WT/REG344/1  
30 June 2014  
(14-3731)  Page: 1/43  
Committee on Regional Trade Agreements   
 
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN  CHILE AND NICARAGUA  
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the consideration of the Free Trade Agreement between Chile 
and Nicaragua has been drawn up by the WTO Secretariat on its own responsibility 
and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to Mr. Jean-Daniel 
Rey (Tel.: +41 22 739 5264). Any statistical questions arising from this report may be addressed to Ms. Alejandra Barajas Barbosa (+41 22 739 6425) and 
Ms. Rowena Cabos (tel: +41 22 739 5185).  
  WT/REG344/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Overview .................................................................................................................. 4  
1.2   Merchand ise trade ..................................................................................................... 4  
1.3   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 8  
2.1   Background  Information ............................................................................................. 8  
2.2   Structure of the Agreement ......................................................................................... 8  
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 10  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 10 
3.1.1   Genera l provisions ................................................................................................. 10 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 10 
3.1.3   Liberali zation schedule............................................................................................ 10 
3.1.3.1   Chile ............................................................................................................... .. 11 
3.1.3.2   Nicaragua .......................................................................................................... 13 
3.1.4   Tariff rate quotas ................................................................................................... 15 
3.2   Rules of origin .......................................................................................................... 15 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 17 
3.4   Regulatory provisions on trade in goods ....................................................................... 17 
3.4.1   Standards ............................................................................................................. 17 
3.4.1.1   Sanitary and phytosanitary measures (SPS) ............................................................ 17 
3.4.1.2   Technical ba rriers to tr ade (TBT) ........................................................................... 18 
3.4.2   Safeguard mechanisms ........................................................................................... 18 
3.4.2.1   Global safeguards ............................................................................................... 18 
3.4.2.2   Bilateral safeguards ............................................................................................. 19 
3.4.2.3   Safeguard measures related to  balance of payment (BOP) difficulties ......................... 19 
3.4.3   Anti-dumping and countervailing measures ............................................................... 19 
3.4.4   Subsidie s and State-aid .......................................................................................... 20 
3.4.5   Customs-re lated procedures .................................................................................... 20 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 20  
4.1   Scope and definitions ................................................................................................ 20 
4.2   General provisions on trade in services ........................................................................ 21 
4.2.1   National treatment and MFN .................................................................................... 21 
4.2.2   Mark et acce ss ....................................................................................................... 21 
4.2.3   Local presence ...................................................................................................... 22 
4.2.4   Performanc e requirements ...................................................................................... 22 
4.2.5   Senior managers and board of direct ors .................................................................... 22 
4.2.6   Temporary moveme nt of busine ss persons ................................................................ 22 
4.3   Liberalization commitments ........................................................................................ 23 WT/REG344/1 
 
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  4.3.1   Chile ................................................................................................................. ... 24 
4.3.1.1   Chile's sector specific commitments on trad e in services ........................................... 24 
4.3.2   Nicaragua .............................................................................................................  27 
4.3.2.1   Nicaragua's sector specific  commitments on tr ade in services .................................... 28 
4.4   Sector specific provisions in trade in services ................................................................ 31 
4.4.1   Air Transport ......................................................................................................... 31 
4.4.2   Telecommuni cation services .................................................................................... 31 
4.5   Regulatory provisions ................................................................................................ 31 
4.5.1   Domestic regulation ............................................................................................... 31 
4.5.2   Recognition ........................................................................................................... 32 
4.5.3   Subsidies .............................................................................................................. 32 
4.5.4   Tran sparen cy ........................................................................................................ 32 
4.5.5   Safeguards ........................................................................................................... 32 
4.5.6   Other ................................................................................................................. .. 32 
4.5.6.1   In vestment ........................................................................................................ 32 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 33  
5.1   Tran sparency ........................................................................................................... 33 
5.2   Current payments and capital movements .................................................................... 33 
5.3   Exceptions ............................................................................................................... 33 
5.4   Accession and Withdrawal .......................................................................................... 34 
5.5   Government  procurement .......................................................................................... 34 
5.6   Intellectual property rights ......................................................................................... 34 
5.7   Other ...................................................................................................................... 35 
5.7.1   Competition .......................................................................................................... 35 
5.8   Disput e settlement ................................................................................................... 35 
5.9   Institutio nal framework ............................................................................................. 37 
5.10   Relationship with other agr eements concluded by the Parties ........................................ 37 
ANNEX 1 ....................................................................................................................... . 40 
 WT/REG344/1 
 
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Key Facts 
 
Parties to the Agreement: Chile and Nicaragua  
 
Date of Signature:  19 October 1999 
 2 February 2011  
(bilateral Protocol) 
 
Date of Entry into Force: 19 October 2012 
 
Date of Notification:  14 June 2014 
 
Full implementation: 1 January 2026  
(tariff elimination)  
 
