blister).85 This mechanism did not change during the review period, and 
continues to allow manufacturers that comply with th e regulations to acquire copper from the reserve 
for their activities. The copper in the reserve comes mainly from CODELCO (around 95% in 2022), 
with ENAMI providing the rest. Its selling price is set by COCHILCO based on the international price 
of copper.  In 2022, nine companies obtained supplies from this reserve, acquiring 62,000  FMT of 
copper from CODELCO, the equivalent of 1.2% of Chile's total production.86 
4.62.  In 2018, Chile implemented the Copper Price Stabilization Fund for Small -scale Mining to 
mitiga te the fluctuations in prices for small producers. This Fund, administered by ENAMI, was 
established with an initial contribution of USD  50 million.87 Under this mechanism, ENAMI buys 
copper products at rates calculated based on a "stabilization price" , communicated by the Ministry 
of Finance.88 Through the Fund, ENAMI finances part of the difference between the international 
price and the stabilization price, if the latter is higher. If the international price is higher than the 
stabilization price, ENA MI will transfer part of the difference to the Fund.  
4.63.  For minerals not under concession, exploration or exploitation activities can be carried out by 
state-owned or private enterprises (domestic or foreign) through administrative concessions89 or 
through sp ecial operation contracts signed with the State, defined on a case -by-case basis.90 These 
types of concessions or contracts are executed by means of a decree. In the case of lithium, 
exploration or exploitation requires the prior approval of the Chilean Nu clear Energy Commission. 
Until April  2023, this type of contract had been negotiated for hydrocarbons (Section  4.2.2). Current 
 
82 Ministry of Mining, Repertorio de Permisos y Obligaciones Normativas para un Proyecto Minero. 
Viewed at: http://sisnor.minmineria.cl/Site/index . 
83 For mining producers that have sales (i)  of which 50% are not from copper, or (ii) do not exceed 
50,000  FMT, other rates are applied for the mining operating income component.  
84 Chamber of Deputies, Proyectos de Ley . Viewed at: 
https://www.camara.cl/legislacion/ProyectosDeLey/tramitacion.aspx?prmID=12617&prmBOLETIN=12093 -08. 
85 Law No.  16.624 of 15 May 1967 and Decree No.  32 of 8 October 1988, Ministry of Mining.  
86 Data provided by the authorities . 
87 Law No.  21.055 of 3 January 2018 and Decree No.  33 of 16 February 2019, Ministry of Mining.  
88 Article  3 of Law No.  21.055 define s this price as "the long -term reference price of copper used to 
estimate the structural budget balance of the public sector."  
89 Through administrative concessions, the exploitation of a resource is entrusted to a private entity for 
a given period. They differ from mining concessions, which are judicial in nature.  
90 Article  8 of the Mining Code.  WT/TPR/S/451/Rev.1  
- 132 - 
  lithium exploration and exploitation contracts are not based on this legal construct, as they were 
signed before the regime came into force.  
4.64.  At present, two private companies mine lithium in Salar de Atacama as part of projects 
negotiated and tendered in the 1970s with CORFO, the owner of this salt flat. These contracts were 
renegotiated in 2016 and 2018, with expiry dates at the en d of 2030 and 2043, respectively. They 
include a clause under which producers must offer up to 25% of their lithium production at a 
preferential price to locally established enterprises, in order to promote the manufacture of 
value -added lithium products i n the country.91 As of June 2023, the preferential price clause in only 
one of these contracts  has been used.92 
4.65.  During the period under review, occasional calls to tender were issued for contracts to develop 
value -added lithium products, using preferential price  lithium. In that respect, the authorities stated 
that, as of June 2023, one company had taken advantage of the preferential price. The invitation to 
tender has been open on an ongoing basis since 2022.  
4.66.  With regard to support policies and  incentives, the mining sector is exempt from VAT on 
imports of capital goods intended for the development, exploration and exploitation of mining 
projects, and receives a tax credit to promote research and development. Chile also has 
two free-trade zones dedicated to mining activities.93 The law has not permitted tax invariability 
since 2015 (Section  2.4). Chile also supports small - and medium -scale mining, primarily through 
financing and technical assistance for projects. In addition to ENAMI's support pr ogrammes, the 
Ministry of Mining has a technology training and transfer programme for small -scale artisanal mining , 
which consists of a competitive fund to provide financing and technical assistance for mining 
projects.94 
4.2.2   Energy  
4.2.2.1   Overview  
4.67.  During the period 2015-22, energy consumption in Chile trended upward and continued to be 
composed mainly of petroleum products, which in 2021 accounted for 57% of total energy 
consumption, followed by electricity (23%), biomass and biogas (11%), and natural gas (7%).95 
Chile is a net importer of energy and is highly dependent on other countries in this regard. To meet 
domestic demand, Chile imports primarily petroleum and its derivatives and, to a lesser extent, coal 
and (natural and liquefied) gas. In 2022, petroleum impor ts (WTO definition) accounted for 16.6% 
of total imports, while (natural and liquefied) gas and coal accounted for 3.3% and 2.2%, 
respectively.96 
4.68.  During the period under review, Chile significantly increased its capacity to generate electricity 
from renewa ble sources (mainly solar and wind)97 and continued to promote the incorporation of 
this type of energy into its energy matrix, in order to move the energy transition forward and 
gradually abandon fossil fuels. To that end, Chile has produced a series of c omplementary strategic 
documents that define objectives for the short, medium and long term. In December  2015, Chile 
published its national energy policy, called Energy 2050, which was updated in February  2022.98 
This policy establishes a road map and vari ous targets to be reached by 2050 for a sustainable and 
inclusive energy supply in the country. The targets include, among other things, ensuring that at 
least 80% of the electricity produced in the country comes from renewable sources by 2030 and 
 
91 Library of the National Congress of Chile (Parliamentary Technical Advice) (2021), Contratos de 
explotación del Litio en Chile . 
92 Between CORFO and SQM Salar S.A., through a protocol signed in September 2019.  
93 InvestChile (2022), Reporte Minería: Proyecc ión y Oportunidades . 
94 Ministry of Mining, Programa Capacitación y Transferencia Tecnológica Pequeña Minería Artesanal . 
Viewed at: https://pammapostulaciones.minmineria.cl/ . 
95 Open Energy, National Energy Commission, Estadísticas, Balance Energético 2021  (Table 2). Viewed 
at: http://energiaabierta.cl/categorias -estadistica/balance -energe tico/. 
96 WTO Secretariat estimates based on the UN Comtrade Database.  
97 National Electricity Coordinator (2023), Reporte de Sostenibilidad 2022 . 
98 Ministry of Energy (2022), Transición Energética de Chile. Política Energ ética Nacional 
(Actualización  2022) , and Decree No.  10 of 18 May 2022, Ministry of Energy.  WT/TPR/S/451/Rev.1  
- 133 - 
  100% by 2050, as well as ensuring that at least 70% of non -electric final energy consumption comes 
from zero -emission fuels, such as green hydrogen and its derivatives, by 2050.  
4.69.  To make progress in meeting these objectives, Chile adopted the Electricity Matrix 
Decarbonization Plan in 2019, which provides for the closure of eight coal -fired power plants by 
2024.99 In December 2021, this plan was supplemented by the Just Energy Transition Strategy, 
which covers the process of decommissioning all coal -fired power plan ts (28) by 2040. As of 
December  2022, eight had been closed. In 2022, the National Green Hydrogen Strategy was 
approved, through which Chile is seeking to become a leader in the exportation and production of 
green hydrogen by 2030.100 The National Electromo bility Strategy was also published that same 
year, with which Chile undertakes to ensure that all new light and medium -sized vehicles sold in the 
country by 2035 are fully electric.101 In line with these commitments, Chile adopted the Framework 
Law on Clima te Change in June  2022, which sets the objective of achieving carbon neutrality by 
2050102, and approved the National Energy Efficiency Plan  2022-26 in April 2023.103 
4.70.  Other strategic documents published in recent years are the National Heat and Cold Strategy  
(June  2021), the Long -Term Energy Planning Programme 2023 -27 (September  2021), the Energy 
Agenda 2022 -26 (August 2022) and the Initial Agenda for a Second -Stage Energy Transition 
(April  2023).  
4.71.  At the institutional level, the leading public entities in the energy sector are still (i)  the Ministry 
of Energy, (ii) the Supervisory Authority for Electricity and Fuel (SEC), (iii)  the National Energy 
Commission (CNE), and (iv) the Chilean Nuclear Energy Commission (CCHEN). The Ministry of 
Energy is  responsible for developing and coordinating plans, policies and standards for the energy 
sector, and advising the Government in this area. The SEC is responsible for overseeing and 
monitoring compliance with legislation, technical and safety standards for  fuel- and 
electricity -related articles, and the quality of services in the sector. The CNE and CCHEN are technical 
bodies. The functions of the CNE include analysing current prices, tariffs and technical standards in 
the sector, while the CCHEN is in char ge of regulating and overseeing activities (such as production, 
acquisition and use) related to nuclear energy and radioactive and nuclear substances, or materials 
of nuclear interest, such as lithium.  
4.72.  In the area of electrical power, in addition to these institutions, there is also the Independent 
Coordinator for the National Electricity System (hereafter the National Electricity Coordinator), an 
independent technical body created in 2016 that has been in operation since 2017. The National 
Electricity Coor dinator is responsible for coordinating the operations of the National Electricity 
System (see below) and monitoring the proper functioning of the electricity sector.104 
4.2.2.2   Electricity  
4.73.  During the period 2015 -22, electricity was generated mainly from coal, whic h accounted for 
an average of 36% of the total, followed by hydropower (28%), natural gas (17%), solar 
energy  (8%) and wind energy (6%).105 Although coal was still the main source of electricity, its 
share decreased significantly, dropping from 39% in 2015 to 23% in 2022. At the same time, 
electricity generation from solar and wind energy grew tenfold and fourfold, respectively, between 
2015 and 2022. This offset the fall in electricity production from coal, while contributing to a 16% 
increase in total elec tricity production during this period, reaching 83,054  GWh in 2022. The biggest 
electricity consuming sectors are mining (36% of the total produced in 2020), industry (25%), the 
residential sector (19%), and the commercial and public sector (15%).106 
 
99 Ministry of Energy, Plan de Descarbonización de la Matriz Eléctrica . Viewed at: 
https://energia.gob.cl/mini -sitio/plan -de-descarbonizacion -de-la-matriz -electrica . 
100 Exempt Ministerial Resolution No.  11 of 1 March 2022, Ministry of Energy.  
101 Exempt Resolution No.  8 of 24 February 2022, Ministry of Energy.  
102 Law No.  21.455 of 13 June 20 22. 
103 Decree No.  4 of 25 April 2023, Ministry of Energy.  
104 Law No.  20.936 of 20 July 2016.  
105 National Electricity Coordinator, Reportes, Estadísticas y Plataformas de Uso Frecuente – Histórico de 
Generación de Energía por Tecnología . Viewed at: https://www.coordinador.cl/reportes -y-
estadisticas/#Estadisticas . 
106 Ministry of Energy (2022), Informe Balance Nacional de Energía 2020 . WT/TPR/S/451/Rev.1  
- 134 - 
  4.74.  During  the period under review, virtually all electricity used in the country was of domestic 
origin; in 2016 and 2017, very modest volumes were exported to Argentina.107 In that respect, the 
authorities stated that Chile is trying to promote greater regional integration in the energy sector 
and ensure that its legislation makes it possible to establish public service or private interest 
electrical interconnections with ot her countries. In the case of private interest interconnections, since 
2016, exports and imports of electricity and other electrical services require an exchange permit 
from the Ministry of Energy, issued by decree.108 This permit can be requested by a natu ral or legal 
person, whether Chilean or foreign.109 As of June  2023, one company held this permit (granted in 
2022) for the international exchange of energy and other electrical services with Argentina.  
4.75.  In terms of energy inputs, Chile imports natural gas a nd coal. During the review period, the 
value of natural gas imports (HS codes 2711.11 and 2711.21) nearly tripled from USD  803 million 
in 2015 (1.3% of total imports) to USD  2,335  million in 2022 (2.2%). In 2022, imports came mainly 
from Argentina, Equator ial Guinea, Trinidad and Tobago, and the United States. Imports of coal and 
its derivatives (HS headings 27.01 and 27.04) also increased, rising from USD  720 million (1.2% of 
total imports) in 2015 to USD  2,261  million (2.2%) in 2022. In that year, the mai n suppliers were 
Colombia, Australia and the United States.110 The tariff applied to coal and natural gas is 6%.  
4.76.  The electricity sector is regulated mainly by the General Law on Electrical Services and its 
implementing regulations111 and a large number of le gal instruments. The Law covers the 
three  segments of the electricity market: generation, transmission and distribution. During the 
period under review, Chile introduced various changes to its legal framework to strengthen the 
separation of the sector's se gments and improve their functioning as well as their efficiency and 
inclusiveness. These changes affect, among other aspects, the functioning of the distribution market 
(Law No.  21.194 of  2019112), the electricity tariff system and the establishment of a n ational 
interconnection system (Law No.  20.936 of 2016113) (see below). To support the energy transition, 
Law No.  21.305114, which aims to promote energy efficiency and provides for the development of an 
Energy Efficiency Plan every five years, was adopted i n 2021, and Law No.  21.505115, which seeks 
to promote the development of electrical energy storage systems and electromobility, was adopted 
in 2022.  
4.77.  Chile has also made progress in implementing Law No.  20.257 of 2008 (amended by Law 
No. 20.698 of 2013), whi ch requires that 20% of energy marketed by electrical distribution 
companies to end customers come from non -conventional renewable energy  (NCRE) sources 
by 2025.116 In 2022, around one third of the energy marketed to end customers came from NCRE 
sources. Co mpanies that fail to comply with this obligation must pay a surcharge. At the time of 
writing, various initiatives were being studied to improve the electricity distribution system, including 
a draft law encouraging the inclusion of renewable energy in the  domestic energy matrix with an 
annual participation target of 60% by 2030.117 
4.78.  The electricity generation market operates according to the free market principle, while 
transmission and distribution are considered public services and are regulated by tariffs .118 
Transmission and distribution activities, as well as generation through hydropower plants, are carried 
 
107 The authorities indicated that exports to Argentina in 2016 and 2017 accounted for less than 1% of 
total electricity generation. Some imports were also recorded in 2017 (1.6 GWh).  
108 Decree with Force of Law No.  4/20018 of 5 February 2007, Ministry of the Economy, Development 
and Reconstruction, and Decree No.  142 of 15 March 2017, Ministry of Energy.  
109 Article  8 of Decree No.  142 of 15 March 2017.  
110 WTO Secretariat estimates based on the UN Comtrade Database.  
111 Decree with Force of Law No.  4/20018 of 5 Feb ruary 2007 and Decree No.  327 of 
10 September  1998, Ministry of Mining.  
112 Law No.  21.194 of 21 December 2019.  
113 Law No.  20.936 of 20 July 2016.  
114 Law No.  21.305 of 13 February 2021.  
115 Law No.  21.505 of 21 November 2022.  
116 Chile defines NCRE sources as wind energy, hydroelectric power (from plants with capacity of up to 
20 MW), biomass, biogas, geothermal energy, solar energy and ocean energy.  
117 Chamber of Deputies, Bulletin No.  14.755 -08, Proyecto de Ley que impulsa la participación de las 
energías reno vables en la matriz energética nacional . Viewed at: 
https://www.camara.cl/legislacion/ProyectosDeLey/tramitacion.aspx?prmID=15246&prmBOLETIN=147 55-08.  
118 Article  7 of the General Law on Electrical Services.  WT/TPR/S/451/Rev.1  
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  out through a system of concessions that can be granted for an indefinite period.119 Foreign 
companies can hold a concession, provided that they are l egally established in Chile.120 There are 
no restrictions on foreign ownership. In  2022, the three segments of the National Electricity System 
were operated by (domestic and foreign) private companies: 540 in the generation segment, 54 in 
transmission and 2 3 in distribution.121 
4.79.  The General Law on Electrical Services  restricts vertical integration to guarantee competition 
in the market. Transmission companies cannot undertake generation or distribution activities, and 
generation and distribution companies cann ot have an stake in the assets of a transmission company 
greater than 8% of the value of the national transmission system. This limit increases to 40% if the 
combined stake of generation and distribution companies is considered.122 In 2019, the separation 
of electricity sector activities was reinforced by requiring distribution companies to carry out 
distribution activities  exclusively. The Law also stipulates that cooperatives authorized to provide 
distribution services, in additio n to conducting other activities, must keep separate accounts for each 
activity.123 In addition, it guarantees any interested company access to the interconnection of 
transmission installations.124 
4.80.  Energy in Chile is supplied for the most part through the Na tional Electricity System  (SEN), 
which covers 99% of the country's installed capacity and began operations in 2017, after the 
country's two main systems were consolidated: the Central Grid System (SIC) and the Northern Grid 
(SING).125 The rest of the energy  supply comes from additional electricity systems, referred to as 
medium grids, which supply areas not covered by the SEN. In 2016, Chile also created a new 
coordinating body, the National Electricity Coordinator, as a replacement for the Economic Load 
Dispatch Centres that previously fulfilled this function for the SIC and SING.126 
4.81.  In terms of electricity pricing, Chile has three types of customers based on the connected 
load. For end customers with a connected load below or equal to 500 kW, prices are regu lated, while 
for customers with a connected load greater than 5,000 kW, prices are set by the market. Customers 
with a connected load of between 500 kW and 5,000 kW can choose either the regulated or the open 
pricing system. For "regulated customers", pric es are set by the Ministry of Energy by decree, 
following a technical report by the CNE. In 2022, "regulated customers" accounted for 40% of the 
SEN's total consumption127 and included residential and small business users. During the period 
under review, Ch ile adopted various laws on prices applicable to "regulated customers" to guarantee 
affordability and equity. For example, in 2016, Chile capped the variation in residential prices 
between the different distribution companies128 and, in 2019, established an  electricity price 
stabilization mechanism for regulated customers.129 In 2022, this mechanism was replaced by 
another that seeks to maintain prices at a certain level for regulated customers and that operates 
through a stabilization fund financed with government contributions and an additional surcharge 
paid by end customer s. This mechanism cannot extend beyond 2032.130 
4.82.  Between March 2020 and December 2021, against the backdrop of the COVID -19 pandemic, 
Chile introduced a temporary subsidy for unpaid electricity bills that was granted to residential users 
and microenterprises , among others.131 
 
119 Articles 19 and 31 of the General Law on Electrical Services. The system of concessions for 
generation by hydropower plants seeks to protect water use rights and reservoir capacity.  
120 Article  13 of the General Law on Electrical Services. In the case of na tural persons, concessions can 
only be granted to Chilean nationals.  
121 National Electricity Coordinator (2023), Reporte de Sostenibilidad 2022 . 
122 Article  7 of the General Law on Electrical Services.  
123 Article  8 ter of the General Law on Electrical Services . This Article was included pursuant to Law 
No. 21.194 of 21 December 2019.  
124 Article  120 of the General Law on Electrical Services.  
125 Ministry of Energy (2022), Anuario Estadístico de Energía 2021 . 
126 Law No.  20.936 of 20 July 2016.  
127 National Electricity Coordinator, Reportes, Estadísticas y Plataformas de Uso Frecuente – Histórico de 
Ventas de Energía . Viewed at: https://www.coordinador.cl/reportes -y-estadisticas/#Estadisticas .  
128 Law No.  20.928 of 22 June 2016.  
129 Law No.  21.185 of 2 November 2019.  
130 Law No.  21.472 of 2 August 2022.  
131 Law No.  21.423 of 11 February 2022.  WT/TPR/S/451/Rev.1  
- 136 - 
  4.2.2.3   Hydrocarbons  
4.83.  Hydrocarbons, in particular crude oil, natural gas and coal, remain the main source of primary 
energy in Chile, accounting for 65% of the Chilean energy matrix in 2021 (70% in 2015).132 Domestic 
hydrocarbon production is modes t, which is why Chile is still highly dependent on other countries for 
its supply. In 2021, Chile imported 99% of the crude oil and coal used to generate energy and 80% 
of the natural gas.133 
4.84.  With regard to Chile's imports, oil and other fuels (Chapter 27 o f the HS) are the most 
important category. In 2022, they accounted for 22.2% of total imports, totalling 
USD 23,206  million, or more than double the imported value in 2015 (USD  8,977  million). This sharp 
increase is primarily the result of a rise in the pr ice of oil and its derivatives. The main imported 
products in this category are fuels (diesel and gasoline), with 11.9% of total imports in 2022, crude 
oil (4.7%), coal (2.1%) and natural gas (2.3%). The main suppliers of these products were the 
United Sta tes and Brazil, which met 67% of the Chilean market needs that same year.134 Coal and 
natural gas are used, first and foremost, to generate electricity, while petroleum and petroleum 
products (diesel and gasoline) are used for transportation and industry.135 
4.85.  The hydrocarbon sector is regulated mainly by the Constitution, the Law on Gas Services136, 
the Law on the Fuel Price Stabilization Mechanism137, DFL No.  2 on special operation contracts for 
the exploration and exploitation of hydrocarbons138, DFL No.  1 on s tandards for activities related to 
fuels and lubricants139, and the mining legislation listed in Table  4.3. Other legal instruments 
(including various regulations) refer to, inter alia , safety and quality standards for the provision of 
services in the sector. In February and August  2017, Chile made significant changes to the Law on 
Gas Services to modernize it and improve the way this market operates.140 In 2022 and 2023, 
adjustments were also made to the fuel price stabilization mechanism in response to  fluctuations in 
international prices since 2020 (see below).  
4.86.  In accordance with the Constitution, ownership of liquid or gaseous hydrocarbons in the 
country is reserved to the State. Exploration and exploitation activities can be carried out directly 
by the State or its companies (in this case, the National Petroleum Company (ENAP)), or by natural 
or legal persons, whether Chilean or foreign, through administrative concessions (when the 
exploitation of a resource is entrusted to a private entity for a give n period) or through Special 
Petroleum Operation Contracts (CEOP).141 CEOP terms are defined on a case -by-case basis by the 
Executive and are established by supreme decree. Contracts are granted at the request of the 
interested party based on a specific pro ject, or through a national or international tender process, 
depending on the interests of the State, without there being specific periods for calls to tender.142 
The authorities stated that, as of December 2022, Chile had 14 valid CEOPs, some of which were  
carried out jointly with ENAP.  
4.87.  Chile does not have limitations on foreign involvement in fuel importation, refining, 
transportation, storage and distribution activities, but the companies concerned must meet the 
corresponding requirements, such as having quality and safety certifications and/or holding a 
concession. Public service activities related to the distribution and transportation of (natural or 
 