 
1  TRADE ENVIRONMENT 
1.1  Overview1 
1.1.  The Free Trade Agreement (hereinafter re ferred to as the Agreement) between Chile and 
Nicaragua is Nicaragua's 9th and Chile's 20th RTA.2  
1.2.  In 2012, with a population of over 6 million, Nicaragua's GDP was estimated at 
US$10.5 billion while that of Chile, with a po pulation of 17.5 million was estimated at 
US$270 billion. While Chile mainly exports mining products (60.4% of Chile's global exports), 
Nicaragua's main exports are agricultural products (76.7% of Nicaragua's global exports). Both 
Parties import globally essentially manufactured goods (59.1% of Nicaragua's and 67.5% of Chile's 
global imports). Averaged over the period 2010-2012, Nicaragua's trade (goods and services) to 
GDP ratio (117) is substantially higher than Chile's (69.2). 
1.2  Merchandise trade 1.3.  In 2012, Nicaragua's share in total world exports and imports was 0.01% and 0.03% 
respectively, while Chile's share was 0.43% for both exports and imports. With total merchandise 
exports of US$2.7 billion and imports of US$5.9 billion (both increasing during recent years), 
Nicaragua ranked 99
th in the world as exporter and 98th as importer compared to Chile's rankings 
at 33rd for exports and 26th for imports (with global exports and imports of US$78 billion and 
US$79 billion). 
1.4.  In 2012, Nicaragua was Chile's 50th largest source of imports and destination for exports, 
accounting for less than 0.01% of its total imports and exports.3 For Nicaragua, Chile represented 
0.5% of its total imports, making Chile Nicaragua's 18th largest source of imports - while it was 
also Nicaragua's 20th largest destination for exports, accounting for 0.3% of Nicaragua's total 
exports.4 
                                               
1 Source for this section: WTO Trade Profiles 2013 (2 012 data) Export figures are calculated f.o.b. and 
import figures are calculated c.i.f (WTO webpage viewed on 5 June 2014). Ranking in world trade excluding intra-EU trade. The figures may, in certain cases, differ from those submitted by  the Parties. However to 
ensure comparability between factual presentations, the trade data and statistics contained in the WTO Trade Profiles series are systematically used for this section. For bilateral trade however, the figures as based on UNSD Comtrade. 
2 Agreements in goods and services counted as one an d only agreements in force, notified to the WTO, 
counted. Agreements concluded by Chile with each Central American State counted as one. 
3 In 2012 the five top sources of imports for Chile were: the US (22.9%), China (18.2%), the EU27 
(13.4%), Argentina (6.6%) , and Brazil (6.5%); the fi ve top export destinatio ns from Chile were: China 
(23.3%); the EU27 (15.3%); the US (12. 3%); Japan (10.7%); and Korea (5.8%). 
4 In 2012, the five top sources of imports for Nicaragua were: the U.S. (18%), Venezuela (13.6%), 
China (9.5%), Curaçao (9.3%), and the EU27 (8.5%); th e five top destinations of exports from Nicaragua 
were: the US (29.9%), Venezuela (16.5%), the EU27 ( 13.2%), Canada (11.8%), and El Salvador (9.1%). WT/REG344/1 
 
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  1.5.  Developments in global and intra-Party trade are presented in Chart 1.1.5 Bilateral trade 
between Nicaragua and Chile and their global trad e patterns were broadly similar with an overall 
progression during the period, marked however by a sharp decline both globally and bilaterally in connection with the financial crises. Since 2009 trade is recovering, although Chile's total exports 
experienced a setback in 2012 as compared to the previous year. Chile has run a trade surplus 
with Nicaragua and globally, while Nicaragua expe rienced a significant trade deficit especially 
globally and also with Chile.  
Chart 1.1 Chile - Nicaragua: bilateral and total merchandise trade, 2000-2012 
0.000.020.040.060.080.100.12
020406080100120
2000 2002 2004 2006 2008 2010 2012A. Chile 2000-2012
(US$ Billions)
Imports from Nicaragua (Right Axis)
Exports to Nicaragua (Right Axis)
Total Imports
Total Exports
0.000.040.080.120.160.200.24
0123456
2000 2002 2004 2006 2008 2010 2012B. Nicaragua 2000-2012 
(US$ Billions)
Imports from Chile (Right Axis)
Exports to Chile (Right Axis)
Total Imports
Total Exports
 
 
Source: UNSD Comtrade. 
 
1.6.  The commodity structure of trade among the Pa rties, as well as with the world in the period 
2009-2011, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. Prepared food 
accounted for 89% of Chile's imports from Nicaragua, while this sector only represented 3% of Chile's global imports, and 14% of Nicaragua's gl obal exports. Chemicals, Chile's second largest 
import from Nicaragua (8% of Chile's imports from Nicaragua), accounted for a negligible part of 
Nicaragua's global exports and represented 5% of Chile's global imports. These figures tend to 
show that Chile's profile of imports from Nicaragua's is not representative of Chile's global import profile. For Nicaragua however, the largest bilateral import, chemicals (33% of Nicaragua's imports 
from Chile) is Nicaragua's second largest global import (17% of Nicaragua's global imports), but 
corresponds to Chile's seventh largest global export (4%). Together with vegetables (20% of Nicaragua's imports from Chile), it constitutes more than half of Nicaragua's imports from Chile. 
Chile's largest global import, base metals (representing 39% of Chile's global exports) represents 
a negligible part of Nicaragua's imports from Chile.  
                                               
5 The Charts are constructed on data ex tracted from UNSD Co mtrade database.  WT/REG344/1 
 
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  Chart  1.2 Chile and Nicaragua: Product comp osition of merchandise trade, annual 
average (2009-2011) 
Total: US$110 million Total: US$435 billion
Total: US$ 11 billion Total: US$ 430 billionTotal:  US$ 1.0 billion
Total:  US$ 69 million8983Chile's imports from Nicaragua (%) 
34
29141311Nicaragua's Global Exports (%)
33
20161066333Nicaragua's imports from Chile (%)
39
247654438Chile's Global Exports (%)25
23
138555312Chile's Global Imports (%)
23
17
1596655339Nicaragua's Global Imports(%)
Animal 
products
Vegetables
Prepared 
FoodsChemicalsPlastics, 
rubber
Wood Articles
Wood pulp MachineryVehicles
MiscellaneousMineralsBase metalsFats and Oils Textiles
Precious stonesOther
 
Source: UNSD Comtrade. 
 
1.3  Trade in services and investment 
1.7.  In 2012, Nicaragua's share of total commerc ial services exports and imports was 0.01% and 
0.02% respectively. Chile's shares represented respectively 0.29% and 0.35% of world exports 
and imports. With total commercial services exports of US$625 million, and imports of US$874 million, Nicaragua was the world 111
st largest exporter and 114th importer compared to 
Chile's ranking as the world 32nd largest exporter and importer (with commercial services exports 
of US$12.5 billion and imports of US$14.7 billion).  
1.8.  Charts 1.3 and 1.4 below show the breakdown of trade in commercial services and 
investment for Nicaragua and Chile based on data for the period 2000-2012. Trade in commercial 
services data shows, for Chile and Nicaragua, a steady increase in both exports- and imports 
throughout the period with the exception of 2009. While transportation services constitute more 
than half of Chile's imports and exports of commerc ial services, for Nicaragua, travel represents its 
largest exports and one of the two most important imports (together with transportation services). 
For both imports and exports, the value of Chile's global trade in commercial services is close to 
twentyfold the value of Nicaragua's global trade in services. Chart 1.5 depicts FDI flows for the 
Parties with the world, showing a steady increase for both Parties, based on the available data. 
Although Chile's outward investment has also been increasing, it remains a net recipient of FDI. Data on outward FDI investment by Nicaragua are not available. WT/REG344/1 
 
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  Chart 1.3 Chile: Trade in commercial services with the world, 2000-2012 
 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information 
servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesInsurance services0.002.004.006.008.0010.0012.0014.0016.0018.0020.00
0.002.004.006.008.0010.0012.0014.0016.0018.0020.00
2000 2002 2004 2006 2008 2010 2012A. Chile: Exports 
(USD Billion) 
0.002.004.006.008.0010.0012.0014.0016.0018.0020.00
0.002.004.006.008.0010.0012.0014.0016.0018.0020.00
2000 2002 2004 2006 2008 2010 2012B. Chile: Imports 
(USD Billion) 
 
 
Note:  Data on Communications, Computer and information Services, and Financial services (2009-2012) 
are based on estimates. Data on Other business services (2000-2007) includes more items than in 
the international agreed definition.  
 
Source: IMF and WTO - ITIP Database. 
 
Chart 1.4 Nicaragua: Trade in commercial services with the world, 2000-2012 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information 
servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesInsurance services0.000.100.200.300.400.500.600.700.800.901.00
0.000.100.200.300.400.500.600.700.800.901.00
2000 2002 2004 2006 2008 2010 2012A. Nicaragua: Exports 
(USD Billion) 
0.000.100.200.300.400.500.600.700.800.901.00
0.000.100.200.300.400.500.600.700.800.901.00
2000 2002 2004 2006 2008 2010 2012B. Nicaragua: Imports 
(USD Billion) 
 
 
Note: Data on Computer and information services (2009-2012) are based on estimates.  
Data on Other business services (2000-2007) includ es more items than in the international agreed 
definition.  
 
Source: IMF and WTO - ITIP Database.  
 