132 Ministry of Energy, Anuarios Estadísticos de Energía de 2016 y 2021 . 
133 Open Energy, National Energy Commission, Balance Nacional de Energía 2021 . Viewed at: 
http://energiaabierta.cl/cate gorias -estadistica/balance -energetico/ . 
134 WTO Secretariat calculations based on the UN Comtrade Database.  
135 Ministry of Energy (2022), Informe Balance Nacional de Energía 2020 . 
136 Decree with Force of Law No.  323 of 30 May 1931, Ministry of the Interior.  
137 Law No.  20.765 of 9 July 2014.  
138 Decree with Force of Law No.  2 of 30 March 1987, Ministry of Mining.  
139 Decree with Force of Law No.  1 of 14 February 1979, Ministry of Mining.  
140 Law No.  21.025 of 7 August 2017 and Law No.  20.999 of 9 February 2017, amending the Law on Gas 
Services.  
141 Article  8 of the Mining Code and Article  1 of the Decree with Force of Law  No. 2 of 30 March 1987, 
Ministry of Mining.  
142 CEOPs are administrative contracts for the provision of petroleum services. Chile Atiende, Contratos 
Especiales de Operación Petrolera . Viewed at: https://www.chileatiende.gob.cl/fichas/108554 -contratos -
especiales -de-operacion -petrolera -ceo-ps. WT/TPR/S/451/Rev.1  
- 137 - 
  liquefied) mains gas are subject to a concession that is processed by request and is granted for an 
indefinite period by the Ministry of Energy by decree.143 
4.88.  The state -owned enterprise ENAP continues to play a key role in the hydrocarbon market. It 
is the main crude oil and natural gas producer in the country and the sole fuel producer, given that 
it owns the country's three refineries. In 2020, ENAP produced 70% of the total crude oil produced 
in Chile and 77% of natural gas. In both cases, the rest came from third parties through CEOPs.144 
ENAP has two main lines of business: (i) exploration and production; an d (ii)  refining and 
marketing.145 It is also the country's sole importer of crude oil, as its refineries are almost entirely 
supplied (98.5% in 2022) with imported crude oil. Fuels can be imported by both ENAP and private 
companies. In the natural gas secto r, Chile imported around 70% of the total gas used in 2022. 
Liquefied natural gas is imported by sea and gaseous natural gas is transported via gas pipelines 
from Argentina. There are two liquefied natural gas regasification terminals in Chile.  
4.89.  The wholesa le and retail prices of liquid fuels are set freely, although the State has a price 
stabilization mechanism for the sale of certain fuels for vehicles to the public (see below). In the 
wholesale market, ENAP generally markets fuels at the import parity pri ce, i.e. the price that would 
be paid if these products were imported, while in the retail market, distributors freely set the 
consumer price, inclusive of VAT and the specific tax on fuels (IEC), where applicable (see below) . 
Freight transport companies, among other beneficiaries, can receive an IEC refund on gasoline and 
diesel.146 
4.90.  In the case of gaseous fuels, the public service prices for gas pipeline transportation and 
mains gas distribution are also set freely by each concession -holding enterprise. How ever, with 
respect to distribution, the tariffs of concession -holding enterprises have been subject to a 
profitability cap since 2017. The CNE verifies these tariffs every year and, should the cap be 
exceeded, it sets the tariffs.147 This does not apply to the Magallanes and Chilean Antarctica Region, 
which has a permanent pricing regime for the distribution of mains gas under concession. In an 
assessment carried out in 2021, the National Economic Prosecutor's Office identified "low c ompetitive 
intensity" in the natural and liquefied gas market, as well as possible risks of concerted practices 
between companies, and made various recommendations to improve the performance of the 
market.148 The authorities indicated that a draft law was s ubmitted to Congress in June 2023 to 
promote competition and improve the liquefied petroleum gas market, and that they are also 
exploring a regulatory reform for the natural gas market.  
4.91.  Chile has a price mechanism to limit or mitigate the effect of fluctua tions in the international 
oil price and in exchange rates (CLP/USD) on the domestic prices of certain vehicle fuels. This 
mechanism consists of two interconnected instruments: (i)  the IEC149; and (ii)  the Fuel Price 
Stabilization Mechanism (MEPCO). The veh icle fuels covered by these instruments are (i) gasoline, 
(ii) diesel, (iii) liquefied petroleum gas and (iv) natural gas.  
4.92.  The IEC is applied upon importation or initial marketing of these fuels in the country and has 
two components, one fixed and the othe r variable, both of which are specific to the type of fuel and 
defined in UTM150 per cubic metre. The fixed component rates did not change during the period 
under review; the rate applied to gasoline remains the highest (6 UTM/m3). In 2020, the IEC 
accounte d for around 46% of the final selling price of (93 octane) gasoline and 23% of the diesel 
 
143 Articles 3 to 7 of the Law on Gas Services.  
144 National Energy Commissio n, Estadísticas (Producción Anual de Combustibles) . Viewed at: 
https://www.cne.cl/estadisticas/hidrocarburo/ .  
145 As of 2021, the second segment also includes gas and energy activities that were formerly a 
third line of business ( ENAP (2023), Reporte Integrado 2022 ). 
146 Library of the National Congress of Chile (2021), Análisis al Impuesto específico a los Combustible s y 
al mecanismo MEPCO , Parliamentary Technical Advice.  
147 Articles 30 and 31 bis of the Law on Gas Services. A company subject to a tariff -setting regime may 
request that the Competition Tribunal exclude it from this regime under conditions established by the Tribunal.  
148 National Economic Prosecutor's Office (2021), Estudio de Mercado del Gas (EM06 -2020) , 
December  2021.  
149 Law No.  18.502 of 3 April 1986.  
150 The Monthly Tax Unit (UTM) is a unit used in Chile which has a value expressed in Chilean pesos and 
is adjusted for inflation on a monthly basis.  WT/TPR/S/451/Rev.1  
- 138 - 
  price.151 The IEC variable component is determined through MEPCO so that prices at the pump 
remain within a predefined price band (in CLP).152 The variable component ca n be negative or 
positive, which is reflected as a reduction or increase in the tax amount. This mechanism is financed 
through a fund associated with MEPCO, from which transfers are made or into which IEC receipts 
are injected, as applicable. In 2022 and 2 023, Chile made some changes to MEPCO in order to adapt 
it to the conditions of the international hydrocarbon market, including changes to the technical 
parameters used to calculate the IEC.  
4.93.  Chile also has a Fund for the Stabilization of Petroleum Prices ( FEPP)153, currently applied only 
to household kerosene, that aims to mitigate the effect of fluctuations in the international oil price 
on the domestic selling prices of this fuel through rebates or taxes, as applicable. In 2022, the 
Government injected an additional USD  40 million into this Fund to ensure its operation in response 
to higher oil prices and gave it greater operational flexibility to keep domestic prices at a certain 
level.154 The authorities stated that, as in the case of MEPCO, th e distributor is free to set fuel prices 
within the framework of the FEPP.  
4.94.  An OECD study estimated that, in 2021, support to fossil fuels through the various 
mechanisms described above rose to some USD  1,940  million, a large portion of which corresponded 
to direct transfers granted under MEPCO.155 
4.95.  During the period under review, Chile continued to promote electromobility and disincentivize 
the use of vehicle fuels. In 2017, Chile introduced a green tax on new light and medium -sized 
vehicles for private use, calculated based on the vehicle sale price and the carbon emissions per 
kilometre.156 Chile also has support programmes for the purchase of electric vehicles in the transport 
for hire sector (taxis).157 In February 2022, Congress approved the 2022 National E lectromobility 
Strategy, which establishes pillars and targets for the development of electromobility in the country 
(Section  4.2.2.1).158 
4.3  Manufacturing  
4.96.  During the period 2015 -22, the manufacturing sector's contribution (including oil refining) to 
the Chile an economy was on a downward trend, which was exacerbated in 2020 and 2021 by lower 
consumption as a result of the COVID -19 pandemic (Table 4.4).159 In 2021, manufacturing 
accounted for 8.6% of total GDP, the lowest share during the review period; in 2022, it pick up, 
reaching 9.7%, but remained below its 2015 figure (10.4%). This trend was also reflected in the 
sector's contribution to employment, which decreased from 11.2% to 9.9% between 2015 and 
2022.160 
Table 4.4 Manufacturing sector GDP, 2015 -22 
(% of manufacturing GDP)  
Sector  2015  2016  2017  2018  2019  2020 2021 2022  
Manufacturing industry  10.4 9.7 9.2 9.6 9.0 9.0 8.6 9.7 
Food 2.8 2.7 2.7 2.8 2.7 2.8 2.4 3.0 
Beverages and tobacco  1.0 0.8 0.7 0.9 0.9 0.9 0.9 0.8 
Textiles, clothing, leather and 
footwear  0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 
Wood and furniture  0.8 0.7 0.7 0.6 0.6 0.6 0.6 0.6 
 
151 Library of the National Congress of Chile (2021), Análisis al Impuesto específico a los Combustibles y 
al mecanismo MEPCO , Parliamentary Technical Advice.  
152 Law No.  20.765 of 9 July 2014 and information provided  by the authorities.  
153 Law No.  19.030, of 15 January 1991, creating the Fund for the Stabilization of Petroleum Prices.  
154 Information provided by the authorities and Law No.  21.452 of 19 May 2022.  
155 OECD (2023), OECD Inventory of Support Measures for Fossi l Fuels: Country Notes (Chile) , OECD 
Publishing, Paris. Viewed at: https://doi.org/10.1787/5a3efe65 -en. 
156 Article  8 of Law No.  20.780 of 29 September 2014.  
157 Electromobility Platform, Electromovilidad y el Estado . Viewed at: 
https://energia.go b.cl/electromovilidad/estado -y-electromovilidad . 
158 Exempt Resolution No.  8 of 24 February 2022, Ministry of Energy.  
159 Central Bank of Chile (2020), Cuentas Nacionales de Chile: Evolución de la actividad económica en el 
año 2020 . 
160 Central Bank of Chile, Base de Datos Estadísticos (Mercado laboral y demografía) . Viewed at:  
https://si3.bcentral.cl/Siete/ES/Siete/Cuadro/ CAP_EMP_REM_DEM/MN_EMP_REM_DEM13/ED_OREM3/a8b . WT/TPR/S/451/Rev.1  
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  Sector  2015  2016  2017  2018  2019  2020 2021 2022  
Cellulose, paper and printed 
matter  0.9 0.8 0.8 1.0 0.7 0.6 0.7 0.7 
Chemicals, petroleum, rubber and 
plastic  2.4 2.0 1.8 1.8 1.7 1.8 1.8 2.4 
Non-metallic minerals and bas e 
metals  0.6 0.5 0.5 0.5 0.5 0.5 0.6 0.5 
Metal products, machinery and 
equipment, other  1.8 1.8 1.8 1.7 1.7 1.7 1.5 1.6 
Source:  Central Bank of Chile.  
4.97.  The composition of the manufacturing sector has not changed since 2015 and remains closely 
linked to the performance of the mining and agricultural sectors. The sector's main activities are the 
manufacture of (i) food, (ii) fuels and chemicals, plas tics and rubber, and (iii) machinery, equipment 
and metal products. These were the only activities that recovered in 2022, after a widespread 
reduction in manufacturing activities during the review period.  
4.98.  Chile is a net importer of manufactured products.161 The manufacturing trade balance deficit 
widened in 2021 and 2022 due to an uptick in imports. In 2022, imports of manufactured products 
totalled USD  60,160  million (57.6% of total imports), while exports amounted to USD  21,716  million 
(22.3% of total exp orts).  
4.99.  Exports nevertheless outperformed imports during the period 2015 -22, growing 120%. 
Imports grew 51% during the same period. In 2022, the main manufactured exports were 
(inorganic) chemicals and wood, pulp, paper and furniture, whereas the main impor ted products 
were chemicals, transport equipment and machinery.162 The MFN tariff applied to manufactured 
products is 6%, except for 38 duty -free tariff lines that mostly refer to transport equipment.  
4.100.   During the period under review, China became the top des tination for exports of 
manufactured products, outpacing the United States. Manufacturing exports to China grew sixfold, 
reaching USD  8,413  million in 2022. These two export markets were followed by the European Union 
and the Republic of Korea. As for impo rts, the main supplier was China, followed by the European 
Union, the United States and Brazil.  
4.101.   Chile does not have an industrial policy per se , but does have a comprehensive economic 
policy that seeks to promote the country's productive development and that is drawn up by the 
Ministry of Economy, Development and Tourism. To this end, Chile continues to offer various types 
of general coverage sup port programmes and, in some cases, ones specific to the manufacturing 
sector. Support measures include tax concessions, financing, training and technical assistance, and 
are mostly administered by CORFO and ProChile. Chile also has various types of free -trade zones, 
with tax and customs benefits granted to enterprises that set up in these zones (Sections  3.2.4 
and 3.3.1).  
4.4  Services  
4.4.1   Financial services  
4.4.1.1   General characteristics and regulatory and prudential framework  
4.102.   Chile has a diversified financial sector wit h a high degree of financial intermediation. During 
the review period, Chile continued to amend its rules on banking supervision and regulation to meet 
the Basel  III criteria. International agencies are of the view that the supervisory and regulatory 
frame work is appropriate, with limited financial risks, and the banks and insurance companies are 
adequately capitalized and profitable.163 In a recent assessment of the financial system in Chile, the 
 
161 WTO definition for "non -agricultural products" , excluding petroleum, fish and fish products, and 
minerals and metals.  
162 WTO Secretariat based on the UN Comtrade Database.  
163 IMF (2023), 2022 Article  IV Consultation - Staff Report; Press Release; and Statement By The 
Executive Director for  Chile, IMF Country Report No. 36/23, January  2023. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2023/01/20/Chile -2022-Article -IV-Consultation -Press -Release -
Staff-Report -Staff-Supplement -and-528410 . WT/TPR/S/451/Rev.1  
- 140 - 
  IMF noted that the banking sector is sound, but pockets of vu lnerability should be monitored closely. 
It noted that banks' capital adequacy ratio was comfortably above the regulatory requirement (it 
stood at 15.1 % in September  2022), liquid assets accounted for about 20 % of total assets, and 
profitability had returned to pre -pandemic levels. Although non -performing loan ratios remain low 
(1.5% in September  2022), pockets of vulnerability have emerged among low -income indebted 
households, smaller firms, and in sectors more  affected by the pandemic and higher costs. A 
persistent deterioration in repayment capacity could pose credit risks to the banking sector. In view 
of the fact that the authorities intend to continue to ensure that banks hold adequate liquidity and 
provisi ons to absorb shocks, the IMF recommended a tighter monitoring of loans to real estate 
developers and the construction sector, and that banks should carefully assess the quality of credit 
exposures and maintain prudential lending standards.164 
4.103.   The financial  services market consists of the banking sector, insurance, the securities market 
and pension funds. During the review period, the supervision of the banking sector, insurance and 
the securities market fell to one entity, while pension funds were supervise d by another, separate 
entity. Chile has a highly developed and sophisticated financial sector. In 2022, the financial and 
business services sector contributed 9.2 % to GDP; the contribution of the financial services sector 
alone was 3 %. The sector provided  direct employment to 2 % of the economically active population 
in 2022. The degree of financial intermediation is high; bank credit amounted to CLP  245,495  billion 
(about USD  281 billion) and accounted for around 93 % of GDP in December  2022.165 The IMF 
estimates that the total assets of the Chilean banking system were equivalent to 146.4 % of GDP in 
2021.166 According to the Financial Market Commission (CMF), banking sector assets (banks and 
finance companies) accounted for approximately 151 % of GDP in Decembe r 2022 
(CLP 396,716  billion, excluding BCCh assets)167, while pension funds accounted for 58 % of GDP 
(CLP 151,546  billion) and insurance companies' assets 25 % (CLP 66,818  billion). According to the 
CMF estimates, the assets of the financial system totalled CLP 694,727  billion in 2022 
(USD  797 billion) and were equivalent to 2.6  times the country's GDP.  
4.104.   In order to operate in the Chilean market, foreign banking and insurance companies must 
be set up as sociedades anónimas especiales  ("special corporations") or establish branches with 
separate capital and hold the relevant authorization from the CMF. For reasons of national interest, 
authorization is required for a person to acquire more than 10 % of a bank's capital. In Chile, foreign 
insurance companies may di rectly market international maritime transport insurance, international 
commercial aviation insurance and insurance for goods in transit, but only if they are established in 
countries with which Chile has an international treaty that allows such insurance to be effected. In 
the area of insurance, shareholders holding 10 % or more of the share capital must meet certain 
requirements for voting rights.  
4.105.   At December  2022 the Chilean financial sector participants supervised by the CMF included: 
(i) 17  banks, of wh ich 16  are privately owned (four are branches of foreign banks) and 
one state-owned; 127  banking -related entities; nine savings and credit cooperatives, banking 
support services companies (SAG) and a related subsidiary; 22  payment card issuers and operator s; 
544 mutual funds; 762  investment funds; 57  general fund management companies; 290  issuers of 
publicly offered securities; two stock exchanges; one commodity exchange; 30  stockbrokers; 
seven  securities dealers; 12  commodity exchange brokers; four risk ra ting agencies; 84  external 
audit companies; one securities depository; two clearing and settlement system management 
companies; 32  public enterprises168; 67 insurance and reinsurance companies established in Chile; 
 
164 IMF (2023), 2022 Article  IV Consultation - Staff Report; Press Release; and Statement By The 
Executive Director for  Chile, IMF Country Report N°  36/23, January  2023. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2023/01/20/Chile -2022-Article -IV-Consultation -Press -Release -
Staff-Report -Staff-Supplement -and-528410 . 
165 Financial Market Commission, Informe Anual de la Comisión para el Mercado Financiero. Cierre 
estadístico a diciembre de 2022 . Viewed at: https://www.cmfchile.cl/portal/estadisticas/617 /articles -
70389_doc_pdf.pdf . 
166 IMF (2023), 2022 Article  IV Consultation - Staff Report; Press Release; and Statement By The 
Executive Director for  Chile, IMF Country Report N°  36/23, January  2023. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2023/01/20/Chile -2022-Article-IV-Consultation -Press -Release -
Staff-Report -Staff-Supplement -and-528410 . 
167 Financial Market Commission, Informe Anual de la Comisión para el Mercado Financiero. Cierre 
estadístico a diciembre de 2022 . Viewed at: https://www.cmfchile.cl/portal/estadisticas/617/articles -
70389_doc_pdf.pdf . 
168 Law No.  20.285 of 20  August  2008 and amendments thereto.  WT/TPR/S/451/Rev.1  
- 141 - 
  2,838  insurance brokers; 186  loss adjuster s; 45  reinsurance brokers; 814  annuities sales agents; 
and 14  endorsable mortgage loans brokers.169 The CMF also supervises  26 representative offices of 
foreign banks from nine countries and three branches of Chilean banks abroad.170 
4.106.   During the review period , significant changes were made to the institutional framework of 
the Chilean financial system by abolishing the Securities and Insurance Supervisory Authority and 
the Supervisory Authority for Insurance Companies, Joint Stock Companies and Trading Exchang es, 
and consolidating the supervision of the financial system under the CMF and the Pensions 
Supervisory Authority. Over 70 % of the financial assets regulated in Chile are under the supervision 
of the CMF. Its mission is to contribute to the well -being of society while ensuring the stability and 
transparency of the financial system, protecting users and facilitating the development of suitable 
services.171 
4.107.   The CMF became operational on 14  December  2017 under Law No.  21.000172, which 
replaced Decree -Law No.  3.538173, and became the legal successor to the Securities and Insurance 
Supervisory Authority and the Supervisory Authority for Insurance Companies, Joint Stock 
Companies and Trading Exchanges. In addition, Law No.  21.130174 provided that as of 1  June 2019, 
the Banks and Financial Institutions Supervisory Authority would be integrated into the CMF. In 
accordance with Decree -Law No.  3.538, it is for the CMF to monitor: (a) persons who issue or 
intermediate publicly offered securities; (b) commodity exchanges, s tock exchanges and stock 
exchange transactions; (c) securities dealer partnerships and the securities transactions they 
conduct; (d) the funds that the law subjects to CMF control and the companies that manage them; 
(e) joint stock and limited liability co mpanies subject to CMF supervision; (f) insurance and 
reinsurance companies, whatever their nature, and the dealings of insurance and reinsurance 
companies, and those of insurance intermediaries; (g) the Financial Regulatory Committee 
(see below); (h) bank ing companies, regardless of their nature, as well as companies engaged in 
the issue and operation of credit cards, prepaid cards or any other similar system; (i) savings and 
credit cooperatives; and (j) any other entity or natural or legal person that the  law places under the 
supervision of the CMF.  
4.108.   Pension fund management companies are subject to the supervision of the Pensions 
Supervisory Authority and, if incorporated as open joint stock companies, they are also subject to 
CMF supervision.  
4.109.   Financial con glomerates have a strong presence in Chile. Since the last Review and the 
creation of the CMF, there has been a move towards better assessment of the conglomerates' 
activities, as the CMF supervises several of their constituent entities and therefore is ab le to request 
more information about the conglomerates. However, there is still no law governing financial 
conglomerates per se . 
4.110.   Law No.  21.000 introduced a statutory requirement for certain financial entities to be 
self-regulating. In this regard, it prov ides that securities intermediaries, stock exchanges, 
commodity exchanges, general fund managers, and individual portfolio managers supervised by the 
CMF must self -regulate to implement good practice in corporate governance, business ethics, 
transparency a nd fair competition among the various market players. To that end, they must set up 
a Financial Regulatory Committee the purpose of which is to issue rules to achieve these objectives 
and ensure proper compliance therewith; establish and accredit complianc e with technical and 
ethical standards in respect of participants in the securities market; resolve disputes or complaints 
between its members or between its members and their customers; and promote protection for 
investors.  
 