  
 
   WT/REG344/1 
 
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  Chart 1.5 Chile and Nicaragua: Foreign dire ct investment with the world, 2000-2012 
0.050.0100.0150.0200.0250.0
0.050.0100.0150.0200.0250.0
2000
200120022003200420052006200720082009201020112012A. Chile
(USD Billion) 
Inward
Outward
0.02.04.06.08.010.0
0.02.04.06.08.010.0
2000
2001
20022003200420052006
2007
2008200920102011
2012B. Nicaragua
(USD Billion) 
Inward
Outward
 
Note: Data on outward FDI is not available for Nicaragua.  
 Source: UnctadStat. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Treaty on Free Trade between Chile and Central America6 (hereinafter referred to as the 
Treaty) was signed on 19 October 1999 between Ch ile and each of the five Central American 
States.7 It establishes the basis for a Free Trade Area between the six Parties. The bilateral 
protocol between Chile and Nicaragua, which forms an integral part of the Treaty and contains, 
inter alia , the lists of concessions granted bilaterally on trade in goods and in services, was signed 
on 22 February 2011. As the Chile/Central Americ a Treaty applies bilaterally between Chile and 
each of the Central American States8, the present Factual Presentation  only presents the features 
of the Chile/Central America Treaty which apply to bilateral relations between Chile and Nicaragua and which constitute the Free Trade Agreement be tween Chile and Nicaragua (hereinafter called 
the Agreement).
9  
2.2.   The Agreement entered into force on 19 October 2012.  2.3.  The Parties notified the goods and services aspects of the Agreement to the WTO on 14 June 
2013, in document WT/REG344/N/1–S/C/N/697. The notification was made pursuant to 
Article XXIV:7(a) of the GATT 1994 for goods, and to Article V:7(a) of GATS for services. The text 
of the Agreement, together with its Annexes, is available on the Parties' official websites: 
Nicaragua : 
http://www.mific.gob.ni/COMERCIOEXTERIOR/ ACUERDOSCOMERCIALE SVIGENTES/TLCNicar
aguaChile/tabid/782/language/en-US/Default.aspx  
 
 Chile :    
http://www.direcon.gob.cl/detalle -de-acuerdos/?idacuerdo=6290  
 
2.2  Structure of the Agreement 
2.4.  The Treaty, covering trade relations betw een Chile and the Central American States, is 
composed of twenty-one Chapters, organized in  seven Parts. It also contains Annexes and 
                                               
6 Original name in Spanish: "Tratado de Libre Comercio entre Chile y Centroamérica". 
7 Costa Rica, El Salvador, Guatem ala, Honduras, and Nicaragua. 
8 Article 1.01. 
9 The bilateral protocols between Chile and the other Central American parties are presented in WTO 
documents WT/REG136/3 and WT/REG136/4 for Costa Rica , WT/REG165/4 and WT/REG165/5 for El Salvador, 
WT/REG312/1/Rev.1 for Guatemala and WT/REG303/1. WT/REG344/1 
 
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  Appendices, related to specific Chapters of the Treaty and which include the Parties' Schedules for 
liberalization in goods. The Treaty is complemented by the Bilateral Protocol (hereinafter "the Protocol") between Chile and Nicaragua. 
2.5.  For convenience, when making reference to Articles of or Annexes to the Treaty, we will, in 
this factual presentation, use the terms "Articles of (Annexes to) the Agreement". 
2.6.  Box 2.1 below summarizes the legal framework established by the Agreement. Box 2.1 Structure of the Agreement 
Chapters and 
Annexes Title/description 
PART I: GENERAL PROVISIONS 
Chapter 1 Initial provisions 
Chapter 2 General Definitions 
PART II: TRADE IN GOODS 
Chapter 3 National Treatment and Market Access  
Chapter 4 Rules of Origin 
Chapter 5 Customs Procedures  
Chapter 6 Safeguard Measures 
Chapter 7 Unfair Trade Practices 
PART III: TECHNICAL BARRIERS TO TRADE 
Chapter 8 Sanitary and Phytosanitary Measures 
Chapter 9 Standardization and Metrological Meas ures, and Authorization Procedures  
PART IV: INVESTMENT, SERV ICES AND RELATED MATTERS 
Chapter 10 Investment 
Chapter 11 Cross-Border Trade in Services 
Chapter 12 Air Transport 
Chapter 13 Telecommunications 
Chapter 14 Temporary Entry of Business Personal 
PART V: COMPETITION POLICIES 
Chapter 15 Competition Policies 
PART VI: GOVERNMENT PROCUREMENT 
Chapter 16 Government Procurement 
PART VII: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 
Chapter 17 Transparency 
Chapter 18 Administration of the Agreement 
Chapter 19 Dispute Settlement 
Chapter 20 Exceptions 
Chapter 21 Final Provisions 
Bilateral Protocol and its Annexes   
Annex 3.04(2) (Tariff elimination programme)  
Section C of Annex 4.03 (Specific rules of origin);  
Annexes I, II, and III of Chapter 11, containing the rese rvations and limitations related to cross-border trade 
in services  
Source: WTO Secretariat based on the Agreement. WT/REG344/1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.  The Parties commit to eliminate and not introduce any non-tariff barriers to trade, except (i) 
if those are in conformity with Articles XX or XXI of GATT 1994, and (ii) those regulated by 
Chapters 8 and 9 of the Agreement (respectively SPS measures and measures related to 
normalization and metrology, as well as authorization procedures). 
3.2.  The Parties commit not to maintain or introduce any new import restriction or prohibition, 
unless provided for by Article XI of GATT 1994, which is incorporated into and forms an integral 
part of the Agreement (Article 3.10). Except as  provided for by the provisions related to 
antidumping and countervailing measures, the Agre ement prohibits import price requirements. In 
case a Party adopts or maintains an import prohibition or restriction, consultations shall take place 
between the Parties with a view to avoid undue distortions of price mechanisms, sale and 
distribution of goods in either of the Parties. The Parties are however authorized under Annex 3.04(6), to use price bands mechanisms for imports from the other Party (Section 3.1.3 
below). 
3.3.  Annex 3.10(6) foresees, as an exception to the prohibition of import restrictions, that Chile 
may adopt or maintain measures related to the import of used vehicles.  
3.1.1  General provisions 
3.4.  Preferential trade in goods between the Pa rties is governed by Chapters 3 to 9 of the 
Agreement.
10 Chapters 15 to 21 are applicable to both trade in goods and trade in services, as 
appropriate.  
3.5.  The Parties agree to apply national treatment to each other's' goods in accordance with 
Article III of the GATT 1994 and other relevant WTO Agreements (Article 3.03). Annex 3.10(6) 
foresees however that Chile may adopt or maintain measures related to the import of used 
vehicles.11 
3.1.2  Liberalization of trade and tariff lines 3.6.  The tariff elimination programme agreed by the Parties is contained in Annex 3.04(2) to the 
Agreement, attached to the Protocol. The Protocol establishes the modalities applicable to the 
liberalization programme for Chile (Section A) and for Nicaragua (Section B). During the tariff elimination process, the Parties commit to apply in their bilateral trade the lower of the MFN duty or the duty resulting from the tariff elimination programme.  
3.7.  Articles 3.05 through 3.07 of the Agreement contain special disciplines applicable to 
temporary admission of goods
12, duty-free import of commercial samples of negligible value as 
well as the import of printed advertising material s, and treatment applicable to goods re-imported 
after having been repaired or altered. 
3.8.  Upon request by either Party, the Part ies shall consult to consider accelerating the 
implementation of the tariff elimination programme (Article 3.04, paragraph 4).  
3.1.3  Liberalization schedule 
3.9.  The customs duties resulting from the tariff elimination programme are established on an 
ad valorem  basis. The Parties are however authorized to use price bands mechanisms according to 
the modalities contained in Annex 3.04(6), which foresees that the tariff elimination programme 
does not apply to specific duties derived from the price bands mechanisms. In the case of Chile, 
                                               
10 Chapter 9 also covers some elemen ts relevant for trade in services. 
11 As an exception to the national treatment principle and if in conformity with Chile's Law 18.483. 
12 Including the tax exemption by Chile for such prod ucts as established by Article 106 of the Customs 
Ordinance, contained in the Decree No 2 from the Ministry of Finance, dated 21 July 1998 (Annex 3.05). WT/REG344/1 
 
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  the products which may continue to be subject to the price bands are: some wheat products and 
flour13; some vegetable oils and fats14; and some cane or beet sugar products.15  
3.10.  Chile's Schedule defines five categories . Category A covers products for which tariff 
elimination takes place immediately at the entry into force of the Bilateral Protocol. Category B 
covers products16 whose tariffs are eliminated in five steps, with duty free treatment granted on 
1 January 2016. Category C covers products17 that will be granted duty free treatment by 
1 January 2021, after ten successive reductions. Moreover, for some sugar and sugar 
confectionery (HS 1701.11.00 to 1701.99.90) in Category  TA and originating in Nicaragua, the 6% 
ad-valorem duty will not be levied according to a progressive reduction programme which ended 
on 1 January 2012 with the complete elimination of the ad valorem  part of the duty. The specific 
duty attached to these products shall however cont inue to be levied for the products included in 
and according to Chile's Law N° 18,525. Finally, Category "EXCL" contains products18 which are 
excluded from the liberalization programme.  
3.11.  Nicaragua's Schedule defines five categori es. Category A covers products for which tariff 
elimination takes place immediately at the entry into force of the Protocol. Category B covers 
products19 which will be eliminated in five steps, with duty free treatment to be granted on 
1 January 2016. Category C covers products20 that will be granted duty free treatment by 
1 January 2021, after ten successive reductions. Category D covers products21 that will be granted 
duty free treatment by 1 January 2026, after fift een successive reductions. Moreover, a number of 
products22 in Nicaragua's Schedule under Category "EX CL" are excluded from the liberalization 
programme. For Categories B, C, and D, Annex 3.04(2) establishes how the progressive 
liberalization takes place depending on what the base rate is (between 5% and 60%). 
3.12.  The Section below presents the Parties' liberalization programmes.  3.1.3.1  Chile 
3.13.  Chile's applied tariff in 2012 consisted of 7,715 lines at the HS eight-digit level (HS 2007). 
99.9% of the tariffs were ad valorem  and 8 lines had non- ad valorem  tariffs. 35 lines were duty 
free, representing 0.5% of Chile's total tariff, corresponding to a negligible part of its imports from 
Nicaragua during 2009-2011. Table 3.1 shows the scheduled duty elimination in terms of tariff 
lines and trade, as applied by Chile to imports from Nicaragua. Following the entry into force of the Agreement, an additional 7,489 lines (97.1% of Chile's tariff) became duty-free for imports from Nicaragua. As a result, 97.6% of Chile's tariff was duty free for imports from Nicaragua (in 2012), 
corresponding to 74.8% of imports by value from  Nicaragua. By the end of the implementation 
period (2021), 7,678 tariff lines, or 99.5% of Chile's tariff will be duty free for imports from 
                                               