169 Financial Market Commission (2022), Informe Anual de la Comisión para el Mercado Financiero 
respecto de su gestión durante el año 2022. Cierre estadístico a diciembre de 2022 . Viewed at: 
https://www.cmfchile.cl/portal/estadisticas/617/w3 -article -70389.html . 
170 The branches of Chilean banks abroad are: BCI - Miami branch, Banco del Estado de 
Chile - New York branch and Corpbanca - New York branch.  
171 Information from the CMF. Viewed at: https://www.cmfchile.cl/portal/principal/613/w3 -article -
23900.html . 
172 Law No.  21.000 of 23  February  2017.  
173 Decree -Law No.  3.538 of 23  December  1980, Ministry of Finance.  
174 Law No.  21.130 of 12  January  2019.  WT/TPR/S/451/Rev.1  
- 142 - 
  4.111.   By virtue of the powers vested in the Central Bank of Chile (BCCh) under the Constitutional 
Organic Law175, the BCCh  has the authority to regulate the financial system and the capital market 
(Article  35), exclusive authority to issue notes and coins (Articles  28 to  33), powers to regulate 
international exchange operations (Title  III, paragraph  8), and specific tools as set out in Article  36 
to take steps to safeguard the stability of the financial system by acting as the lender of last resort. 
The BCCh aims to ensure currency stability and the normal functioning of internal and external 
payments. In order to meet this ob jective, it must safeguard the stability of the financial system by 
means of the legal powers conferred on it, which are implemented from a macro -financial 
perspective. The BCCh directs its financial policy through joint, coordinated actions with the CMF 
that seek to contribute to financial system stability. The Informe de Estabilidad Financiera  (Financial 
Stability Report - IEF), which is published twice yearly in May and November, is one of the Bank's 
leading financial and communication policy instruments .176 
4.112.   In addition to the CMF there are other bodies involved in drawing up and implementing 
regulations. The Ministry of Finance is involved in drafting and implementing laws on the regulation 
and supervision of the financial system and actively consults the  bodies that regulate and supervise 
the local financial system. While the CMF has powers in relation to secondary regulations, the 
Ministry of Finance is the body that tables draft laws before Congress; here, the role of the CMF is 
merely to give an opinio n. The Financial Stability Council (CEF) attached to the Ministry of Finance 
and established in 2011 to ensure the integrity and soundness of the financial system, implements 
the coordination mechanisms and exchanges of information that are needed for the preventive 
management of strategic risk and the resolution of critical situations. The Council was granted legal 
status in November  2014 under Law No.  20.789; its primary objectives are to allow consolidated 
analysis of the information available concerning  activities that are subject to supervision and 
regulation with a view to appropriate management of systemic risk, to achieve  proper coordination 
between the supervisory and regulatory authorities in the joint supervision of financial 
conglomerates and the delivery of public policies in that regard, and to make relevant 
recommendations on legislative and regulatory design.177 The aim of the Capital Market Advisory 
Council, also attached to the Ministry of Finance, is to propose reforms, identify legal or regulatory 
aspects that require improvement and evaluate regulatory changes in the financial sector.178 
4.113.   The Financial Inclusion Advisory Commission was created under Decree No.  954, published 
on 20  November  2014. Its main objectives are to  advise the President of the Republic on all matters 
related to the design and formulation of a National Financial Inclusion Strategy, and on the design 
and execution of plans, measures and other activities intended to increase access and improve 
condition s for inclusion, financial education and the protection of consumer rights.179 
4.114.   Chile continues to apply a maximum interest rate to loans in national currency, known as 
the agreed maximum interest rate (TMC). The TMC does not apply to foreign currency loans that 
are payable in foreign currency. The TMC is the maximum legal interest that the lender may charge 
on loan capital. Its aim is to prevent not only excessive interest rate charges, but also the adoption 
by banks of dominant position practices.180 The cal culation of the TMC for each type of transaction 
is based on the current interest rate, as determined by the CMF, and corresponds to the weighted 
average, by amount, paid by banks established in Chile. Two systems are used to calculate the TMC: 
a general s ystem and a specific system. Under the general system the TMC is either the current 
interest rate prevailing at the time of the contract for the relevant transaction multiplied by 1.5, or 
the prevailing current interest rate plus 2  percentage points, which ever is greater. Under the special 
 
175 Law No.  18.840 of 10  October  1989.  
176 Central Bank of Chile (2023), Informe de Estabilidad Financiera. Segundo Semestre 2022 . Viewed at: 
https://www.bcentral.cl/documents/33528/3854790/IEF_2022_semestre2.pdf/26a1ca8f -635b-c36c-0854-
b11c40454057 . 
177 Information from the Ministry of Finance. Viewed at: https://www.hacienda.cl/areas -de-
trabajo/mercado -de-capitales/consej o-de-estabilidad -financiera . 
178 Information from the Ministry of Finance. Viewed at: https://www.hacienda.cl/areas -de-
trabajo/mercado -de-capitales/consejo -
consultivo#:~:text=El%20Consejo%20Consultivo%20del%20Mercado,de%20desarrollo%20del%20mercado%
20financiero . 
179 Ministry of Finance Decree No.  954 of 20  November  2014 and amendments thereto.  
180 Holz, Mauricio (2022), Tasa Máxima Convencional, tasa de interés corriente y su relación con la Tasa 
de Política Monetaria . Library of the National Congress of Chile, Parliamentary Technical Advisory Service, 
No. SUP: 133.227, May  2022. Viewed at: 
https://obtienearchivo.bcn.cl/obtienearchivo ?id=repositorio/10221/33238/1/BCN_Tasa_Maxima_Mayo_2022_F
inal.pdf . WT/TPR/S/451/Rev.1  
- 143 - 
  system that applies to small loans of between 0  UF and 200  UF, the TMC is the same as the interest 
rate on loans (non -indexed transactions denominated in national currency, for terms equal to or 
greater than 90  days) of b etween 200  UF and 5,000  UF plus (a)  21 percentage points for amounts 
equal to or less than 50  UF, and (b)  14 percentage points for amounts greater than 50  UF and less 
than 200  UF.181 The TMCs are published by the CMF. All financial institutions that provide  consumer 
credit, including credit card companies, must comply with these maximum rates. The TMCs also 
apply to individuals.  
4.115.   Another significant milestone during the review period was the introduction of fintech 
legislation. The aim of the Law promoting Fi nancial Competition and Inclusion through Innovation 
and Technology in the Provision of Financial Services (the Fintech Law)182 is to establish a general 
framework to incentivize the provision of financial services by technological means "based on the 
principles of financial inclusion and innovation, the promotion of competition, financial customer 
protection, appropriate safeguards for processed data, the maintenance of financial stability and 
integrity and the prevention of money -laundering, the prevention  of the financing of drugs trafficking 
and the prevention of the financing of terrorism, with which all parties covered by the Law must 
comply" (Article  1). The Law establishes that the provision of those services is subject to CMF 
supervision. Technology -based financial services the provision of which is governed by the Law 
include: (a) crowdfunding platforms, (b) the operation of alternative trading systems, (c) credit and 
investment advice, (d) custody of financial instruments and (e) order routing and f inancial 
instrument intermediation.  
4.116.   Under Article  5 of the Fintech Law, entry in the CMF Register of Financial Service Providers 
is required in order to be able to provide regulated services. Legal persons entered in the Register 
whose activities have been  authorized by the CMF may provide one or more of the services referred 
to above and must keep information available to the public and on their website concerning the type 
of activity or service they are authorized to perform. International businesses prov iding those 
services must be domiciled in Chile. Only those legal persons whose sole line of business is the 
provision of one or more of the services referred to in the previous paragraph may be registered 
and therefore may provide the regulated services, without prejudice to the entities exempt from the 
requirement to be entered in the Register.183 
4.117.   Before they can begin providing services, providers must obtain authorization from the CMF, 
for which the CMF itself has laid down a procedure in an instrument o f a general nature. To receive 
authorization, prospective providers must satisfy certain general requirements, such as having the 
necessary systems and procedures in place to comply with the information and publicity 
requirements established in the Law, an d fulfil the obligations concerning corporate governance and 
risk management set out in Article  12 of the Law.184 There are also more specific requirements 
depending on the type of service concerned. For example, in order to be eligible for authorization to  
provide alternative trading system services, applicants must have the operational capacity to process 
the transactions performed through their systems or infrastructure, and have internal regulations to 
ensure that there is a fair, competitive, orderly an d transparent secondary financial instruments 
market to promote appropriate price formation and enable best execution of their users' orders. 
Entities that provide services in intermediation or custody of financial instruments must at all times 
have a mini mum net worth equal to or greater than the larger of (a)  5,000  UF, or (b)  3% of the 
 
181 Law No.  18.010 of 27  June 1981 and amendments thereto.  
182 Law No.  21.521 of 4  January  2023.  
183 Certain entities already under CMF supervision are exempt from the requirement to register in order 
to provide the services mentioned. For example, securities intermediaries and commodities exchanges and 
brokers may provide services through crowdfunding platforms and alternative trading systems, as well as order 
routing and financial instrument intermediation without the need for registration. General fund management 
companies may provide the order routing service, and banks the services of routing orders and intermediation 
of financial instruments, as well as the  services of intermediation and custody of financial instruments. The 
financial instrument custody service may also be provided by securities intermediaries, commodities brokers 
and commodities exchanges. Credit rating agencies may provide credit advisory services without need of 
further registration, while investment advice may be provided by securities intermediaries, general fund 
managers and portfolio managers, banks, insurance and reinsurance companies and commodities brokers.  
184 Article  12 (Corporate g overnance and risk management) states that those entered in the Register 
must design, approve and implement policies, procedures and controls that adjust their financial and economic 
viability in line with their capacity for appropriate strategic responses  to the risks inherent in their lines of 
business. It is for the CMF to lay down standards on corporate governance and risk management, including 
cybersecurity and data security aspects.  WT/TPR/S/451/Rev.1  
- 144 - 
  financial and operational risk -weighted assets of the entity – that percentage may be increased to 
6% by the CMF on the basis of its risk -management assessment of the entit y. 
4.118.   The Fintech Law also provides for an Open Finance System that aims to promote competition, 
innovation and inclusion in the financial system. With customers' express consent, financial 
information can be exchanged among participating service providers. B anks and issuers of credit 
cards, prepaid cards or any other similar system must participate in the Open Finance System as 
institutions supplying information. The participation of institutions supplying information in the Open 
Finance System entails an obl igation to provide access to and deliver any information covered by 
the Fintech Law that is requested by information -based service providers under the terms and 
conditions laid down in that law.  
4.119.   The Open Finance System will apply to the financial instituti ons, products and services, types 
of data and services referred to in the Law subject to the terms and conditions laid down in the 
regulations issued to that effect by the Commission. In the performance of their duties and 
obligations, the institutions par ticipating in the Open Finance System must abide by the principles 
of proportionality, quality, transparency and customer information, data security and privacy, 
non-discrimination and interoperability across participating institutions. The Law empowers th e CMF 
to regulate and give the guidance necessary for appropriate implementation and operation of the 
Open Finance System, and to oversee compliance with the obligations incumbent on the participating 
institutions.  
4.120.   In accordance with Decree -Law No.  3.475 o f 1980 amending the Law on Stamps and Stamp 
Duty contained in Decree -Law No.  619 of 1974, certain credit transactions are taxable. Unpaid 
cheques referred to drawer are subject to a tax of 1 % of the amount of the cheque subject to a 
minimum of CLP  4,968 an d a maximum of one UTM.185 Bills of exchange and promissory notes, 
payment orders, simple or documentary credits or any other document pertaining to credit 
operations are subject to a tax of 0.066 % on the amount thereof for each month or part thereof 
that h as elapsed since the document was issued and the due date; the rate ultimately applied may 
not exceed 0.8 %. Also subject to payment of the tax are the delivery of invoices or bills for collection 
to banking and financial institutions, the delivery of money  loaned at interest – except where the 
depositor is a bank, secured loans, loans or other operations where money is credited by means of 
bills or promissory notes by banks and financial institutions and bank -discounted bills, bank loans 
made on special acc ount and the issuance of bonds and debentures of any nature. Instruments and 
documents pertaining to credit operations using demand deposits or without a maturity date are 
taxable at a rate of 0.332 % of the amount concerned.  
4.121.   Some of Chile's international a greements contain special chapters on financial services, 
including the agreements with Japan; Australia; the European  Union; the United  States; the 
United  Kingdom; Canada; Hong  Kong, China; the Pacific Alliance; Thailand; and the Comprehensive 
and Progres sive Agreement for Trans -Pacific Partnership (CPTPP).  
4.4.1.2   Banking sector  
4.4.1.2.1   General characteristics  
4.122.   At December  2022, the assets of the Chilean banking system were valued at 
USD 461,561  million, equivalent to 151 % of GDP, while total deposits amounted to 
USD 218.244 million (CLP  190,381  billion), or 73 % of GDP. On the same date, the Chilean banking 
system comprised eight locally owned banks, nine foreign -owned banks and one state -owned bank 
(BancoEstado). The banks under foreign ownership held about 42 % of total a ssets, while the locally 
owned banks held 44 % and the state -owned bank 14 %.186 At the end of 2022, there were 
26 representative offices of foreign banks operating in Chile.  
 
185 Exempt Decree No.  224, published on 1  July 2023.  
186 Financial Market Commission, Reporte Mensual de Información Financiera del Sistema Bancario, 
December  2022 and March  2023. Viewed at: https://www.cmfchile.cl/portal/e stadisticas/617/w3 -
propertyvalue -28911.html . WT/TPR/S/451/Rev.1  
- 145 - 
  4.123.   At March  2023, the five largest banks accounted for 76.8 % of total assets.187 The sol vency 
and profitability indicators for the Chilean banking system are sound: at March  2023, the system 
had a return on equity (ROE) of 14.83 % after tax (18.79 % pre-tax).188 At the same date, the 
average return on assets (ROA) after tax was 1.06 % (1.33 % pre-tax). The loan provisions index 
was 2.55 % in March  2023, while the non -performing loans index (90  days or more past due) stood 
at 1.84 %. The operating costs to operating i ncome efficiency indicator was 43.30 %, while the 
operating costs to assets ratio was 1.70 %. The loan provisions index was 2.52 %. 
4.4.1.2.2   Legal and institutional framework  
4.124.   The main bodies responsible for regulating the banking system are the Financial Market 
Commis sion (CMF) and the Central Bank of Chile (BCCh). The CMF is charged with supervising banks 
and other financial institutions.189 The BCCh establishes the technical reserve requirement for banks 
and the collateral and guarantee levels for foreign exchange tra nsactions.  
4.125.   The primary legislation on the banking sector is the General Law on Banks (LGB).190 Since 
the last review, some significant changes have been made to banking law, such as those contained 
in Law No.  21.000 creating the CMF and the Fintech Law.  
4.126.   The LGB provides that in order to be able to operate in Chile, banks must be established as 
closed corporations or, in the case of branches, as agencies of foreign corporations. For a bank to 
become established in Chile  it must have authorization from the CMF. Once the CMF has established 
that the bank complies with a number of requirements it will issue a banking licence. To be able to 
obtain a banking licence the bank seeking authorization must provide the CMF with a prospectus, a 
business plan for the fi rst three years and a guarantee of 10 % of the capital of the proposed banking 
institution. Under the legislation, verification of the solvency and integrity of the founding 
shareholders is an essential requirement for the approval of a licence application.  In relation to 
solvency, the LGB provides that the founding shareholders of a bank must have a consolidated net 
worth equivalent to the proposed investment, that is, a minimum of 800,000  UF (approximately 
USD 72 million). At the time when a bank is grante d its charter or a branch of a foreign bank is 
authorized to operate, 50 % of the minimum capital must be paid up. Until the bank has achieved 
the minimum capital of 800,000  UF, it must maintain an effective equity of not less than 12 % of its 
risk-weighted assets. That proportion drops to 10 % once it has an effective equity of 600,000  UF. 
To meet the integrity requirement, the founding shareholders must be able to show that they have 
not engaged in any serious or repeated fraudulent or negligent behaviour th at might jeopardize the 
stability of the prospective institution or the security of its depositors, among other requirements. 
The CMF verifies compliance with the above -mentioned criteria and examines the applications it 
receives individually, while in add ition the BCCh may comment on the potential effects that the 
authorization of new banks may have on the stability of the financial system.  
4.127.   Where an application is rejected, the CMF must issue a reasoned decision within 180  days 
stating that the shareholder s do not meet the prescribed requirements. Failure of the CMF to issue 
a decision to refuse a licence within that time limit will be interpreted as tacit approval and the 
licence will be deemed to have been granted. In exceptional circumstances the CMF may , once only, 
suspend its decision on the prospectus for a further period of 180  days.  
4.128.   The Chilean banking sector is open to foreign investment. There are no restrictions in law 
on the number of banking entities that a foreign investor can control. However,  the prior 
authorization of the CMF is required for a person to be able to acquire, whether directly or through 
third parties, more than 10 % of a bank's capital.191 In that event, the share acquisition is subject to 
the integrity and solvency requirements t hat apply for establishing a new banking entity.  
 
187 Namely the Banco de Crédito e Inversiones (18.9 %), Banco Santander -Chile (15.9 %), Banco de 
Chile (15.2 %), BancoEstado (13.4 %) and Scotiabank Chile (13.3 %). Financial Market Commission, Reporte 
Mensual de Información Financiera del Sistema Bancario, March  2023. Viewed at: 
https://www.cmfchile.cl/portal/estadisticas/617/w3 -propertyvalue -28911.html . 
188 Financial Market Commission, Reporte Mensual de Información Financiera del Sistema Bancario, 
March  2023. Viewed at: https://www.cmfchile.cl/portal/estadisticas/617/w3 -propertyvalue -28911.html . 
189 The Statute of the CMF is set out in Title  I of the General Law on Banks, as amended by 
Law No. 21.000 establishing the CMF.  
190 Decree with Force of Law No.  3 of 19  December  1997 and amendments thereto, Ministry of Finance.  
191 Article  36 of the LGB.  WT/TPR/S/451/Rev.1  
- 146 - 
  4.129.   Foreign banks may become established in Chile by opening a subsidiary (set up as a Chilean 
closed corporation), by holding shares in an existing Chilean bank or by setting up a branch with 
separate capital. The capital and reserves that foreign banks allocate to their branches must be 
effectively invested in the country and converted into the national currency. Once established in 
Chile, branches of foreign banks are subject to the same rules and requirements  as domestic banks 
and may engage in the same activities, including tapping funds in the local market. There are no 
restrictions on the number of branches of foreign banks that can operate in the country.  
4.130.   In accordance with the LGB, financial institutions incorporated abroad that seek to 
participate meaningfully in the creation or acquisition of shares in a Chilean bank or to establish a 
branch, may only be authorized by the CMF to the extent that they are authorized to operate in their 
country of origin, w here that country is able to adequately supervise the risks of their operations 
and allows the reciprocal exchange of relevant information concerning such entities, or where the 
entities meet the Basel Committee's standards. Where companies do not report t o a supervisory 
body or are not required to deliver such information to that body, the information must be signed 
off by internationally reputable external auditors.  
4.131.   Foreign banks may also maintain a representative office in Chile, subject to CMF 
authoriza tion. Representative offices may not engage in banking activities in Chile, but may advertise 
the products or loan services of their parent company. The LGB allows Chilean banks to carry on 
activities abroad, provided that they comply with minimum capital adequacy requirements and the 
country in which they operate provides for adequate supervision. Chilean nationals and residents of 
Chile may make deposits in and obtain loans from banks located abroad. The cross -border supply of 
banking services is not perm itted.  
4.132.   The formation of financial conglomerates is permitted although there are no specific 
regulations in that regard. Banks established in Chile, whether Chilean or foreign -owned, may set 
up companies that provide banking support services and hold shares  in them, as well as in 
subsidiaries that offer various financial services; they may also have specified minority 
shareholdings.192 By law, banks may not participate in conglomerates that include activities other 
than the financial services specifically ide ntified in the LGB. Banks may not hold shares in insurance 
companies, industrial enterprises, commercial enterprises or public utility enterprises, among others.  
4.133.   Under the LGB (Title  XV, paragraph  3), bank deposits are guaranteed by the State. The state 
guarantee relates to deposit liabilities and term acceptances by way of savings accounts, or 
registered instruments or bearer instruments, issued by banks to natural persons only. The 
guarantee covers 100 % of the sum of all liabilities that an institution ha s with a natural person up 
to a limit set under the LGB in the event of compulsory liquidation of a bank. The limits of the 
guarantee extend to all deposits that a creditor holds in a bank. The maximum amount guaranteed 
in any one bank is 200  UF (shy of US D 7,000) per calendar year. The total amount of the benefit for 
a single beneficiary may not exceed 400  UF in each calendar year. For legal persons (profit - and 
non-profit -making institutions) the state guarantee does not cover term deposits, savings accou nt 
balances or registered or bearer instruments. Sight deposits and liabilities have 100 % coverage in 
the event of compulsory liquidation of a bank, regardless of whether the holder is a natural or legal 
person.  
4.134.   The reformed LGB sets out general guidelines  for establishing a system for capital adequacy 
in line with the international Basel  III standards, while Decree -Law No.  3.538 empowers the CMF to 
draft prudential standards. In conformity with Decree -Law No.  3.358, the issuance of these 
standards must be approved by the CMF Council following a public consultation process and the 
publication of a regulatory impact report, and by regulatory coordination agencies in conformity with 
the transparency standards referred to in the Organic Law on the Financial Mar ket Commission. 
During the review period, the CMF initiated the regulatory process to implement the Basel III 
standards in Chile. During the previous review in 2015, the authorities indicated that effective 
implementation of the Basel  II and Basel  III prin ciples on capital adequacy would require 
 
192 The services identified by the LGB include: mutual fund, investment fund or foreign capital fund 
management; securities agents; financial advisory services; loan recovery and advisory services relating to the 
pensions system; stock exchange brokers; insurance brokers; securities custody; factoring; leasing operations; 
and asset securitization.  WT/TPR/S/451/Rev.1  
- 147 - 
  amendment of the General Law on Banks; the amendment was made during the review period 
through the reforms made to that Law.  
4.135.   In implementing the Basel  III standards, in January  2022 the CMF published a standard on 
evaluating the adequacy of bank liquidity positions. The standard lays down the general framework 
for assessing the adequacy of bank liquidity and establishes the possibility of determining additional 
requirements for high -quality liquid assets. The standar d is based on the principles concerning 
liquidity risk management and the process for assessing internal capital adequacy under the most 
recent Basel Committee Accord. According to the authorities, the standard also draws on the internal 
capital adequacy a ssessment process (ILAAP) proposed by the European Banking Authority and the 
guides published in that regard by the European Central Bank. In their view, the result is that the 
best international practice has been incorporated into the Chilean banking syst em. The standard 
broadens the CMF's powers to place additional liquidity charges on specific entities where their 
specific circumstances so warrant as a result of the economic situation. Before the standard was 
published, the CMF was not authorized to plac e higher liquid asset requirements on banking firms 
where the supervisory assessment had found low liquidity levels or inadequate management.193 The 
regulations entered into force in April  2023 when the banks had to send an initial Self -Assessment 
Liquidity  Report (IAL); full implementation of the areas included in the regulations is required from 
April 2025.194 
4.136.   In line with the Basel  III standards implementation process, the CMF reports periodically on 
the annual ratings of systemically important banks and i mposes additional requirements in 
accordance with the provisions of the LGB and its implementing regulations on identifying systemic 
banks as set out in Chapter  21-11 of the Updated Compendium of Regulations. The regulations 
published by the CMF to impleme nt the Basel  III standards in Chile include the construction of an 
index of systemic importance by entity. The index considers the four factors that reflect the impact 
that a bank's financial deterioration or potential insolvency would have on the operatio n of the 
financial system. The factors in question are: bank size, interconnectedness vis-à-vis other financial 
institutions, the bank's degree of substitutability as a provider of financial services, and its business, 
structural and operational complexity . The score produced by the indicator -based measurement is 
used to establish thresholds for additional requirements, in accordance with the LGB.  
4.137.   For example, in March  2023, using the information reported by the banking entities up to 
December  2022, and, ha ving obtained prior agreement from the BCCh, the CMF deemed six banks 
systemically important in  2022 (unchanged from  2021), namely Banco de Chile, Banco de Crédito e 
Inversiones, Banco del Estado de Chile, Banco Santander -Chile, Itaú Corpbanca and Scotiaba nk 
Chile. Identification as a systemically important bank entails additional tier  1 capital maintenance 
requirements. The additional requirements are determined by the CMF in consultation with the BCCh 
and in 2022 were: 1 % for Itaú Corpbanca, 1.25 % for Ban co de Chile, Banco del Estado de Chile and 
Scotiabank Chile, 1.5 % for Banco Santander Chile, and 1.75 % for Banco de Crédito e Inversiones.195 
The higher requirements are being implemented gradually, and, as a result, 50 % of tier  1 capital 
charge must be in place by December  2023. The additional tier  1 capital requirements for banks 
identified as systemically important were determined in March  2022.196 
 
193 The amendment to the regulations introduced a new Chapter  21-14 to the CMF Updated 
Compendium of Regulations (RAN), which identifies two processes: (a)  the internal capital adequacy 
assessment process, in which each bank determines the liquidity adequacy level necessary to cover its liquidity 
risk wit h a horizon of at least one year, and (b)  the annual CMF assessment on banks' liquidity adequacy, the 
objective of which is to support their liquidity risk profiles.  
194 CMF, Estándares de Basilea III, CMF publica norma sobre la evaluación de la suficiencia de la 
posición de liquidez de los bancos, 16 January  2023. Viewed at: 
https://www.cmfchile .cl/portal/prensa/615/articles -60238_doc_pdf.pdf . 
195 CMF, Estándares de Basilea III, CMF informa sobre la calificación anual de bancos de importancia 
sistémica y fija exigencias. Press release, 31  March  2023. Viewed at: 
https://www.cmfchile.cl/portal/prensa/615/articles -68422_doc_pdf.pdf . 
196 CMF, La Comisión para el Mercado Financiero (CMF) informa que su Co nsejo aprobó la resolución 
N° 2319 la sobre la calificación anual correspondiente a los bancos de importancia sistémica en Chile y las 
exigencias adicionales para ellos . Press and presentations, 31  March  2023. Viewed at: 
https://www.cmfchile.cl/portal/prensa/615/w3 -article -68422.html . WT/TPR/S/451/Rev.1  
- 148 - 
  4.138.   In its Schedule of Specific Commitments included in the Fifth Protocol annexed to the GATS, 
Chile does not im pose any market access or national treatment limitations as regards commercial 
presence for providing core and complementary banking services.197 
4.4.1.3   Insurance  
4.4.1.3.1   General characteristics  
4.139.   At May  2023, there were 65  insurance companies in total, of which 25  were general 
insurance companies, 32  were life insurance companies and eight were credit insurance and 
guarantee companies.198 Life insurers have the largest market share, with around two thirds of 
premiums at September  2022. Foreign -owned companies hold substan tial stakes in both groups of 
insurance companies: around 85 % in the general insurance market and 39 % for the companies 
offering life insurance.  
4.140.   At December  2022, the insurance market was also composed of 67  insurance and 
reinsurance companies established in Chile, 45  reinsurance brokers, 186  loss adjusters, 
2,838  insurance brokers, and 14  endorsable mortgage loan managers.199 In general, the life 
insurance companies are constituent entities of financial conglomerates.  
4.141.   Sales by life insurance companies in th e third quarter of  2022 (premiums) amounted to 
CLP 5,246  billion (USD  6,624  million), representing a real increase of 18.7 % compared to the same 
period in  2021 and equivalent to 2.2 % of GDP. Among all sales in the third quarter of that year, 
59.7% were for  social security -related insurance, followed by banking and retail insurance (14.8 %) 
and individual insurance (14.5 %).200 General insurance company premiums totalled 
CLP 3,318,900  million at September  2022 (around USD  4,190  Million), of which 40.6 % was for 
insurance premiums for property damage insurance, 25.5 % for premiums for other damage to 
property, 9 % for civil liability, 4.2 % for transport, 4.0 % for engineering, 4.7 % for guarantee and 
credit insurance, 4.1 % for health and personal accident, and 7.7 % for other insurance.  
4.142.   Insurance companies' assets rose during the review period: at December  2022 they 
amounted to USD  77,739  million (compared to USD  46.328  million in 2015) and represented 25 % 
of GDP in that yea r (20.9 % in 2015).201 The net worth of the insurance companies rose from 
USD 5,243  million in 2015 to USD  7,578  million in 2022 (USD  1,536  million in general insurance 
companies and USD  6,042  million in life insurance companies).202 In 2022, Chilean -owned 
companies held 96 % of the net worth, while foreign companies owned 4 %. Moreover, Chilean -owned 
companies held 67 % of the net worth in life insurance companies and 17 % of the net worth in 
general insurance companies, while foreign companies held 17 % and 83 % respectively.  
4.4.1.3.2   Legal and institutional framework  
4.143.   The Financial Market Commission (CMF) is responsible for supervising the activities and 
entities involved in the Chilean securities and insurance market.  
4.144.   The Insurance Law203 is the principal legislative text g overning the insurance industry. The 
Commercial Code (rules on insurance contracts), Decree -Law No  1.092 of 1975 on mutual insurance 
societies, Law No.  18.490 of 1986 on compulsory personal accident insurance (SOAP) and other 
bodies of law governing compul sory insurance also apply.  
 
197 WTO documents GATS/SC/18 of 15  April 1994 and GATS/SC/18/Suppl.3 of 26  February  1998.  
198 Information from the CM F. Viewed at: https://www.cmfchile.cl/portal/principal/613/articles -
61235_recurso_1.pdf . 
199 CMF, Informe Anual 2022 . Viewed at: https://www.cmfchile.cl/portal/estadisticas/617/articles -
70389_doc_pdf.pdf . 
200 CMF, Informe Financiero del Mercado Asegurador, September  2022. Viewed at: 
https://www.cmfchile.cl/portal/principal/613/articles -61235_recurso_1.pdf . 
201 Information from the CMF. Vie wed at: https://www.cmfchile.cl/portal/principal/613/articles -
15337_recurso_1.xls . 
202 Information from the CMF. Viewed at: https://www.cmfchile.cl/portal/principal/613/articles -
15338_recurso_1.xls . 
203 Decree with Force of Law No.  251 of 22  May 1931 and amendments th ereto, Ministry of Finance.  WT/TPR/S/451/Rev.1  
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  4.145.   The CMF supervises the insurance and reinsurance sector. CMF authorization is required to 
establish an insurance or reinsurance company in Chile. The company concerned must be legally 
incorporated in Chile in conformity with the Law on Public Limited Companies or established as a 
branch with separate capital; it must also be entered in the Register of Commerce and must publish 
its CMF authorization in the Official Journal. A company must be established in Chile in order to be 
able to provide insurance services in the country. Foreign insurance companies may also maintain 
a representative office in Chile. Branches of foreign companies have the same rights and obligations 
as domestic insurance companies and their activities are not r estricted to any area of insurance in 
particular. There are no restrictions on the number of branches that foreign insurance companies 
may establish in Chile.  
4.146.   Generally the law reserves the pursuit of insurance and reinsurance activities in Chile to 
compan ies incorporated in Chile for that sole purpose, save for some exceptions expressly provided 
for in law. Foreign insurers may provide or take out insurance policies in Chile as long as they are 
established in the country. Violation of that prohibition cons titutes an offence. Despite that fact, any 
natural or legal person may freely enter into insurance contracts abroad. Without prejudice to the 
foregoing, insurance mandated by law and insurance relating to disability, dependants' benefits and 
life annuities  may not be taken out abroad.  
4.147.   Insurance and reinsurance companies must be set up as Chilean corporations with minimum 
capital of 90,000  UF (USD  3,065,760) for life insurance or 120,000  UF (USD  4,807,800) for general 
insurance. A company may not jointly tra nsact insurance business in the first group (insurance 
against risk of loss or damage to goods or property) and second group (personal insurance or 
insurance that guarantees a capital sum or an income during or at the end of a certain term). 
Personal accid ent and health may be insured by first - or second -group companies. Credit risks must 
be insured with a first -group insurance company whose sole purpose is to cover that type of risk; 
first-group companies are also permitted to cover guaranty and fidelity r isks. Moreover, insurance 
companies may only reinsure risks in the same group as that in which they are authorized to operate.  
4.148.   Despite having to be incorporated as separate entities, a  life insurance company and a 
general insurance company may belong to th e same group (through a holding). The time limits for 
obtaining a reply to an application for establishment vary according to the type of insurance company 
the applicant is seeking to establish. The limit for general insurance companies is 60 days, after 
which the applicant may request a ruling from the CMF, which then has five days in which to decide. 
Under the Insurance Law, if there is no reply, the application is deemed to have been rejected. 
Where life insurance is concerned, the CMF has 90 days within  which to process an application; in 
this case, if the CMF fails to notify its decision, the licence is deemed to have been granted.  
4.149.   Insurers are required at all times to maintain sufficient risk capital to cover their leverage 
ratio, solvency margin and t he minimum net worth referred to above. The solvency margin is 
determined by taking into account the volume of direct premiums and average losses. For companies 
in the first group the total debt ceiling may not be more than five times greater than their ne t worth, 
and for companies in the second group not more than 15  times greater. If an insurer or reinsurer 
breaks the law, the regulatory standards or its own statutes, the CMF may apply sanctions such as 
a censure or reprimand, a fine, suspension of the bo ard for up to six months, suspension of all or 
certain operations for up to six months or revocation of authorization to exist.  
4.150.   Contracts concluded in Chile may be reinsured with insurance and reinsurance companies 
incorporated and authorized to operate in  Chile. Reinsurance entities incorporated in Chile may only 
reinsure risks in either the first group or the second group, unless they have independent, separate 
capital and accounts for each group, in which case they may operate in both. Foreign reinsuranc e 
entities are authorized to conduct reinsurance operations in Chile if they satisfy the following 
requirements: (a)  hold a rating of BBB or equivalent from rating agencies of international repute, 
(b) appoint a representative in Chile or, failing that, co nduct reinsurance through a reinsurance 
broker registered with the CMF.  
4.151.   The legislation allows reinsurance intermediaries or brokers, whether Chilean or foreign, to 
provide reinsurance provided that they satisfy certain requirements, including (a)  being en tered in 
the Register held by the CMF, and (b)  taking out an insurance policy with no deductibles for an 
amount of no less than 20,000  UF (USD  681,300) or one third of the intermediated premium of the 
prior year, whichever is higher. Foreign reinsurers mus t be legal persons legally incorporated in their WT/TPR/S/451/Rev.1  
- 150 - 
  country of origin, with capacity to intermediate risks ceded from abroad and pay claims in freely 
convertible currency. Natural persons must have Chilean nationality or be established in Chile.  
4.152.   Insurers and reinsurers established in Chile must make technical reserves as follows: 
(a) reserve for unexpired risks to cover liabilities arising from premiums for short -term insurance 
contracts, (b)  mathematical reserve to cover the liabilities of a second -group comp any vis-à-vis the 
parties insured arising under or in connection with long -term insurance contracts, (c)  reserve for 
claims, (d)  reserve additional to the reserve for unexpired risks to cover risks of claims for unknown, 
highly fluctuating, cyclical or cat astrophic loss, (e)  equalization reserve to cover risks arising from 
mismatches in maturity, interest rate, currency and investment instruments, between the company's 
assets and liabilities, and (f)  fund value reserve to cover the liabilities generated by accounts 
investing in the relevant second -group insurance.  
4.153.   Insurers' and reinsurers' technical reserves and risk capital must be covered by fixed -return 
investments (such as securities issued or guaranteed by the State or issued by the BCCh, term 
deposits,  mortgage notes, bonds and other credit or debt instruments, endorsable mortgage loans); 
variable -return investments (shares in open joint stock companies and companies granted 
concessions for public infrastructure works, shares in mutual funds and investm ent funds); 
investments abroad (credit or debt instruments issued or guaranteed by foreign States or Central 
Banks, deposits, bonds, promissory notes and other credit or debt instruments issued by foreign or 
international financial institutions or business es, shares in companies or corporations established 
outside Chile, among others); other assets (unexpired credit extended to insured parties by way of 
unearned premiums), outstanding recoverable claims up to an amount not exceeding 10 % of the 
risk capital,  unexpired credit by way of premiums from disability and dependants' insurance, credit 
from their life insurance policy holders up to an amount not exceeding the surrender value of the 
policies, among others; and financial derivatives up to an amount not e xceeding 3 % of the technical 
reserves and risk capital of the companies concerned. Investment in the various types of instruments 
or assets representing technical reserves and risk capital is subject to maximum limits. Moreover, 
the law authorizes insuranc e companies to invest a maximum of 20 % of their technical reserves and 
risk capital in instruments and assets abroad.  
4.154.   Models of the policies and clauses entered into by the insurers must have been incorporated 
in advance into the Policy Deposit held by the  CMF, with the exception of marine and aircraft hull 
insurance, and insurance contracts where both the insured and the beneficiary are legal persons and 
the amount of the agreed annual premium is not less than 200  UF. Exceptionally, some policies must 
have the prior approval of the regulator (for example, policies related to social security matters). 
Insurance premiums are set freely by insurers. The law provides that the amount of the insurance 
premiums and claims must be expressed in UF unless the contrac t is in foreign currency. 
Intermediation commissions are also agreed freely between the insurer and the insurance broker. 
Insurers and reinsurers are required by law to tell the CMF and the general public any essential 
information about themselves and thei r businesses.  
4.155.   The law requires insurance companies to engage at least two rating agencies that are 
independent of each other and registered in a special register held by the CMF. Insurance may be 
taken out directly with insurance entities, through their sa les agents or through independent 
insurance brokers. Sales agents must be registered in a special register and may be subject to the 
same requirements as insurance brokers. Violations, errors or omissions that sales agents may 
commit in the performance of their activities are the responsibility of the insuring entity. In order to 
operate, insurance brokers must be entered in the CMF Register and meet the requirements laid 
down in the prevailing legislation. The law allows mutual entities incorporated before  October  1987 
to provide first - or second -group insurance in Chile to members of the armed forces and the national 
police force, but prohibits the incorporation of new mutual entities.  
4.156.   The activities of insurance companies are subject to VAT, which applies  to all insurance policy 
premiums at a rate of 18 % with the following exceptions: (a)  indexed life insurance policy premiums, 
(b) import and export risk premiums, (c)  vessel hull insurance premiums (d)  premiums for risks 
outside Chile, (e)  premiums for ins urance against the risk of earthquake, (f)  reinsurance contract 
premiums, and (g)  premiums for compulsory insurance against personal accident caused by motor 
vehicles. Insurance taken out abroad is subject to a tax of 22 % on the premium; for reinsurance 
with companies that are not established in Chile, the tax is 2 % and is calculated on the premium 
ceded without any deduction. Premiums from shipping activity, air navigation and export credit WT/TPR/S/451/Rev.1  
- 151 - 
  insurance and reinsurance are exempt from the tax. Insurance and r einsurance entities are also 
subject to First Category Income Tax equivalent to 15 %. 
4.157.   Chile adheres to the principle of insuring risks in the country in which they arise and not 
abroad, except for international maritime transport insurance, international co mmercial aviation 
insurance and insurance for goods in transit, which may be provided by foreign insurance companies 
established in a trading partner with which Chile has an international treaty in force that permits 
such insurance to be effected. This is the case with the treaties concluded with the United  States; 
the European  Union; Japan; Australia; the Pacific Alliance; Hong  Kong, China; and the CPTPP.  
4.158.   Chile's commitments under the GATS are more restrictive than its practice. For example, 
they stipulate  that insurance services may only be provided by companies incorporated in Chile that 
offer life or general insurance, although the establishment of branches has been permitted 
since 2007.204 Chile has not submitted a revised financial services offer to the  WTO. The respective 
financial services chapters of some of the RTAs signed by Chile include provisions on insurance; 
other agreements envisage future negotiations with a view to their inclusion.  
4.4.1.4   Pension funds  
4.4.1.4.1   General characteristics  
4.159.   The pensions system in Chile, which represents a significant share of the country's financial 
system, is a compulsory individual capital account system designed to receive the social security 
savings of the affiliated workers, who must each month pay 10 % of their wages  into a personal 
account with the pension fund management company of their choice. At end -April 2023, there were 
11,670,107  people affiliated to the Individual Capital Account Pension System.205 This is equivalent 
to around 60 % of the population (19.5  million). Dependent workers account for 94.6 % of all 
contributors.  
4.160.   Pension fund management companies (AFPs) are private institutions responsible for 
managing individual accounts through pension funds, and are the largest institutional investor in the 
Chilean fi nancial market. The total value of the assets of AFPs was USD  188,502  million on 
30 April 2023, representing 57.5 % of GDP.206 At 30  April 2023 there were seven AFPs; in four of 
them some of the principal shareholders are controlled by foreign entities.  
4.4.1.4.2   Lega l and institutional framework  
4.161.   The pensions system is governed by Decree -Law No.  3.500 of 1980, as amended on several 
occasions, which created the individual capital account system managed by the AFPs, and its 
implementing regulations contained in Decree No . 57 of 20  July 1990. The most significant 
amendments made to the legislation during the review period include Exempt Resolution No.  722 of 
28 March  2022 approving the new sanctions procedure associated with the "Sanctions and 
Compliance" process of the Pe nsions Supervisory Authority, and Exempt Resolution No.  496 of 
28 March  2017 establishing and approving the Code of Ethics for the Pensions Supervisory Authority.  
4.162.   The role of the Pensions Supervisory Authority (SP), which was created under 
Law No. 20.255 o f 2008 as the legal successor to the Pension Funds Management Companies 
Supervisory Authority, is to protect individuals' social security entitlements while contributing to the 
smooth running of the pensions and unemployment benefits system by providing hi gh quality 
regulation and supervision and timely delivery of clear, reliable information.207 The SP is an 
autonomous entity linked to Government through the Ministry of Labour and Social Welfare via the 
Under -Secretariat of Social Welfare. The  SP is respons ible for authorizing the establishment of AFPs, 
 