13 Sub-heading 1001.90 and Heading 1101. 
14 Part of Headings 1507 through 1515.  
15 Part of Heading 1701. 
16 Some cereals and products of the milling industry, some oil seeds and grain, some vegetable fats and 
oil, some sugar and sugar confectionery, some cocoa an d cocoa preparations, some preparation of cereals and 
other edible preparations, some oil residues, and some mineral fuels and oil products.  
17 Rice, some types of lime, retreated and used  tyres, and raw hides and bovine skins.  
18 Including some live bovine animals, some wheat and meslin, some other cereal flours, some sugar 
and sugar confectionary, some retreated and used tyre s, and some worn textile articles and used rags. 
19 These products can be found in most of the HS Chapters, except in Chapters 05, 13, 14, 18, 24, 26, 
29, 30, 31, 43, 45, 47, 50, 51, 55, 61 through 64, 66, 75, 77 through 81, 86, 88, 93, 95 and 97. 
20 Category C is composed of some products from HS Chapters 01 through 04 (some live animals and 
animal products); 07, and 09 through 12 (some vegetabl e products); 15 (animal or vegetable fats and oils); 
19 through 22 (some prepared food); 25 (some minerals); 34 through 38 (some chemicals); 39 and 40 (some plastics and rubber); 41 and 43 (some hi des and skins); 44 (some wood and articles of wood); 48 (some paper 
and articles of paper pulp); 53, 54, and 61 through 63 (some textiles and textiles articles); 64 through 66 (some footwear and headgear); 68 (some articles of plaster); 71 (some jewellery); 72, 73, 76, 82 and 83 (some base metals and related products); 84 and 85 (some machinery); 87 (vehicles); 93 (arms and ammunition); and 94 and 95 (some furniture and articles for games and sports).  
21 Some agricultural products from HS Chapters 03, 07, 15, and 18 through 22; some plastics from 
Chapter 39; some wood articles from Chapter 44; some textiles, textiles articles, as well as footwear from 
Chapters 59 through 64; some metal products from Chapters 73 and 76; some machinery from Chapters 84 
and 85; and some furnit ure from Chapter 94. 
22 Excluded products include some live animals and animal products from HS Chapters 01 through 04, 
some prepared food from Chapters 16,  19, and 22; and some raw hides an d skins of animals from Chapter 41. WT/REG344/1 
 
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  Nicaragua, corresponding to 74.8% of its imports from Nicaragua. 37 tariff lines (corresponding to 
0.5% of Chile's tariff) will remain dutiable, repres enting 25.2% of Chile's imports from Nicaragua. 
This includes five tariff lines that are subject to Chile's price band system and are not liberalized (two of these are excluded from liberalization  and three lines are under the TA category and 
subject to specific duties).
23 
Table 3.1 Chile: Tariff elimination commitmen ts under the Agreement and corresponding 
average trade 
Duty phase-out 
period Number of 
lines % of total lines in 
Chile's tariff 
schedule Value of Chile's imports 
from Nicaragua 
(2009-2011) in million 
US$ % of Chile's total 
imports from 
Nicaragua 
(2009-2011) 
MFN Duty Free (2012) 35 0.5  0.0 0.0 
2012 7,489 97.1 6.6 74.8 
2016 133 1.7  0.0 0.0 
2021 21 0.3 0.0 0.0 
Remain dutiable 37 0.5  2.2 25.2 
Total 7,715 100.0  8.8 100.0 
 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2007 nomenclature.  Source: WTO estimates based on data provided by Chile.  
 