204 WTO document GATS/SC/18/Suppl.3 of 26  February  1998.  
205 Pensions Supervisory Authority (2023), Ficha Estadística Previsional N° 125 -abril 2023 . Viewed at: 
https://www.spensiones.cl/portal/institucional/594/articles -15570_recurso_1.pdf . 
206 Pensions Supervisory Authority (2023), Ficha Estadística Previsional N° 125 -abril 2023 . Viewed at: 
https://www.spensiones.cl/portal/institucional/594/articles -15570_recurso_1.pdf . 
207 Information from the Pensions Supervisory Authority. Viewed  at: 
https://www.spensiones.cl/portal/institucional/594/w3 -propertyname -581.html . WT/TPR/S/451/Rev.1  
- 152 - 
  overseeing the legal, administrative and financial aspects of their operation, and regulating their 
activities.  
4.163.   There are no restrictions on foreign investors, whether natural or legal persons, having 
shareho ldings in an AFP. AFPs must be established as sole purpose corporations, subject to 
SP approval. The minimum capital requirement for establishing an AFP is 5,000  UF (around 
USD 175,000); that requirement grows in line with the number of participants to up to 20,000  UF 
for more than 10,000  affiliates. AFPs are free to set their commissions, which must be standardized 
across all of an AFP's participants.  
4.164.   In addition to supervising regulatory compliance, the SP applies a risk -based supervision 
(RBS) model – a comprehensive, preventive mechanism to identify, monitor, control and attempt to 
mitigate the most critical risks facing the supervised entities by evaluating their process 
management. RBS is applied to the supervised entities, with appropriate adjustments  according to 
the complexity, nature and scale of the operations of each of the entities concerned.208 The resources 
in pension funds may only be invested in the securities expressly established by law and are 
managed under a multi -fund scheme. At present, five types of Funds (A, B, C, D and E) are being 
managed, the distinguishing factor being the level of risk to which they are exposed, defined as the 
proportion invested in variable -yield securities.209 The main purpose of creating a multiple fund or 
multi-fund scheme within the social welfare system is to increase the expected value of the pensions 
that the scheme's participants will obtain.  
4.165.   Chile has not made any specific commitments with regard to pension funds under the  GATS.  
4.4.2   Telecommunications  
4.4.2.1   General c haracteristics  
4.166.   In 2022, the communications sector in Chile accounted for 2.6 % of GDP. Within 
communications, the telecommunications sector is entirely privately operated; there is no state 
participation in the telecommunications sector, except in free -to-air television services (through 
Televisión Nacional de Chile (TVN)).  
4.167.   The telecommunications sector continued to expand rapidly during the review period. Mobile 
Internet access, in particular, underwent significant expansion. The number of mobile telephone  
lines also continued to increase. As of December  2022, there were more than 26.4  million mobile 
lines (Table 4.5). The penetration rate at that date was 132.8 lines per 100 inhabitants. The number 
of fixed lines continued to decline during the review peri od, down from 3.17  million in 2014 to 
2.22 million in 2022.  
Table 4.5 Telecommunications indicators, 2014 and 2022  
 2014  2022  
Share of telecommunications in GDP (at current prices) (%)  1.92 2.60 
Investment (USD  millions)  8,237a 7,166b 
Total number of lines (millions)  26.56  28.64  
Number of fixed lines  3.17 2.22 
Number of mobile lines  23.39  26.42  
Number of Internet accounts (millions)  12.31  26.86  
Fixed  2.24 4.46 
Mobile  10.07  22.40  
a 2015 
b 2021 
Source:  SUBTEL.  
 
208 Information from the Pensions Supervisory Authority. Viewed at: 
https://www.spensiones.cl/portal/institucional/594/w3 -propertyname -579.html . 
209 At 30  April 2023, the distribution of assets across the funds was: A:  13.7%, B: 16.6%, C: 34.8%, 
D: 18.4%, and E:  16.5%. Pensions Supervisory Authority (2023), Ficha Estadística Previsional 
Nº 125-abril 2023. Viewed at: https://www.spensiones.cl/portal/institucional/594/articles -
15570_recurso_1.pdf . WT/TPR/S/451/Rev.1  
- 153 - 
  4.168.   The number of optical fibre connections grew rapidly during the review period. In 
December  2022, optical fibre connections accounted for 66.0 % of total fixed Internet connections, 
followed by hybrid fibre coaxial (HFC) (29.3 %) and ADSL  (1.7%). At that date, the percentage of 
households with fixed internet stood at 62.6 % and the number of 5G mobile connections at 
2,040,071 .210 
4.169.   At the end of 2022, the fixed telephony market was shared by 17 service providers but was 
concentrated among the top five: Telefónica, with 35.4 % of the market; VTR (22.2 %); 
Entel (18.2 %); GTD Group (12.0 %); and Claro (9.0 %). The mobile market had nine players and 
was concentrated among four providers: Entel, with 32.2 % of the market; Movistar (24.9 %); 
Claro (21.3 %); and WOM (20.0 %). 
4.4.2.2   Legal and institutional framework  
4.170.   The Ministry of Transport and Telecommunications (MTT) has authority over the 
telecommunications industry in Chile and exercises its authority through the Under -Secretariat of 
Telecommunications (SUBTEL).  SUBTEL oversees the telecommunications sector, for which purpose 
it must ensure that the laws and technical regulations are applied and respected. SUBTEL also rules 
on the award of telecommunications and radio broadcasting concessions, handles application s for 
licences and permits, and imposes sanctions for non -compliance. Under Article 6 of 
Decree -Law No. 1.762 establishing the Under -Secretariat, SUBTEL's powers also include: proposing 
telecommunications policies; participating in national and regional te lecommunications development 
planning; ensuring compliance with international telecommunications treaties, conventions and 
agreements in force in Chile and with national telecommunications policies approved by the 
Government; developing and updating teleco mmunications plans; managing and overseeing the 
radio spectrum; issuing and monitoring compliance with technical regulations on 
telecommunications; representing Chile before the International Telecommunication Union and 
entering into telecommunications agr eements with other States; and obtaining from the entities 
operating in the field of telecommunications, as well as from other government bodies, the 
background and other information it needs in order to perform its tasks.  
4.171.   The goals of the telecommunicatio ns policy include: promoting equitable and inclusive access 
to telecommunications, so as to narrow the digital divide; fostering growth of the industry; 
safeguarding the necessary user protections; and ensuring the provision of quality services thanks 
to wider coverage of the digital highway, supported by an active regulator that strengthens the 
regulatory and institutional framework, with the aim of improving the quality of life and living 
conditions for all Chileans, especially those living in remote, rur al and low -income areas. To meet 
these general goals, the Ministry has set itself specific goals, which include: driving the development 
of mobility and connectivity; expanding telecommunications service coverage and improving service 
quality, particularly  in the country's more remote locations; increasing competition in the 
telecommunications sector; and encouraging investment in high -capacity, high -speed convergent 
infrastructure that will help to bring about development through the use of new technologie s.211 
4.172.   The main regulatory framework for the telecommunications sector is contained in the 
General Law on Telecommunications (LGT)212 and amendments thereto. The LGT  provides for free 
and equal access to the use of the radio spectrum, which is granted by SUBTEL through concessions, 
permits or licences for use (issued, in the case of concessions, by supreme decree of the MTT and, 
in the case of permits and licences, by  resolution of the Under -Secretariat). Amendments to the LGT 
have introduced matters such as number portability and have enshrined the principle of neutrality 
within the telecommunications network (Law No.  20.453, enacted on 18  August  2010, 
supplemented by  implementing regulations). A complete list of the laws, decrees and other 
 
210 Under -Secretariat of Telecommunications  (2023). Sector Telecomunica ciones, Cierre  2022. Viewed 
at: https://www.subtel.gob.cl/wp -content/uploads/2023/03/PPT_Series_DICIEMBRE_2022_V0.pdf  
211 Ministry of Transport and Telecommunications, Under -Secretariat of Telecommunications (2022), 
Balance de Gestión Integral, año 2021 . Viewed at: https://www.subtel.go b.cl/wp -
content/uploads/2022/09/BGI_2021_V_OFICIAL.pdf . 
212 Law No. 18.168 of 2 October 1982 and amendments thereto.  WT/TPR/S/451/Rev.1  
- 154 - 
  provisions governing the telecommunications sector is available online, on the Chilean Government's 
Transparency Portal.213 
4.173.   The main legislative changes since the last review in 2015 , include the following amendments 
to the LGT: Law No.  20.808 of 2015 protecting free choice in cable, Internet and telephone services; 
Law No.  21.035 of 2017 amending the General Law on Telecommunications with respect to 
notifications during the concessio n application process; Law No.  21.046 of 2017 establishing the 
obligation of a guaranteed minimum Internet access speed; Law No.  21.119 of 2018 amending the 
General Law on Telecommunications to establish penalties for illegal decoding of restricted televis ion 
services; Law No.  21.172 of 2019 amending Law No.  18.168, General Law on Telecommunications, 
to regulate the installation and removal of overhead and underground lines; Law No.  21.245 of 2020 
establishing national automatic roaming; Law No.  21.285 of 2 020 amending the General Law on 
Telecommunications with regard to the functionality of the broadcasting service; and Law No.  21.459 
of 2022 establishing rules on computer crimes, repealing Law No.  19.223 and amending other legal 
frameworks to bring them in to conformity with the Budapest Convention.  
4.174.   In addition, several other regulations were issued, including MTT Decree No.  138 of 2020 
approving the Regulations on automatic roaming and virtual mobile operation; Decree No.  50 
of 2021 amending MTT Supreme Dec ree No.  95 of 2019 to adapt the implementation milestones for 
digital terrestrial television; and Decree No.  192 of 2020 amending Supreme Decree No.  99, which 
approves the regulations setting out the requirements to obtain, establish, operate and exploit 
intermediate telecommunications service concessions that provide physical telecommunications 
infrastructure only.  
4.175.   Concessions that entail the assignment of exclusive radio frequencies are awarded by 
competitive tender. Invitations to tender for free -to-air or broadcasting telecommunications services 
concessions are published in the Official Journal. Where a concession is to be renewed, the incumbent 
concession -holder has the right of  first refusal, provided it can equal the best technical bid made by 
the oth er bidders. Concessions for public telecommunications services and intermediate services are 
granted for a period of 30 years. Broadcasting concessions are granted for periods of 25 years. To 
obtain a concession to provide public telecommunications service s or intermediate services, the 
beneficiary must be a company established in Chile, irrespective of the origin of its capital. 
Law No. 19.733 of 2001 stipulates that tenders for radio broadcasting concessions from legal 
persons in which foreign capital has  more than a 10 % stake will be approved only if the legislation 
of the country of origin of that capital grants similar conditions on a basis of reciprocity.214 Moreover, 
the presidents, managers, directors and legal representatives of free -to-air broadcast ing 
concession -holders must be Chilean.  
4.176.   As regards tariffs, a distinction must be made between the prices charged to the public and 
the prices charged to other operators for interconnections to allow network interoperability. For 
services to the public, th e LGT establishes pricing freedom as the general rule, except where the 
competition authority (which in Chile is the Competition Tribunal (TDLC)) rules that the conditions 
to ensure pricing freedom in that market are not met. Tariffs for services provided to other operators 
are regulated and must be set by operation of law alone, on the understanding that each operator 
has a "monopoly" on access to its network, e.g. for call termination.215 The tariff -setting procedure, 
the technical and economic bases for which (cost criteria, currency references, demand projection 
horizons, etc.) are fixed by SUBTEL at the outset, requires concession -holders subject to the 
procedure to submit a report, together with a  calculation model and the associated tariff proposal, 
which may be challenged and rectified by the MTT and the Ministry of the Economy, although a 
concession -holder may stand by its proposal. The result of the tariff -setting process is a schedule of 
maxim um tariffs per service, which must be updated every five years. The procedure, the competent 
authorities and the time limits for tariff -setting are decided by the LGT.  
4.177.   In conclusion, except for services for which the prices must always be fixed 
(e.g. interconnection prices), the LGT also authorizes the TDLC to regulate prices in specified cases, 
following the procedure provided for in Decree -Law No.  211. The TDLC thus has the power to 
 
213 Viewed at: https://www.portaltransparencia.cl/PortalPdT/directorio -de-organismos -
regulados/?org=AN002 . 
214 Law No. 19.733 of 4 June 2001 and amendments thereto.  
215 Article 25 of Law No.  18.168 (General Law on Telecommunicat ions) of 2  October  1982.  WT/TPR/S/451/Rev.1  
- 155 - 
  regulate tariffs even for services to the public when a particular kind o f telecommunications service 
(relevant market) is being provided in conditions where there is a lack of competition.216 
4.4.3   Transport  
4.4.3.1   Air transport  
4.178.   Air transport in Chile is regulated mainly by the Law on Commercial Aviation of 1979, the 
Aeronautics Code of 199 0 and Decree No.  102 of 1981 of the Ministry of Transport and 
Telecommunications on public tenders for air frequencies (Table 4.6). The main regulatory changes 
during the review period were the reforms of the Aeronautics Code (in 2015 and  2021) to improve 
the protection of passenger rights217, and the issuance and updating of technical standards to be 
met by foreign airlines wishing to provide international air transport services (passengers, freight 
and mail) in Chile.218 Chile maintains an open skies policy , which it has continued to strengthen by 
signing additional air services agreements (see below) to improve the country's connectivity and the 
conditions of competition in the sector.  
Table 4.6 Main legal inst ruments regulating the air transport sector  
Legal instrument  Description  Publication 
date Latest 
amendment  
Decree Law 
No. 2.564  Law on Commercial Aviation, which regulates commercial 
aviation, amends Decrees with Force of Law No.  221 of 
1931 and No. 241 of 1960 and repeals specified laws, 
Ministry of Transport and Telecommunications.  22/06/1979  19/06/2001  
Law No.  18.916  Aeronautics Code  08/02/1990  24/12/2021  
Decree No.  102 Regulations establishing the public tender procedures for 
the allocation of scheduled international services to 
domestic airline companies, Ministry of Transport and 
Telecommunications.  17/06/1981  06/09/2007  
Source:  WTO Secretariat, based on data provided by the authorities.  
4.179.   At the institutional level, there were no changes during the period under review. The main 
institutions with responsibilities in the air transport sector remain: (i) the Directorate -General of Civil 
Aeronautics (DGAC) of the Ministry of National Defence; (ii) the Directorate of Airports (D AP) of the 
Ministry of Public Works; and (iii) the Civil Aeronautics Board (JAC) under the Ministry of Transport 
and Telecommunications, made up of senior officials from various government entities, including the 
DGAC.219 The DGAC  is responsible for setting technical safety standards for the sector and for 
monitoring and managing compliance. The JAC is responsible for formulating and implementing air 
transport policies, allocating routes and negotiating international air transport agreements. The DAP 
is responsible for the development of the country's airport infrastructure.  
4.180.   The open skies policy governing commercial air transport is set forth in the Law on 
Commercial Aviation and is based on the principles of free market entry, fre e pricing and minimal 
state intervention.220 Under this policy, any domestic or foreign company is allowed to provide air 
transport and commercial aviation services in Chile, subject to the principle of reciprocity and 
compliance with the relevant technical  and safety requirements. With respect to cabotage the 
legislation goes further, allowing foreign companies to engage in cabotage without requiring 
reciprocity.221 As regards routes, where there are more interested airlines than there are available 
services , the JAC allocates scheduled international services through a public tender process. Routes 
 
216 Article 29 of Law No. 18.168 and Article 18 of Decree -Law No. 211 (establishing competition 
standards) of 22 December 1973, Ministry of the Economy, Development and Reconstruction.  
217 These changes were introduced by (i) Law No. 2 1.398 of 24 December 2021 establishing measures 
to foster the protection of consumer rights; (ii) Law No. 21.392 of 30 November 2021, which amends the 
Aeronautics Code to allow the transfer of flight tickets and establishes the right to refund; and 
(iii) Law No. 20.831 of 30 April 2015, which amends the Aeronautics Code in matters of passenger transport 
and passenger rights.  
218 Exempt Resolution No. 796 of 19 October 2019 (Aviation Technical Standard DAN 129).  
219 The JAC is composed of a General Secretary and  representatives of the Office of the President of the 
Republic, the DGAC and the following ministries: Ministry of Transport and Telecommunications, Ministry of 
Foreign Affairs, Ministry of Public Works and Ministry of Social Development and Family.  
220 Preamble and Article  1 of the Law on Commercial Aviation.  
221 Resolution  No. 63 of 21  January  2012, Ministry of Transport and Telecommunications.  WT/TPR/S/451/Rev.1  
- 156 - 
  are allocated for a period of five years.222 Companies are free to set the rates for domestic and 
international flights but must register them with the JAC. The JAC  may fix rates on international 
routes only when the other State concerned does not exercise pricing freedom.223 Domestic routes 
are not subject to any allocation or tendering process.  
4.181.   To operate in Chilean airspace an aircraft must be registered in Chile o r in another country 
and must hold an Air Operator Certificate, confirming compliance with the relevant technical and 
safety standards. Only a Chilean natural or legal person may register an aircraft in Chile. Chilean 
legal persons are entities incorporate d in Chile, with their principal domicile and real and effective 
headquarters  in Chile, which is majority -owned by Chilean investors and has Chilean management 
personnel. However, the law permits the registration of foreign -owned aircraft, provided the own ers 
(natural or legal persons) are engaged in a permanent professional or business activity in Chile. 
Foreign -owned aircraft may also be registered in Chile if they are operated commercially by a Chilean 
company. The professional qualifications of foreign airline personnel are recognized by Chile on the 
basis of mutual recognition agreements or the principle of reciprocity.224 
4.182.   Airports are state -owned but may be built and managed by private (domestic or foreign) 
companies under public works concessions award ed by public tender. Airports that are not under a 
concession are managed by the DGAC. Airport or air transport -related services (such as aircraft 
repair and maintenance) may be provided by foreign companies through administrative 
concessions.225 The State owns the Empresa Nacional de Aeronáutica de Chile (ENAER), which 
provides maintenance and other specialized services to military and civil aircraft.226 This is the only 
state-owned enterprise operating in the air transport sector.  
4.183.   Chile has seven internatio nal airports and over 300 airfields for domestic use. The 
international airports are managed by private concession -holders, except for Mataveri International 
Airport on Easter Island (Rapa Nui), which is managed by the DGAC. The DGAC also manages almost 
100 airfields.227 As manager, the DGAC provides airport and air navigation services, in addition to 
its supervisory functions. In 2019, Chile adopted an Airport Network Modernization Plan, with 
projected investment of around USD  1.4 billion through private co ncessions for 17 airports and 
airfields.228 
4.184.   Chile has an extensive network of air services agreements, totalling 79 agreements in 2022. 
Under these agreements, the parties grant each other up to sixth or, in some cases, seventh freedom 
rights, as well as th e right of air cabotage. During the review period, Chile negotiated 23  new 
agreements to improve its connectivity with economies in Latin America and the Caribbean (Guyana, 
Belize, the Bahamas, and Saint Vincent and the Grenadines), Europe and the Middle E ast (Austria, 
Cyprus, Malta, Greece, Latvia, the Netherlands, Czechia, Türkiye, Oman and the Kingdom of 
Saudi  Arabia), Africa (Rwanda, Botswana, Namibia, Ethiopia, Mozambique, Kenya and Cabo  Verde) 
and Asia (Thailand and Sri Lanka) (Table A4.3). During thi s period, Chile also expanded 10 of its 
existing agreements, namely, the agreements with Australia, Brazil, Costa Rica, Ecuador, Jamaica, 
the Bolivarian Republic of Venezuela, Finland, Spain and Luxembourg.229 
4.185.   The structure of the Chilean market has not cha nged significantly since the last review. The 
LATAM Group, headquartered in Santiago de Chile, remains the main airline in the domestic and 
international air transport market, although its share declined during the review period. In 2022, of 
the 23 airline s operating in the market for international flights, the LATAM Group held a market 
share of 44.6 % (57.4 % in 2015, LAN and TAM together), followed by SKY Airlines (13.6 % in 2022, 
5.9% in 2015), JetSMART (8.8 % in 2022)230 and Copa (7.4 % in 2022, 5 % in 2015). In the domestic 
flights market, of the four airlines operating in 2022, LATAM had a market share of 58 % (74% 
 
222 Article 4 of Decree No. 102 of 17 June 1991, Ministry of Transport and Telecommunications.  
223 Articles 1 and 2 of the Law on Commercial Aviation.  
224 Articles 37, 38, 61 and 62 of the Aeronautics Code.  
225 Article8 of Law No.  16.752 of 17 February 1968. The authorities have indicated that administrative 
concessions are similar to a lease agreement.  
226 ENAER, Empresa . Viewed at: https://www.enaer.cl/empresa/ . 
227 DGAC, Balance de Gestión Integral 2021 . 
228 DAP, Balance de Gestión Integral 2021 . 
229 Civil Aviation Board, Table of rights agreed by Chil e with other countries. Viewed at: 
http://www.jac.gob.cl/politica -aerocomercial/grado -de-apertura/ . 
230 JetSMART is a low -cost company that began  operations in Chile in 2017 and, since then, has 
positioned itself as one of the country's main airlines.  WT/TPR/S/451/Rev.1  
- 157 - 
  in 2015, LAN and TAM together), followed by SKY Airlines with 26 % (24.8 % in 2015) and JetSMART 
with 15 %.231 The State does not hold any stake in com panies operating in the commercial air 
transport sector.  
4.186.   During the review period, LAN and TAM completed the merger started in 2012232, and in 
May 2016 LAN, TAM and all their subsidiaries started to operate officially under the LATAM Airlines 
flag. In May  2020, after declaring bankruptcy in the United States, LATAM opted for a restructuring 
plan to reduce its debt and strengthen its financial position. LATAM completed this restructuring 
in 2022233 and remains one of Latin America's largest aviation groups.  
4.187.   As regards state aid, the authorities indicated that Chile did not grant direct or indirect aid 
of any kind to the air transport sector during the COVID -19 pandemic.  
4.188.   International air passenger traffic increased steadily over the period 2015 -19, but this tre nd 
was brought to a halt in 2020 by the border closures and mobility restrictions put in place to contain 
the COVID -19 pandemic. Since then, international air passenger traffic has gradually recovered but 
has not yet returned to pre -pandemic levels. In 201 9, international air passenger traffic reached 
11.1 million (8.2  million in 2015), before dropping to 3  million passengers in 2020. In 2022, 
international passenger traffic totalled 7  million.  
4.189.   Because of its ties to air transport, tourism was one of the se ctors most affected by the near 
total shutdown of flights during the pandemic. Around 46 % of the tourists who came to Chile in  2019 
arrived by air at one of the country's seven international airports, corresponding to 2  million 
passengers.234 As of 2022, th e number of arrivals had still not recovered, having reached 1.1  million 
passengers.  
4.190.   The use of air (and land) transport for the movement of goods is marginal. In 2021, only 
0.7% of Chile's exports and imports were carried by air (including courier and postal services).235 
Almost all international cargo trade is carried by sea.  
4.191.   Chile has negotiated air transport commitments in its regional trade agreements (RTAs). In 
recent years, Chile has adopted such commitments in its RTAs with Thailand (2015, year of entry 
into force), the Pacific Alliance member countries (2016), the United Kingdom (2021) and Ecuador 
(2022), as well as within the framework of the Comprehensive and Progressive Agreement for 
Trans -Pacific Partnership (CPTPP) (2023). As a rule, these commitments go beyond Chile's  
commitments under the GATS.236 At the multilateral level, Chile is a signatory to 
the 2001 Multilateral Agreement on the Liberalization of International Air Transport (MALIAT), 
the 2010 Open Skies Multilateral Agreement for Member States of the Latin American Civil Aviation 
Commission (LACAC) and the Agreement on Sub -regional Air Services (Fortaleza Agreement) with 
South  American countries.  
4.192.   In April  2022, in line with its environmental commitments, Chile submitted its voluntary 
Action Plan to reduce international aviation emissions to the International Civil Aviation Organization 
(ICAO).237 
 
231 Civil Aeronautics Board, Informe mensual de tráfico aéreo  (December 2015 and 2022). Viewed at: 
http://www.jac.gob.cl/estadisticas -ano-2022/  and http://www.jac.gob.cl/estadisticas -ano-2015/ . 
232 See WTO document WT/TPR/315/Rev.1 of 7 October 2015.  
233 LATAM, Relación con Inversionistas . Viewed at: https://www.lata mairlinesgroup.net/es/news -
releases/news -release -details/grupo -latam -sale-de-su-proceso -de-reestructuracion -con-una. 
234 National Tourism Service, Movimiento turístico internacional . Viewed at: 
https://www.sernatur.cl/dataturismo/ . 
235 Chile Customs, Anuario Estadístico 2021 . 
236 WTO Regional Trade Agreements Database. Viewed at: 
https://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . Under the GATS, Chile undertook commitments in 
respect of the opening of offices, the emission and sale of airline tickets and air waybills, computer reservation 
system services, the operation of ground support equipment, and aircraft maintenance services 
(WTO  document S/DCS/W/CHL of 24 January 2003).  
237 SUBREI, Noticias . Viewed at: https://www.subrei.gob.cl/sala -de-prensa/noticias/detalle -
noticias/2022/04/28/se -entrega -oficialmente -plan-de-acci%C3%B3n -voluntario -de-chile-para-la-
reducci%C3%B3n -de-emisiones -en-el-transporte -a%C3%A9reo -internacional . WT/TPR/S/451/Rev.1  
- 158 - 
  4.4.3.2   Maritime transport  
4.193.   Maritime transport plays a key role  in Chile's economic development and participation in 
international trade. Almost all Chilean exports and imports are carried by sea through the country's 
72 ports. In 2022, maritime transport was used for 89.5 % of exports and 77.3 % of imports (by 
value).238 In that same year, the Chilean merchant fleet consisted of 264 vessels and had a capacity 
of nearly 1  million deadweight tonnes.239 
4.194.   Maritime transport is governed mainly by the Shipping Law and the Law on the Development 
of the Merchant Marine and its imp lementing regulations (Table 4.7). Other relevant instruments 
include Law No.  19.542 on the modernization of the state port sector and Decree with Force of 
Law No. 340 and its implementing regulations on maritime concessions, which regulate ports and 
their activities. The regulations on maritime concessions were adopted in 2018 (replacing the 
previous regulations) in order to, among other things, simplify and strengthen certain administrative 
procedures. The main regulatory change in trade policy in this se ctor during the review period was 
the reform of the Law on the Development of the Merchant Marine in 2019 to allow foreign vessels 
of a certain size to provide passenger cabotage services (see below). In 2021, Chile also adopted 
various legal provisions to  facilitate international maritime trade and meet its commitments vis-à-vis 
the International Maritime Organization. Among other things, these provisions are aimed at 
streamlining  implementation of the maritime single window (VUMAR), introduced in 2018, an d 
modernizing the work of the Technical Commission on the Facilitation and Simplification of Maritime 
Transport, which is tasked with advising the Government in this area.240 By implementing VUMAR, 
Chile seeks to simplify and standardize the processing of s hipping documents at the national level. 
According to the authorities, VUMAR, which is currently in the pilot phase, should come into operation 
at the national level in  2024.  
Table 4.7 Main legal instruments o n maritime transport and ports  
Legal instrument  Description  Publication 
date Latest 
amendment  
Decree -Law No.  2.222  Shipping Law, Ministry of National Defence  31/05/1978  26/05/2022  
Decree -Law No.  3.059  Law on the Development of the Merchant Marine, Ministry 
of Transport and Telecommunications.  22/12/1979  26/02/2019  
Decree No.  237 Implementing regulations of the Law on the Development 
of the Merchant Marine (superseding Decree No.  24 of 
1986, approving the implementing regulations of 
Decree -Law No.  3.059 of 1979, Law on the Development 
of the Merchant Marine), Ministry of Transport and 
Telecommunications.  25/07/2001  25/07/2001  
Law No.  19.542  Law modernizing the state port sector  19/12/1997  07/07/2023  
Decree with Force of 
Law No. 340 On maritime concessions, Ministry of Finance.  06/04/1960  06/09/1991  
Decree No.  9 Replacing the implementing regulations on maritime 
concessions, established by Supreme Decree (M) No.  2 of 
2005, Ministry of National Defence.  17/03/2018  04/03/2020  
Source:  WTO Secretariat.  
4.195.   In addition to these reforms, in April  2023, Chile launched a consultation process to develop 
a comprehensive policy for the sector, called the National Port Logistics Development Policy. This 
strategy will be designed along four l ines: (i) institutional framework and regulation of the sector; 
(ii) facilitation of economic development; (iii) territorial planning and sustainability; and 
(iv) modernization of port labour legislation. This initiative had been accompanied by a diagnosti c 
study and proposals.241 
 
238 National Customs Service (2023), Compendio Estadístico de Comercio Exterior: 
enero -diciembre  2022. In 2022, exports and imports transported by sea accounted for 96.5 % and 85.7 % of 
total export and import tonnage, respectively.  
239 DIRECTEMAR, Boletín Estadístico Marítimo, Edición 2023 . 
240 The changes were made by means of: (i) Law No. 21.138 of 26 February 20 19 amending 
Decree -Law No. 3.059 of 1979 to authorize passenger cabotage for foreign -flag cruise ships; and 
(ii) Decree  No. 8 of 25 April 2022 of the Ministry of Transport and Telecommunication, establishing the 
Technical Commission, laying down rules for the facilitation and simplification of documentation in maritime 
transport and creating the maritime single window.  
241 Ministry of Transport and Telecommunications and Ministry of Economy, Development and 
Tourism  (2023), Política Nacional Logística Portuari a – Consolidado de diagnósticos y propuestas . WT/TPR/S/451/Rev.1  
- 159 - 
  4.196.   At the institutional level, the main public bodies with responsibilities in the maritime 
transport sector remain: (i) the Ministry of Transport and Telecommunications (MTT), through its 
Under -Secretariat of Transport; (ii) the Mini stry of Defence, through the Directorate -General of the 
Maritime Territory and Merchant Marine (DIRECTEMAR) and the Armed Forces Under -Secretariat; 
and (iii) the National Customs Service. The MTT is responsible for policy formulation and 
implementation in this area and for coordination with all the other entities. DIRECTEMAR is the 
country's maritime authority and as such is responsible for setting technical and safety standards, 
and for monitoring compliance. The Armed Forces Under -Secretariat is responsib le, inter alia , for 
authorizing maritime concessions in private ports (see below). The National Customs Service 
oversees cargo handling at ports. In addition to these three entities, the Merchant Marine 
Development Commission is responsible for applying th e principle of reciprocity in the provision of 
maritime services from or to Chile, and for administering permits for the use of foreign vessels by 
Chilean shipping companies in cabotage activities, where required.242 
4.197.   Chile's policy on access to the market f or international maritime services and related services 
did not change during the review period. Both domestic and foreign companies may provide 
international cargo transport services. In the case of foreign vessels, the principle of reciprocity 
applies an d the percentage of cargo granted to Chilean vessels by the other party is taken into 
account.243 
4.198.   Maritime cabotage services are generally reserved to ships registered in Chile, except in 
certain cases where foreign vessels are permitted to perform such ser vices.244 Foreign vessels may 
engage in maritime cargo cabotage activities: (i) when the volume of cargo exceeds 900  tonnes245; 
(ii) when the volume of cargo is less than 900 tonnes but no Chilean vessels are available246; (iii) for 
the transport of empty containers when the principle of reciprocity is applied; and (iv) when the 
vessels are leased by Chilean companies on a temporary basis and certain conditions are met. In 
addition, since 2019, Chile has allowed foreign -flag passenger vessels to provi de cabotage services 
for tourism purposes if their carrying capacity is 400 passengers or more.247 This provision does not 
apply to the Juan Fernández Islands or Easter Island (Rapa Nui).  
4.199.   As regards vessel registration, only Chilean natural or legal persons  may register a vessel in 
Chile, with a few exceptions.248 In order to be considered Chilean, a legal person must be established 
in Chile, must be majority -owned by Chilean investors and must have Chilean management 
personnel. Foreign -owned vessels, other than fishing vessels, may be registered in Chile provided 
the owners (natural or legal persons) have a permanent professional/commercial address in the 
country. For fishing companies incorporated in Chile with majority foreign ownership, registration  in 
Chile is permitted subject to the application of reciprocity by the other State. For ships registered in 
Chile, the captain and crew must be Chilean. Where deemed indispensable, the recruitment of 
foreign personnel may be authorized, except for the cap tain, who must always be Chilean.249 
4.200.   As regards incentives, the State may grant subsidies to Chilean shipping companies when a 
special cabotage service is required that is not available in the market. The subsidy is granted by 
tender to Chilean shipping com panies that undertake to provide the specified service.250 The 
authorities have indicated that, during the period 2018 -22, these subsidies amounted to 
CLP 165,707  million and benefited 104 shipping lines. Furthermore, Chilean and foreign companies 
providing  international cargo or passenger transport services may reclaim VAT.  
4.201.   Chile levies a 5 % tax on the income of foreign shipping companies from the international 
transport  of maritime freight. This tax does not apply where there is no similar tax in the forei gn 
vessels' country of registration or where Chilean vessels are exempted from the tax on a reciprocal 
 
242 Article 21 of the implementing regulations of the Law on the Development of the Merchant Marine.  
243 Article 4 of the Law on the Development of the Merchant Marine.  
244 Articles  3 and  6 of the Law on the Developm ent of the Merchant Marine.  
245 In this case, the foreign company may engage in cabotage activities through a public tender. In 
order to be awarded the contract, an additional 6 % is applied to foreign companies' bids, equivalent to the 
general customs tariff . 
246 This authorization may also be granted when it involves the exclusive transport of passengers.  
247 Article 3 of the Law on the Development of the Merchant Marine.  
248 Article  11 of the Shipping Law.  
249 Article 14 of the Shipping Law.  
250 Article 14 of the Law on the Development of the Merchant Marine.  WT/TPR/S/451/Rev.1  
- 160 - 
  basis.251 For cabotage services, the tax is charged at a rate of 20 % if the foreign vessels operate 
through Chilean companies under lease agreements, and at 35 % if they operate under transport 
contracts.252 
4.202.   In the area of port services, Chile has two regulatory frameworks: one for state -owned ports 
(Law No.  19.542 of 1997) and one for privately -owned ports (Decree with Force of Law No.  340 
of 1960 and its im plementing regulations). The differences between these two systems include how 
the concessions are granted and conditions for the ports' operation, as well as the obligations of 
concession -holders. No changes were made to these systems during the review pe riod, but the 
possibility of unifying the two systems was discussed in the context of the National Port Logistics 
Development Policy initiative launched in 2023 (see above). In 2022, the Chilean port system 
comprised 72 ports (52 in 2015): 13 state -owned a nd 59 privately -owned. Of the privately -owned 
ports, 15 were for public use (free access) and 44 for private use. In 2021, 53 % by value of 
Chilean  exports transported by sea went through state -owned ports (equivalent to 28 % in 
tonnage).253 The main state -owned ports are the ports of San Antonio, San Vincente and Valparaíso, 
which in 2021 handled almost 30 % (by value) of total cargo handled by Chilean ports (including the 
privately -owned ports).254 
4.203.   The State has 10 port authorities charged with the management,  operation and development 
of the existing 13 state -owned ports. By law, these authorities may delegate port operation and 
related services (such as loading, unloading and cargo transfer) to private entities (domestic or 
foreign) through a bidding process.255 There are no restrictions on the share of foreign ownership in 
these activities. Port operating concessions may be awarded for periods of up to 30  years. At 
present, private companies hold the concessions for all the state -owned ports, except in three c ases 
where the terminals are operated by state -owned enterprises.256 Contracts for the construction of 
state-owned ports must be awarded by public tender.257 The management of the port authorities is 
monitored and overseen by the Enterprise System (Section 3 .3.5.2).  
4.204.   A concession to operate a private port may be granted upon submission by the interested 
party of an application to the Armed Forces Under -Secretariat. Such a concession, known as a 
maritime concession, may be authorized and granted for a period of  up to 50 years. Unlike 
state-owned ports, private ports may be for public or private use.  
4.205.   For state -owned ports, the obligations of the concession -holder are established by the 
Competition Tribunal (TDLC), with the aim of ensuring the service quality and competition. Rates for 
port services are set by the port authorities in the concession agreement. Privately -owned ports are 
not subject to the obligations established by the TDLC, nor to price regulation of any kind.258 
4.206.   Chile has made maritime transport com mitments in some of its regional trade agreements 
(RTAs). In recent years, such commitments have been included in the RTAs with the Pacific Alliance, 
the United Kingdom and Ecuador and in the CPTPP. The first two of these agreements also include 
a chapter on maritime transport, with provisions to facilitate cooperation between the parties and 
trade in services in this area.259 Chile has not made any specific commitments on maritime transport 
under the GATS.260 
 