3.14.  Table 3.2 shows Chile's tariff elimination, by HS section. The 37 lines that will remain 
subject to duties once implementation is completed are found in sections I (live animals); II 
(vegetables); IV (prepared food); VII (plastics and rubber); VIII (hides and skins); and XI (textiles 
and textiles articles), with final average tariffs at 6%, equal to the MFN applied rate, as illustrated by Chart 3.1.  
Table 3.2 Chile: Tariff elimination und er the Agreement, by HS section 
HS 
Section MFN 
average 
% Total 
No. of 
lines MFN 
duty-free 
(2012) Number of duty-free 
lines under the 
agreement No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2012 2016 2021 
I 6.0 604   602 1   1 6 
II 6.0 405   373 23 7 2 6 
III 6.0 60   34 26       
IV 6.0 415   349 50 1 15 6 
V 6.0 196   158 32 6     
VI 6.0 1232   1,231 1       
VII 6.0 304   295   7 2 6 
VIII 6.0 81   78     3 6 
IX 6.0 158   158         
X 5.9 209 4 205         
XI 6.0 1,093   1,079     14 6 
XII 6.0 109   109         
XIII 6.0 187   187         
XIV 6.0 60   60         
XV 6.0 637   637         
XVI 6.0 1,142 2 1,140         
XVII 5.5 333 29 304         
XVIII 6.0 258   258         
XIX 6.0 23   23         
XX 6.0 202   202         
XXI 6.0 7   7         
                                               
23 The excluded lines are HS10019000 (wheat), HS11010000 (wheat flour); the three lines under the TA 
category are HS17011100, HS17011200, and HS17019100 (sugar). WT/REG344/1 
 
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  HS 
Section MFN 
average 
% Total 
No. of 
lines MFN 
duty-free 
(2012) Number of duty-free 
lines under the 
agreement No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2012 2016 2021 
Total 6.0 7,715 35 7,489 133 21 37 6 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on  data provided by Chile.  
 
Chart 3.1 Chile: Average of duti able rates, by HS Chapter 
01234567
01 10 11 17 40 41 63HS 01-97
MFN
Preferential
 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source: WTO Estimates based on data provided by Chile. 
 
3.1.3.2  Nicaragua 
3.15.  Nicaragua's applied tariff in 2012 consisted of 7,354 lines at the HS eight-digit level all of 
which have ad valorem  rates of duty. Table 3.3 shows the sch eduled duty elimination in terms of 
tariff lines and trade, as applied by Nicaragua to imports from Chile. Before the entry into force of 
the Agreement (in 2012), 3,413 tariff lines (46.4% of Nicaragua's tariff) were already duty-free on 
an MFN basis. On the entry into force of the Agreement (2012), an additional 1,499 lines (20.4% of Nicaragua's tariff) became duty-free for import s from Chile. As a result, 66.8% of Nicaragua's 
tariff was duty free for imports from Chile, corresp onding to 81.9% of its imports from Chile. Three 
further phases of duty elimination are scheduled for 2016, 2021 and 2026. Ten years following implementation, by 2021, 96.1% of Nicaragua's ta riff will be duty free for imports from Chile, 
corresponding to 98.7% of imports. By the end of the implementation period (2026), 7,242 tariff 
lines, corresponding to 98.5% of Nicaragua's tariff will be duty free for imports from Chile. At the 
end of the transition period, 112 tariff lines, for wh ich duties are currently levied on an MFN basis, 
will remain dutiable, representing a margin al part of imports by value from Chile. 
 
  
 
  WT/REG344/1 
 
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  Table 3.3 Nicaragua: Tariff eliminatio n commitments under the Agreement and 
corresponding average trade 
 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2012 nomenclature.   Source: WTO estimates based on data provid ed by Nicaragua and WTO-IDB Database.  
 
3.16.  Table 3.4 shows Nicaragua's tariff elimination, by HS section. The 112 lines that will remain 
subject to duties once implementation is completed are found in sections I (Animal and animal 
products), IV (Mineral products), and VIII (Hides and skins), with final average tariffs ranging from 7.5% to 32.8%, equal to the MFN applied rate; the highest remaining tariffs by HS Chapter as 
illustrated by Chart 3.2 are found in HS 17 (55%), and HS 2 (36%).  
Table 3.4. Nicaragua: Tariff eliminatio n under the Agreement, by HS section HS 
Section MFN 
average 
% Total 
No. of 
lines MFN 
duty-
free 
(2012) Number of duty-free lines under the agreement  No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2012 2016 2021 2026 
I 15.2 485 45 251 64  35 15 75 32.8  
II 9.4 441 148 90 178 23 2     
III 9.8 83 9 4 10  5 55     
IV 12.8 343 39 71 167 11 24 31 24.0 
V 2.8 197 123 39 31  4       
VI 2.1 1171 923 95 95 58       
VII 4.6 360 150 77 88  43 2     
VIII 8.1 111 22 41 33 9   6 7.5 
IX 7.9 141 28 13 61  36 3     
X 5.0 312 163 87 58 4       
XI 9.6 926 119 314 193  276 24     
XII 12.8 65 2 19 7 11 26     
XIII 6.3 176 80 31 64  1       
XIV 6.9 54 15 24 3 12       
XV 2.9 713 485 47 114  60 7     
XVI 2.5 996 783 96 99 8 10     
XVII 6.0 314 77 74 48  115       
XVIII 3.7 243 159 49 35         
XIX 12.6 21   5 1  15       
XX 10.1 193 43 63 32 45 10     
XXI 7.8 9   9           
Total 6.2 7,354 3,413 1,499  1,381  771 178 112 29.0 
 