 
251 This tax features in Chile's list of MFN exemptions under the GATS (WTO document GATS/EL/18 of 
15 April 1994).  
252 Articles 59 and 60 of Decree -Law No. 824 of 31 December 1974, Ministry of Finance.  
253 Ministry of Transport and Telecommunications, and Ministry of Economy, Development and 
Tourism  (2023), Política Nacional Logística Portuaria – Consolidado de diagnósticos y propuestas . 
254 DIRECTEMAR, Boletín Estadístico Marítimo 2022 . 
255 Articles 4, 5 and 7 of Law No. 19.542 of 19 December 1977.  
256 The Puerto Montt, Chacabuco and Austral Port Authorities.  
257 Article 19 of Law  No. 19.542.  
258 Ministry of Transport and Telecommunications, and Ministry of Economy, Development and 
Tourism  (2023), Política Nacional Logística  Portuaria – Consolidado de diagnósticos y propuestas . 
259 WTO RTA database. Viewed at: https://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . 
260 WTO document S/DCS/W/CHL of 24 January 2003.  WT/TPR/S/451/Rev.1  
- 161 - 
  5  APPENDIX TABLES  
Table  A1.1 Merchandise exports by HS section, 2015 -22 
(USD million and %)  
Description  2015  2016  2017  2018  2019  2020  2021  2022   
(USD million)  
Exports  62,118  60,769  68,904  74,838  68,792  74,081  94,677  97,491   
(% of exports)  
1 -Live animals; animal products  8.4 9.1 9.1 9.5 10.3 8.8 7.9 9.5 
03. Fish, crustaceans and molluscs  6.5 7.3 7.6 7.9 8.4 6.7 6.2 7.7 
02. Meat and edible meat offal  1.5 1.5 1.2 1.3 1.7 1.8 1.5 1.6 
04. Dairy produce; birds' eggs; 
natural honey  0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.2 
2 -Vegetable products  9.9 11.2 9.5 10.0 11.3 10.1 8.2 8.2 
08. Edible fruit and nuts; melons  8.5 9.8 8.2 8.6 9.9 8.8 7.1 7.1 
12. Oil seeds and oleaginous fruits; 
industrial or medicinal plants; 
straw and fodder  0.5 0.6 0.6 0.6 0.6 0.5 0.4 0.5 
11. Products of the milling industry  0.1 0.1 0.1 0.2 0.2 0.3 0.2 0.2 
3 -Animal or vegetable fats and oils  0.4 0.3 0.3 0.4 0.4 0.4 0.4 0.4 
4 -Prepared foodstuffs;  
beverages, spirits and tobacco  6.5 6.4 6.0 5.6 5.7 5.3 4.3 4.2 
22. Beverages and spirits  3.0 3.1 3.0 2.7 2.8 2.5 2.1 2.0 
20. Preparations of vegetables, 
fruit, nuts or plants  1.0 1.0 0.9 0.9 0.9 0.8 0.7 0.8 
23. Residues from the food 
industries; animal fodder  0.7 0.6 0.6 0.6 0.5 0.7 0.5 0.5 
   16. Preparations of meat, of fish 
or of crustaceans  0.6 0.5 0.5 0.6 0.6 0.6 0.5 0.4 
5 -Mineral products  25.3 25.2 28.4 28.9 29.8 34.5 37.0 29.0 
26. Ores, slag and ash  24.0 24.0 27.1 27.4 28.6 33.6 36.0 27.0 
27. Mineral fuels; bituminous 
substances  0.9 0.9 1.1 1.2 1.0 0.7 0.8 1.7 
6 -Products of the chemical or allied 
industries  4.1 4.6 4.4 4.7 4.8 4.2 4.2 13.1 
28. Inorganic chemicals  2.0 2.5 2.6 3.0 2.9 2.6 2.5 10.9 
31. Fertilisers  1.2 1.1 0.8 0.7 0.6 0.6 0.6 1.1 
29. Organic chemicals  0.1 0.2 0.3 0.3 0.5 0.3 0.4 0.5 
7 -Plastics and articles thereof  1.4 1.2 1.1 1.1 1.2 0.9 0.9 0.9 
8 -Raw hides and skins, leather, 
furskins; saddlery  0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 
9 -Wood and articles of wood; wood 
charcoal  3.6 3.8 3.3 3.5 3.4 3.0 2.8 3.2 
   44. Wood and articles of wood; 
wood charcoal  3.6 3.8 3.2 3.5 3.4 3.0 2.8 3.2 
10 -Pulp of wood or of other fibrous 
cellulosic material; paper or 
paperboard  5.0 4.8 4.6 5.6 4.7 3.6 3.5 3.6 
47. Pulp of wood; recovered paper 
or paperboard  4.1 4.0 3.9 4.9 3.9 2.8 2.9 2.9 
48. Paper and paperboard; articles 
of paper or of paperboard  0.8 0.8 0.7 0.7 0.7 0.7 0.5 0.6 
11 -Textiles and textile articles  0.3 0.4 0.5 0.7 0.7 0.4 0.4 0.5 
12 -Footwear, headgear, umbrellas, 
sun umbrellas, walking -sticks; 
feathers and articles made therewith  0.0 0.0 0.1 0.2 0.2 0.1 0.1 0.1 
13 -Articles of stone, plaster, cement, 
asbestos, mica; ceramic products; 
glass 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
14 -Natural pearls, precious or semi-
precious stones, precious metals  1.5 1.6 1.4 1.4 1.4 1.7 1.4 1.3 
15 -Base metals and articles of base 
metal  28.6 26.6 27.2 25.4 23.4 23.8 26.6 23.7 
74. Copper and articles thereof  27.4 25.4 26.0 24.0 21.9 22.8 25.3 22.3 
72. Iron and steel  0.3 0.3 0.3 0.7 0.6 0.4 0.7 0.7 
73. Articles of iron or steel  0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 
76. Aluminium and articles thereof  0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.2 WT/TPR/S/451/Rev.1  
- 162 - 
  Description  2015  2016  2017  2018  2019  2020  2021  2022  
16 -Machinery and mechanical 
appliances; electrical equipment; 
parts thereof  1.6 1.6 1.5 1.2 1.4 1.1 1.0 1.1 
17 -Vehicles, aircraft, vessels and 
associated transport equipment  0.7 1.0 1.0 1.2 0.9 1.8 1.0 0.6 
87. Vehicles other than railway or 
tramway rolling -stock 0.4 0.5 0.7 0.9 0.8 0.5 0.5 0.5 
18 -Optical, photographic, 
cinematographic, measuring and 
checking instruments and apparatus  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
19 -Arms and ammunition; parts 
thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 -Miscellaneous manufactured 
articles  0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 
21 -Works of art, collectors' pieces 
and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  2.1 1.8 1.0 0.1 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations based on UN Comtrade data.   WT/TPR/S/451/Rev.1  
- 163 - 
  Table A1. 2 Merchandise imports by HS section, 2015 -22 
(USD million and %)  
Description  2015  2016  2017  2018  2019  2020  2021  2022   
(USD million)  
Imports  62,319  59,285  65,168  74,612  69,855  59,201  92,191  104,402   
(% of imports)  
1 -Live animals; animal 
products  2.2 2.5 2.9 2.7 2.9 3.4 3.3 2.7 
02. Meat and edible meat 
offal 1.7 2.0 2.2 2.1 2.3 2.6 2.7 2.1 
04. Dairy produce; birds' 
eggs; natural honey  0.3 0.3 0.5 0.4 0.4 0.6 0.5 0.4 
2 -Vegetable products  2.2 2.1 2.2 2.3 2.4 3.3 2.7 2.6 
10. Cereals  1.0 1.0 1.1 1.1 1.3 1.7 1.4 1.4 
08. Edible fruit and nuts; 
melons  0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.3 
11. Products of the milling 
industry  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
09. Coffee, tea, maté and 
spices  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
12. Oil seeds and oleaginous 
fruits; industrial or medicinal 
plants; straw and fodder  0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.2 
3 -Animal or vegetable fats and 
oils 0.9 0.8 0.9 0.9 0.9 1.2 1.0 1.1 
4 -Prepared foodstuffs;  
beverages, spirits and tobacco  4.2 4.5 4.3 4.1 4.3 5.0 4.6 4.6 
23. Residues from the food 
industries; animal fodder  1.2 1.2 1.3 1.3 1.3 1.4 1.3 1.4 
22. Beverages and spirits  0.6 0.7 0.7 0.6 0.7 0.7 0.8 0.7 
21. Miscellaneous edible 
preparations  0.7 0.7 0.7 0.6 0.6 0.8 0.7 0.7 
5 -Mineral products  15.4 14.4 16.3 18.0 17.6 14.2 16.5 23.2 
27. Mineral fuels; bituminous 
substances  14.4 13.3 15.4 17.1 16.7 12.9 15.2 22.2 
6 -Products of the chemical or 
allied industries  9.7 9.1 9.0 9.1 9.7 10.9 9.9 10.2 
30. Pharmaceutical products  1.9 2.0 2.0 2.1 2.4 2.9 2.7 2.2 
28. Inorganic chemicals  1.3 1.1 1.1 1.2 1.4 1.3 1.3 2.1 
38. Miscellaneous chemical 
products  1.4 1.4 1.3 1.2 1.3 1.7 1.4 1.4 
29. Organic chemicals  1.4 1.3 1.4 1.4 1.3 1.3 1.2 1.4 
7 -Plastics and articles thereof  5.3 5.1 5.1 5.0 5.0 5.4 5.5 4.7 
39. Plastics and articles 
thereof  3.7 3.6 3.5 3.5 3.4 3.7 3.9 3.3 
8 -Raw hides and skins, leather, 
furskins; saddlery  0.4 0.4 0.5 0.5 0.4 0.3 0.3 0.4 
9 -Wood and articles of wood; 
wood charcoal  0.5 0.5 0.4 0.5 0.4 0.4 0.7 0.3 
10 –Pulp of wood or of other 
fibrous cellulosic material; 
paper or paperboard  1.5 1.5 1.5 1.5 1.5 1.4 1.3 1.6 
48. Paper and paperboard; 
articles of paper or of 
paperboard  1.2 1.2 1.2 1.3 1.3 1.2 1.1 1.4 
11 -Textiles and textile articles  5.4 5.8 6.3 6.2 5.8 5.5 5.1 5.3 
61. Articles of apparel and 
clothing accessories, knitted 
or crocheted  1.9 2.1 2.2 2.1 2.0 1.6 1.7 2.0 
62. Articles of apparel and 
clothing accessories, not 
knitted or crocheted  1.9 2.0 2.2 2.1 1.9 1.6 1.2 1.5 
12 -Footwear, headgear, 
umbrellas, sun umbrellas, 
walking -sticks; feathers and 
articles made therewith  1.6 1.8 2.0 1.8 1.6 1.3 1.3 1.5 
64. Footwear, gaiters and the 
like; parts of such articles  1.5 1.7 1.9 1.7 1.5 1.2 1.2 1.4 
13 -Articles of stone, plaster, 
cement, asbestos, mica; 
ceramic products; glass  1.1 1.1 1.0 1.0 1.0 0.9 1.1 1.0 
14 -Natural pearls, precious or 
semi-precious stones, precious 
metals  0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.1 
15 -Base metals and articles of 
base metal  5.8 5.2 5.2 5.7 6.0 5.7 6.4 5.5 
72. Iron and steel 1.8 1.6 1.8 2.1 2.1 1.8 2.5 2.0 
73. Articles of iron or steel  2.2 1.8 1.7 1.9 2.2 2.1 2.0 1.8 WT/TPR/S/451/Rev.1  
- 164 - 
  Description  2015  2016  2017  2018  2019  2020  2021  2022  
16 -Machinery and mechanical 
appliances; electrical 
equipment; parts thereof  23.6 24.1 22.5 21.5 22.5 27.0 23.4 18.6 
84. Nuclear reactors, boilers, 
machinery and mechanical 
appliances  12.8 12.0 11.9 11.6 12.7 13.8 12.1 10.4 
85. Electrical machinery and 
equipment; sound and image 
recorders  10.8 12.1 10.6 9.9 9.9 13.2 11.3 8.2 
17 -Vehicles, aircraft, vessels 
and associated transport 
equipment  12.0 13.1 13.3 14.3 13.0 9.0 11.6 11.8 
87. Vehicles other than 
railway or tramway rolling -
stock 9.7 10.4 12.3 13.2 11.2 8.1 10.9 11.5 
18 -Optical, photographic and 
cinematographic instruments 
and apparatus  2.1 2.2 2.1 2.1 2.2 2.4 2.1 1.7 
19 -Arms and ammunition; 
parts thereof  0.2 0.2 0.2 0.3 0.1 0.2 0.2 0.1 
20 -Miscellaneous manufactured 
articles  2.3 2.6 2.6 2.5 2.4 2.2 2.8 2.2 
21 -Works of art, collectors' 
pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  3.4 2.8 1.5 0.0 0.0 0.0 0.0 0.7 
Source:  WTO Secretariat calculations based on UN Comtrade data.   WT/TPR/S/451/Rev.1  
- 165 - 
  Table A1. 3 Merchandise exports by trading partner, 2015 -22 
(USD million and %)  
Description  2015  2016  2017  2018  2019  2020  2021  2022   
(USD million)  
Exports  62,118  60,769  68,904  74,838  68,792  74,081  94,677  97,491   
(% of exports)  
The America s 33.2 32.8 33.3 30.3 30.6 27.2 29.9 29.6 
  United States  13.2 13.9 14.6 13.9 13.9 13.2 15.8 13.9 
  Other - America s 20.0 18.9 18.7 16.4 16.7 14.0 14.1 15.7 
Brazil  4.9 4.9 5.0 4.4 4.5 4.2 4.8 4.6 
Peru 2.6 2.5 2.5 2.3 2.6 2.1 1.7 1.9 
Mexico  2.2 2.0 1.7 1.7 1.9 1.4 1.5 1.8 
Canada  2.0 1.6 2.1 1.4 1.5 1.3 1.2 1.5 
Plurinational State of  
Bolivia  2.1 2.1 1.7 1.4 1.3 1.1 1.0 1.2 
Colombia  1.3 1.2 1.0 1.0 0.9 0.8 0.7 1.0 
Argentina  1.3 1.2 1.4 1.1 0.9 0.8 0.8 0.9 
Ecuador  0.7 0.7 0.7 0.7 0.6 0.6 0.5 0.6 
Paraguay  0.9 0.8 1.0 0.9 0.8 0.5 0.5 0.5 
Panama  0.3 0.3 0.4 0.3 0.3 0.2 0.2 0.3 
Costa  Rica 0.4 0.4 0.3 0.3 0.2 0.2 0.3 0.3 
Europe  14.6 14.1 13.9 12.8 12.0 11.7 10.9 9.6 
EU(27)  12.1 11.8 11.9 10.8 9.8 9.4 8.9 7.8 
Netherlands  2.6 2.7 2.5 2.1 2.3 1.8 1.6 2.0 
Spain  2.1 2.3 2.5 2.2 1.8 1.6 1.6 1.4 
France  1.3 1.3 1.3 1.4 1.3 1.8 1.7 1.1 
Germany  1.3 1.2 1.6 1.4 1.2 1.4 1.1 0.9 
Belgium  1.2 0.9 0.8 0.8 0.7 0.6 0.5 0.8 
EFTA 0.9 0.9 0.6 0.8 0.9 1.2 1.0 1.0 
Switzerland  0.8 0.8 0.6 0.7 0.9 1.1 1.0 0.9 
Other - Europe  1.6 1.4 1.3 1.3 1.3 1.2 1.0 0.8 
United Kingdom  1.1 1.0 0.8 0.9 0.9 0.8 0.6 0.6 
Türkiye  0.5 0.4 0.5 0.4 0.3 0.4 0.3 0.2 
Commonwealth of Independent 
States (CIS)a 1.0 0.9 1.1 1.3 1.3 1.1 0.8 0.6 
Russian Federation  0.9 0.8 1.0 1.2 1.2 0.9 0.7 0.5 
Georgia  0.1 0.0 0.1 0.0 0.2 0.2 0.1 0.1 
Africa  0.5 0.4 0.3 0.5 0.6 0.6 0.6 0.6 
South Africa  0.2 0.1 0.1 0.2 0.1 0.1 0.2 0.2 
Nigeria  0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 
Côte d'Ivoire  0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 
Middle East  0.8 0.7 0.7 0.8 0.7 0.7 0.6 0.6 
United Arab Emirates  0.1 0.1 0.2 0.2 0.3 0.3 0.2 0.2 
Israel  0.1 0.1 0.2 0.2 0.2 0.1 0.1 0.1 
Kingdom of Bahrain  0.1 0.1 0.1 0.1 0.0 0.0 0.1 0.1 
Kingdom of Saudi 
Arabia  0.2 0.2 0.1 0.1 0.2 0.2 0.1 0.1 
Asia 49.3 50.4 50.0 53.7 54.1 58.3 57.0 58.5 
China  26.1 28.5 27.4 33.2 32.2 38.7 38.6 39.4 
Japan  8.5 8.5 9.2 9.2 9.0 8.9 7.6 7.6 
Other - Asia 14.7 13.3 13.4 11.2 12.9 10.6 10.8 11.4 
Korea, Republic of  6.4 6.9 6.2 5.7 6.5 5.6 5.1 6.2 
Chinese Taipei  2.3 1.8 1.9 1.8 2.2 1.8 2.2 1.6 
India 3.0 2.3 3.0 1.7 1.7 1.0 1.4 1.3 
Thailand  0.5 0.5 0.5 0.6 0.5 0.5 0.5 0.7 
Viet Nam 0.4 0.3 0.4 0.4 0.4 0.3 0.3 0.4 
Other  0.7 0.6 0.6 0.7 0.6 0.3 0.3 0.5 
Memorandum  
EU-28 13.1 12.8 12.8 11.7 10.7 10.2 9.5 8.4 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations based on UN Comtrade data.   WT/TPR/S/451/Rev.1  
- 166 - 
  Table A1. 4 Merchandise imports by trading partner, 2015 -22 
(USD million and %)  
Description  2015  2016  2017  2018  2019  2020  2021  2022   
(USD million)  
Imports  62,319  59,285  65,168  74,612  69,855  59,201  92,191  104,402   
(% of imports)  
America s 44.2 42.0 44.3 45.0 44.7 42.7 42.2 47.2 
United States  19.0 17.5 18.0 18.8 19.6 17.8 17.4 20.9 
Other - America s 25.1 24.6 26.3 26.2 25.1 24.9 24.8 26.4 
Brazil  7.8 8.1 8.7 9.1 8.2 7.4 8.4 9.7 
Argentina  4.0 4.3 4.5 4.5 5.0 5.6 5.3 5.8 
Mexico  3.5 3.4 3.3 3.2 2.9 2.7 2.7 2.2 
Peru 1.8 1.7 1.4 1.6 1.7 1.9 2.0 1.9 
Colombia  1.4 1.3 1.8 1.9 1.8 1.9 1.5 1.7 
Ecuador  1.9 1.7 2.3 2.2 2.3 1.5 1.3 1.2 
Paraguay  1.1 1.0 1.0 0.9 1.0 1.4 1.2 1.2 
Canada  1.2 1.0 1.2 1.2 1.0 1.3 1.3 1.0 
Trinidad  and Tobago  1.4 1.1 1.2 0.9 0.3 0.3 0.3 0.6 
Plurinational State of  Bolivia  0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.4 
Europe  16.6 18.1 15.9 16.0 17.3 16.7 14.3 12.9 
EU(27)  14.7 16.1 14.0 13.9 15.2 14.5 12.3 11.1 
Germany  3.8 3.8 4.0 3.9 4.0 3.9 3.2 2.7 
Spain  2.5 2.6 2.2 2.2 2.4 2.4 2.3 1.9 
Italy 1.9 1.8 1.8 1.7 1.9 1.9 1.6 1.4 
France  2.5 3.2 1.9 1.9 2.5 1.5 1.3 1.3 
Belgium  0.6 0.7 0.6 0.6 0.6 0.6 0.6 0.7 
EFTA 0.6 0.7 0.5 0.6 0.6 0.8 0.5 0.5 
Switzerland  0.4 0.4 0.4 0.4 0.4 0.5 0.3 0.3 
Norway  0.1 0.2 0.1 0.2 0.2 0.3 0.2 0.2 
Other - Europe  1.3 1.3 1.4 1.5 1.5 1.4 1.4 1.2 
Türkiye  0.4 0.5 0.5 0.6 0.6 0.5 0.7 0.6 
United Kingdom  0.9 0.8 0.9 0.9 0.8 0.9 0.7 0.6 
Commonwealth of Independent 
States (CIS)a 0.1 0.1 0.1 0.1 0.1 0.1 0.3 0.2 
Kazakhstan  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
Russian Federation  0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.1 
Africa  0.3 0.2 0.2 0.4 0.5 0.5 0.9 1.0 
Equatorial Guinea  0.1 0.0 0.0 0.3 0.1 0.2 0.1 0.5 
Angola  0.1 0.0 0.0 0.0 0.3 0.1 0.6 0.4 
South Africa  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Middle East  0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.3 
Israel  0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 
United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.0 0.1 0.1 
Asia 35.9 36.6 36.7 35.2 34.8 37.4 40.2 36.1 
China  23.6 24.4 24.1 23.6 23.6 27.8 29.8 25.3 
Japan  3.2 3.3 3.1 3.2 3.4 2.0 2.3 2.6 
Other - Asia 9.1 9.0 9.5 8.4 7.9 7.7 8.0 8.2 
Korea, Republic of  3.2 2.9 2.9 2.5 2.0 1.7 2.0 1.9 
India 1.1 1.2 1.2 1.3 1.5 1.2 1.4 1.4 
Viet Nam 1.0 1.2 1.4 1.0 1.1 1.4 1.4 1.4 
Australia  0.4 0.6 0.5 0.3 0.3 0.5 0.5 0.8 
Thailand  1.2 1.1 1.4 1.3 1.0 0.8 0.8 0.8 
Other  2.4 2.5 2.4 2.9 2.3 2.3 2.0 2.3 
Memorandum  
EU-28 15.5 16.9 14.9 14.8 16.0 15.4 13.0 11.7 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations based on UN Comtrade data.  
 
  WT/TPR/S/451/Rev.1  
- 167 - 
  Table  A2.1 Chile's most recent notifications to the WTO, July 2023  
Agreement and 
provision  Type of measure notified  Frequency  WTO document  Date  
Agreement on Agriculture  
Article 18.2 (MA:2)  Imports under tariff quotas  On an annual 
basis G/AG/N/CHL/74  18/07/2023  
Article 18.2 (DS:1)  Domestic support  On an annual 
basis G/AG/N/CHL/76  19/07/2023  
Articles 10 and 18.2 
(ES:1)  Export subsidies  On an annual 
basis G/AG/N/CHL/70  18/07/2023  
Articles 10 and 18.2 
(ES:2)  Export subsidies  On an annual 
basis G/AG/N/CHL/72  18/07/2023  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex B(3)  Notification of sanitary and 
phytosanitary measures (SPS) 
applicable to various products  Ad hoc  G/SPS/N/CHL/491 to  
G/SPS/N/CHL/741/Add.1  09/01/2015 
to 
20/07/2023  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/CHL/304 to  
G/TBT/N/CHL/625/Add.2  02/06/2015 
to 
18/07/2023  
Article 5.6  Conformity assessment 
procedures  Ad hoc  G/TBT/N/CHL/299 to 
G/TBT/N/CHL/655  31/03/2015 
to 
19/07/2023  
Articles 2.9 and 5.6  Technical regulations and 
conformity assessment 
procedures  Ad hoc  G/TBT/N/CHL/294 to  
G/TBT/N/CHL/578  02/02/2015 
to 
22/11/2021  
Article 2.10  Technical regulations (urgent)  Ad hoc  G/TBT/N/CHL/634  27/03/2023  
Article 5.7  Conformity assessment 
procedures (urgent)  Ad hoc  G/TBT/N/CHL/641  21/06/2023  
Articles 2.10 and 5.7  Technical regulations and 
conformity assessment 
procedures (urgent)  Ad hoc  G/TBT/N/CHL/298  12/03/2015  
Article 15.2  Administrative provisions, laws 
and regulations (measures in 
existence or taken to ensure the 
implementation and 
administration of the 
TBT Agreement)  Once only, 
subsequently 
notification of 
changes  G/TBT/2/Add.16/Rev.2  13/07/2023  
Anti-Dumping Agreement  
Article 16.4  Anti-dumping actions  On a 
semi-annual 
basis G/ADP/N/377/Add.1  20/04/2023  
Agreement on Rules of Origin  
Annex II, paragraph 4  Preferential rules of origin  Ad hoc  G/RO/N/252  04/05/2023  
Agreement on Import Licensing Procedures  
Article 7.3  Import licensing procedures  On an annual 
basis G/LIC/N/3/CHL/9  29/03/2022  
Agreement on Subsidies and Countervailing Measures  
Article 25.1  Subsidy programmes  On an annual 
basis G/SCM/N/401/CHL  30/06/2023  
Article 25.11  Countervailing duty actions 
(taken within the preceding 
six months)  On a 
semi-annual 
basis G/SCM/N/399/Add.1  20/04/2023  
Agreement on Safeguards  
Article 12  Termination  Ad hoc  G/SG/N/9/CHL/12  25/01/2019  
Article 12.1(a)  Initiation  Ad hoc  G/SG/N/6/CHL/20  09/03/2018  
Article 12.1(b)  
Article 12.1(c)  
Article 9, note 2  Finding  Ad hoc  G/SG/N/8/CHL/7/Suppl.1  
G/SG/N/10/CHL/9/Suppl.1  
G/SG/N/11/CHL/10/Suppl.1  26/04/2016  
Agreement on Trade Facilitation  
Articles 1.4, 10.4.3, 
10.6.2 and 12.2.2  Provisions on transparency, 
trade -related formalities and 
customs cooperation  Once only, 
subsequently 
notification of 
changes  G/TFA/N/CHL/2/Rev.2  24/08/2020  
Article 15  Category A commitments  Once only, 
subsequently 
notification of 
changes  G/TFA/N/CHL/1  15/02/2018  
General Agreement on Trade in Services (GATS)  
Article III:4, 
Article  IV:2 Enquiry and contact points  Once only, 
subsequently 
notification of 
changes  S/ENQ/78/Rev.23  10/02/2023  
LDC services waiver 
(WT/L/847)  Preferential treatment to services 
and service suppliers of LDCs  Once only   S/C/N/834  12/10/2015  WT/TPR/S/451/Rev.1  
- 168 - 
  Agreement and 
provision  Type of measure notified  Frequency  WTO document  Date  
TRIPS Agreement  
Article 67  Designation of contact points for 
TRIPS -related technical 
cooperation  Once only, 
subsequently 
notification of 
changes  IP/N/7/CHL/2  02/04/2020  
Ministerial Decision on preferential rules of origin for LDCs (WT/L/917/Add.1)  
Paragraph 4.3  Preferential rules of origin  Ad hoc  G/RO/LDC/N/CHL/1/Rev.1  27/10/2020  
GATT 1994, Article XVII:4  
Article XVII:4(a)  State trading enterprises (STR)  Biennial  G/STR/N/19/CHL  11/04/2023  
GATT 1994, Article XXIV, and GATS, Article V (Participation in regional trade agreements)  
GATT 1994, 
Article  XXIV:7(a)  Establishment of a free trade 
area Ad hoc  WT/REG395/N/5  09/06/2023  
GATS, Article V:7(a)  Economic integration agreements  Ad hoc  S/C/N/920/Add.4  09/06/2023  
Transparency Mechanism for Regional Trade Agreements (WT/L/671)  
Paragraph 14  Changes to an already 
implemented RTA  Once only  WT/COMTD/RTA15/N/1/A
dd.230  07/02/2023  
Note:  The covered notification period is from 1 January 2015 to 20 July 2023.  
Source:  WTO Secretariat.  
  WT/TPR/S/451/Rev.1  
- 169 - 
  Table  A2.2 Chile's current trade agreements, July 2023  
Country or region  Type of agreement  Entry into force  
Plurinational State of Bolivia  Economic complementarity agreement  06/04/1993  
Venezuela, Bolivarian Republic of  Economic complementarity agreement  01/07/1993  
MERCOSUR  Economic complementarity agreement  01/10/1996  
Canada  Free trade agreement  05/07/1997  
Mexico  Free trade agreement  31/07/1999  
Central America  Free trade agreement  14/02/2002  
European Union  Association agreement  01/02/2003  
United States  Free trade agreement  01/01/2004  
Korea, Republic of  Free trade agreement  01/04/2004  
EFTA Free trade agreement  01/12/2004  
China  Free trade agreement  01/10/2006a 
P-4 (Chile, Singapore, New Zealand 
and Brunei Darussalam)  Economic partnership agreement  08/11/2006  
India Partial scope agreement  17/08/2007  
Japan  Economic partnership agreement  03/09/2007  
Panama  Free trade agreement  07/03/2008  
Cuba Economic complementarity agreement  27/06/2008  
Peru Free trade agreement  01/03/2009  
Australia  Free trade agreement  06/03/2009  
Colombia  Free trade agreement  08/05/2009  
Türkiye  Free trade agreement  01/03/2011  
Malaysia  Free trade agreement  18/04/2012  
Viet Nam  Free trade agreement  01/01/2014  
Hong Kong, China  Free trade agreement  29/11/2014b 
Thailand  Free trade agreement  05/11/2015  
Pacific Alliance  Trade protocol  01/05/2016  
Uruguay  Free trade agreement  13/12/2018  
Argentina  Free trade agreement  01/05/2019  
Indonesia  Comprehensive economic partnership 
agreement  10/08/2019  
United Kingdom  Economic partnership agreement  01/01/2021  
Brazil  Free trade agreement  25/01/2022  
Ecuador  Trade integration agreement  16/05/2022  
CPTPP  Plurilateral economic integration agreement  21/02/2023  
a The protocol amending the Free Trade Agreement and the Supplementary Agreement on Trade in 
Services of the Free Trad e Agreement between Chile and China entered into force on 1 March 2019.  
b The updated schedule of services under that agreement entered into force on 6 April 2023.  
Source:  WTO Secretariat, on the basis of online information from SUBREI. 
  WT/TPR/S/451/Rev.1  
- 170 - 
  Table  A3.1 Summary analysis of the MFN tariff excluding ad valorem  equivalents,  2023  
Product description  MFN 
Bound tariff 
rangea (%) Number 
of lines  Average (%)  Range (%)  Coefficient 
of variation 
(CV) 
Total  8,738  6.0 0 – 6 0.1 0 – 98 
HS 01-24 2,092  6.0 6 0.0 25 – 98 
HS 25-97 6,646  6.0 0 – 6 0.1 0 – 25 
By WTO category  
Agricultural products  1,455  6.0 6 0.0 25 – 98 
Animals and animal products  183 6.0 6 0.0 25 
Dairy products  37 6.0 6 0.0 25 - 31.5 
Fruit, vegetables and garden produce  535 6.0 6 0.0 25 
Coffee and tea  29 6.0 6 0.0 25 
Cereals and cereal preparations  143 6.0 6 0.0 25 - 31.5 
Oilseeds, fats and oils and their products  129 6.0 6 0.0 25 - 31.5 
Sugar and confectionery  22 6.0 6 0.0 25 - 98 
Beverages, alcohol and tobacco  119 6.0 6 0.0 25 
Cotton  5 6.0 6 0.0 25 
Other agricultural products n.e.s.  253 6.0 6 0.0 25 
Non-agricultural products (including petroleum)  7,283  6.0 0 - 6 0.1 0 - 25 
Non-agricultural products (excluding petroleum)  7,255  6.0 0 - 6 0.1 0 - 25 
Fish and fish products  707 6.0 6 0.0 25 
Mineral products and metals  1,035  6.0 6 0.0 0 - 25 
Chemicals and photographic products  1,632  6.0 6 0.0 25 
Wood, wood pulp, paper and furniture  437 5.9 0 - 6 0.1 25 
Textiles  655 6.0 6 0.0 25 
Clothing  217 6.0 6 0.0 25 
Leather, rubber, footwear and travel articles  175 6.0 6 0.0 25 
Non-electrical machinery  941 6.0 0 - 6 0.0 23 - 25 
Electrical machinery  419 6.0 0 - 6 0.0 25 
Transport equipment  474 5.6 0 - 6 0.3 3 - 25 
Non-agricultural products n.e.s.  563 6.0 0 - 6 0.0 15 - 25 
Petroleum  28 6.0 6 0.0 25 
By ISIC sectorb 
Agriculture and fishing  887 6.0 6 0.0 0 - 31.5 
Mining  119 6.0 6 0.0 25 
Manufacturing  7,731  6.0 0 - 6 0.1 3 - 98 
By HS section  
01 Live animals; animal products  861 6.0 6 0.0 25 - 31.5 
02 Vegetable products  737 6.0 6 0.0 25 - 31.5 
03 Fats and oils  78 6.0 6 0.0 25 - 31.5 
04 Prepared foodstuffs, etc.  416 6.0 6 0.0 25 - 98 
05 Mineral products  197 6.0 6 0.0 0 - 25 
06 Products of the chemical or allied industries  1,508  6.0 6 0.0 25 
07 Plastics and rubber  293 6.0 6 0.0 25 
08 Raw hides and skins, leather  79 6.0 6 0.0 25 
09 Wood and articles of wood  212 6.0 6 0.0 25 
10 Pulp of wood, paper, etc.  183 5.9 0 - 6 0.1 25 
11 Textiles and textile articles  855 6.0 6 0.0 25 
12 Footwear, headgear  51 6.0 6 0.0 25 
13 Articles of stone  177 6.0 6 0.0 25 
14 Precious stones, etc.  62 6.0 6 0.0 25 
15 Base metals and articles of base metal  629 6.0 6 0.0 25 
16 Machinery and mechanical appliances  1,352  6.0 0 - 6 0.0 23 - 25 
17 Vehicles, aircraft, vessels and associated transport 
equipment  493 5.6 0 - 6 0.3 3 - 25 
18 Precision instruments  307 6.0 6 0.0 25 
19 Arms and ammunition  24 6.0 6 0.0 25 
20 Miscellaneous manufactured articles  194 6.0 6 0.0 15 - 25 
21 Works of art, etc.  30 6.0 6 0.0 25 
By stage of processing  
First stage of processing  1,554  6.0 6 0.0 0 - 31.5 
Semi-processed products  2,453  6.0 6 0.0 25 - 98 
Fully processed products  4,731  6.0 0 - 6 0.1 3 - 31.5 
a The bound rates correspond to the HS 2017 classification and the applied rates to HS 2022.  
b ISIC (Rev.2), excluding electricity (one line).  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
  WT/TPR/S/451/Rev.1  
- 171 - 
  Table  A4.1 Main agricultural exports and imports, 2015 -22 
Product 
(HS 2 digits)  Description  2015  2016  2017  2018  2019  2020  2021  2022  
Exports: top 10 products (% of total agricultural exportsa) 
08 Edible fruit and nuts; peel of citrus 
fruit or melons  48.8 52.7 50.7 52.8 54.4 52.9 52.5 51.5 
22 Beverages, spirits and vinegar  17.3 16.7 18.4 16.6 15.6 15.0 15.5 14.4 
02 Meat and edible meat offal  8.6 8.0 7.3 7.9 9.1 11.1 11.1 11.3 
20 Preparations of vegetables, fruit, 
nuts or other parts of plants  5.6 5.3 5.5 5.4 5.0 4.7 5.2 6.1 
12 Oil seeds and oleaginous fruits; 
miscellaneous grains, seeds and 
fruit; industrial or medicinal 
plants;  straw and fodder.  3.1 3.1 3.6 3.5 3.2 2.9 2.9 3.5 
15 Animal or vegetable fats and oils; 
prepared edible fats  1.1 0.9 1.0 1.1 1.0 1.2 1.5 1.8 
21 Miscellaneous edible preparations  3.6 3.1 2.9 2.4 2.1 2.1 1.7 1.6 
04 Dairy produce; birds' eggs; natural 
honey; edible products of animal 
origin  1.5 1.1 1.3 1.3 1.1 1.0 1.0 1.5 
11 Products of the milling industry; 
malt; starches; inulin; wheat 
gluten  0.7 0.6 0.6 1.2 1.3 1.7 1.5 1.5 
19 Preparations of cereals, flour, 
starch or milk  2.3 2.0 2.1 1.4 1.4 1.4 1.3 1.2 
- Other  7.5 6.4 6.7 6.5 5.9 6.0 5.8 5.5 
Imports: top 10 products (% of total agricultural imports)  
02 Meat and edible meat offal  19.1 21.3 22.3 21.6 22.5 21.0 23.3 19.4 
10 Cereals  11.4 10.1 11.0 11.4 12.5 13.9 12.2 13.5 
23 Residues and waste from the food 
industries; prepared animal fodder  11.9 12.2 12.0 12.8 12.1 11.0 11.3 12.9 
15 Animal or vegetable fats and oils; 
prepared edible fats  7.9 7.2 8.1 7.8 7.1 7.6 7.5 9.0 
22 Beverages, spirits and vinegar  6.7 7.0 6.7 6.6 7.2 5.7 7.1 6.9 
21 Miscellaneous edible preparations  7.6 7.4 6.8 5.8 6.1 6.5 6.1 6.2 
17 Sugars and sugar confectionery  5.3 5.8 4.1 3.9 3.8 3.8 3.6 4.3 
20 Preparations of vegetables, fruit, 
nuts or other parts of plants  3.7 4.2 3.9 3.8 3.9 3.4 3.7 3.9 
04 Dairy produce; birds' eggs; natural 
honey; edible products of animal 
origin  3.4 3.5 4.8 4.6 4.2 4.7 4.3 3.8 
19 Preparations of cereals, flour, 
starch or milk  3.4 3.2 3.1 3.1 3.7 3.6 3.5 3.5 
- Other  19.6 18.1 17.3 18.5 17.0 18.8 17.4 16.6 
a Classification of agricultural products by WTO definition.  
Source:  WTO Secretariat on the basis of UN Comtrade data.  
  WT/TPR/S/451/Rev.1  
- 172 - 
  Table  A4.2 Imports of products subject to price bands,  2015 -22 
(USD million)  
Product  
(HS 6 digits)  Description  2015  2016  2017  2018  2019  2020  2021  2022  
1001.99  Wheat (other than seed)  192.5  186.2  305.0  293.7  285.5  278.1  417.4  494.2  
1101.00  Wheat or meslin flour  6.7 5.8 6.0 8.0 7.7 10.0 9.9 17.3 
1701.12  Beet sugar  1.1 2.4 2.6 2.0 1.8 1.6 2.7 2.5 
1701.13  Cane sugar  0.0 0.0 0.1 0.3 0.3 0.4 0.5 0.3 
1701.14  Other cane sugar  47.9 85.8 25.6 25.9 29.1 31.4 58.3 74.1 
1701.91a Containing added 
flavouring or colouring 
matter  0.0 0.1 0.1 0.1 0.0 0.3 0.0 0.0 
1701.99a, b Cane sugar, refined  149.7  154.4  146.8  166.7  144.6  164.1  187.7  260.5  
1701.99a, b Beet sugar, refined  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
1701.99a, b Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
a Products subject to preferential tariff quotas.  
b Products subject to tariff quotas.  
Source:  WTO Secretariat calculations based on UN Comtrade data.  
  WT/TPR/S/451/Rev.1  
- 173 - 
  Table  A4.3 List of agricultural support programmes notified to the WTO,  2022  
Programme  Description  Focus of activity  Implementing 
entity  
Agricultural research 
funds Co-financing of innovation projects  Research  FIA 
Research and 
development centre 
projects  Generation, adaptation and dissemination of 
scientific and technological knowledge and 
products that contribute to the sustainable 
(social, economic and environmental) 
development of the competitiveness of the 
various agricultural sector actors.  Research  INIA  
Technical Advisory 
Service  Financing for technical advisory services  Training services  INDAP  
Fund for 
Organizational 
Development 
Projects  Financing for training programmes  Training services  INDAP  
Business 
management centre 
for small producers  Financing for technical and economic 
(accounting, fiscal, legal and strategic) advisory 
services  Training services  INDAP  
Development 
promotion services  Financing for technical advisory services to 
improve productivity and the environmental 
situation and to raise partnership levels.  Training services  INDAP  
Rural Women 
Programme  Financing for technical training and education 
for women in  rural areas  Training services  INDAP and 
Foundation for 
the 
Advancement 
and 
Development of 
Women 
(PRODEMU)  
Technical Assistance 
Funds  Financing for contracting consultancy services 
for small and medium -sized agricultural 
producers, including for designing  irrigation 
projects under the Irrigation and Energy 
Efficiency Pre -Investment Programmes.  Advisory services  Ministry of 
Agriculture and 
CORFO  
Agricultural 
Protection 
Programme  Financing to improve food safety and quality 
systems and plant and animal health systems.  Inspection services  SAG 
Promotion 
Programme  The payment of incentives to encourage 
business modernization through the association 
of similar or complementary enterprises 
established in the same area.  Marketing and 
promotion  Ministry  of 
Agriculture and 
CORFO  
Supplier 
Development 
Programme (PDP)  Financing for  business projects with a view to 
improving supplier quality and productivity.  Marketing and 
promotion  Ministry of 
Agriculture and 
CORFO  
Law No. 18.450  Promotion of private inves tment in irrigation 
and drainage works through competitive funds . Irrigation 
infrastructure  National 
Irrigation 
Commission  
Irrigation for 
small -scale farming  Financing for projects that seek to diversify and 
increase the productivity of small -scale farming 
by introducing, improving and expanding 
irrigation.  Irrigation 
infrastructure  INDAP  
Agricultural 
Emergency Fund  Assistance for the agricultural sector to offset 
the adverse effects of climatic events.  Financial assistance  Ministry of 
Agriculture  
Agricultural 
insurance  Agricultural insurance subsidy  Financial assistance  Agricultural 
Insurance 
Committee  
Source:  WTO document G/AG/N/CHL/76 of 19 July 2023.  
  WT/TPR/S/451/Rev.1  
- 174 - 
  Table  A4.4 Air rights agreements signed by Chile during the 2015 -22 period  
Country  Year  Between 
territories of 
the parties (3rd 
and 4th 
freedoms)  Between 
counterparty 
territory and third 
countries (5th and 
6th freedoms)a From 
counterparty 
territory to third 
countries (7th 
freedom)b Cabotage  
Cyprus  2019 Open skies  Open skies  Open skies  Open skies  
Saint Vincent and the 
Grenadines  2016 Open skies  Open skies  Open skies  Open skies  
Malta  2019 Open skies  Open skies  Open skies (cargo)c Open skies  
Rwanda  2018 Open skies  Open skies  Open skies  Unilateral 
opening  
Botswana  2017 Open skies  Open skies  Open skies  Unilateral 
opening  
Namibia  2017 Open skies  Open skies  Open skies  Unilateral 
opening  
Ethiopia  2018 Open skies  Open skies  Open skies (cargo)  Unilateral 
opening  
Thailand  2018 Open skies  Open skies  Open skies (cargo)  Unilateral 
opening  
Bahamas  2017 Open skies  Open skies  Open skies (cargo)  Unilateral 
opening  
Oman  2017 Open skies  Open skies  Open skies (cargo)  Unilateral 
opening  
Sri Lanka  2017 Open skies  Open skies  Open skies (cargo)d Unilateral 
opening  
Guyana  2016 Open skies  Open skies  Open skies (cargo)  Unilateral 
opening  
Cabo Verde  2015 Open skies  Open skies  Open skies (cargo)  Unilateral 
opening  
Netherlands  2018 Open skies Open skiesa Open skies (cargo)  Unilateral 
opening  
Belize  2021 Open skies  Open skies  Without rights  Unilateral 
opening  
Greece  2019 Open skies  Open skies  Without rights  Unilateral 
opening  
Latvia  2019 Open skies  Open skies  Without rights  Unilateral 
opening  
Mozambique  2019 Open skies  Open skies  Without rights  Unilateral 
opening  
Türkiye  2019 Open skies  Open skies  Without rights  Unilateral 
opening  
Austria  2019 Open skies  Open skiese Without rights  Unilateral 
opening  
Kenya  2018 Open skies Open skies  Without rights  Unilateral 
opening  
Czech Republic  2017 Open skies  Open skies  Without rights  Unilateral 
opening  
Kingdom of 
Saudi  Arabia  2022 Open skies  Open skies (cargo), 
21 flights/week.  Without rights  Unilateral 
opening  
a Between the territory of the other Party and third countries touching down in Chilean territory.  
b From the territory of the other Party to third countries without touching down in Chilean territory.  
c The aeronautical authorities reserve the right to authorize 7th freedom operations on a case -by-case 
basis.  
d Open skies for 7th freedom only at Mattala  (VCRI) and Santiago  (SCEL) airports.  
e Subject to specific conditions.  
Note:  Open skies means without limitation on the number of flights or operating po ints. 
Source:  Chilean Civil Aeronautics Board (JAC).  
 
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