Note: For tariff lines subject to TRQs, only the out- of-quota duty is included in the tariff-related 
calculations.  Based in HS 2012 nomenclature.  
 
Source: WTO estimates based on data prov ided by Nicaragua and WTO-IDB Database. Duty phase-out 
period Number 
of lines % of total lines in 
Chile's tariff schedule Value of Nicaragua's 
imports from Chile 
(2010-2012) in million 
US$ % of Nicaragua's total 
imports from Chile 
(2010-2012)  
MFN Duty Free 
(2012) 3,413 46.4  10.2 57.1 
2012 1,499 20.4 4.4 24.8 
2016 1,381 18.8  2.3 12.7 
2021 771 10.5 0.7 4.1 
2026 178 2.4  0.2 1.3 
Remain dutiable 112 1.5 0.0 0.0 
Total 7,354 100.0  17.9 100.0 WT/REG344/1 
 
- 15 - 
 
  Chart 3.2 Nicaragua: Average of dutiable rates, by HS Chapter 
0102030405060
01 02 04 16 17 19 22HS 01-97
MFN
Preferential
 
Note: For tariff lines subject to TRQs, only the out- of-quota duty is included in the tariff-related 
calculations.  Based on the HS 2012 nomenclature. 
 Source: WTO estimates based on data prov ided by Nicaragua and WTO-IDB Database. 
 
3.1.4  Tariff rate quotas 
3.17.  Neither under the Agreement nor under the bilateral protocol between Chile and Nicaragua 
have the Parties made commitments with respect to tariff rate quotas.  
3.2  Rules of origin 
3.18.  Disciplines regarding rules of origin are set out in Chapter 4 of the Agreement.24 Section C 
from Annex 4.03 (specific rules of origin) has been  attached to the bilateral protocol of 2011 and 
forms an integral part of Chapter 4 and of the Agreement. 
3.19.  Articles 4.02 through 4.05 provide the substantive rules. A good25 is considered as 
originating when: 
a. it is wholly obtained or produced entirely in the territory of one or more Parties;  
b. it is produced in the territory of one or more Parties, using exclusively originating 
material (as defined in Chapter 4); 
c. it is produced in the territory of one or more Parties, using non-originating materials, 
which comply with a change of classification  (CTC), a regional value content (RVC), or 
other requirement, as specified in Annex 4.03, which contains the Specific Rules; 
d. it complies with the RVC26, determined in Article 4.07, and it is produced in the territory 
of one or more Parties, though one or more non-originating parts or materials do not 
comply with the CTC requirement, if such lack of compliance is the result of: 
i. the good being imported once, but without assembly; 
                                               
24 Article 4.01 defines the terms used in Chapter 4. 
25 A set of goods is originating only if each good in the set is originating and meet the requirements 
established in Chapter 4. 
26 The RVC is determined in Article 4.07. It shall, in principle, not be lower than 30%, unless specifically 
provided for in Annex 4.03. This specific requirement does not apply to goods contained in HS Chapters 61 to 63 (Apparel and clothing accessories, made-up textiles articles and worn clothing, in particular). WT/REG344/1 
 
- 16 - 
 
  ii. the good and its parts being classified under the same Heading because the division 
into Sub-headings is not possible; or 
iii. the good and its parts being classified under the same Heading but distinguished 
through specific descriptions. 
3.20.  For goods covered by d) above, which comply with the Specific Rules contained in 
Annex 4.03, RVC compliance shall not be necessary. 
3.21.  When goods are not wholly obtained or prod uced in one or more Parties, or when they are 
not entirely produced in one or more Parties exclusively from originating materials of one or more 
Parties, they must satisfy the product specific ru les in Annex 4.03. Its Section A contains general 
interpretative notes, while Section B lists the specific rules of origin applicable between the Parties.
27 Section C, attached to the 2011 Protocol between Chile and Nicaragua, complements 
Annex 4.03. In most cases, the specific rules require a change to a specified HS heading (four 
digit) or subheading (six digit), sometimes with exceptions. For a number of products, no CTC is required provided that a RVC (usually no less th an 30%) is reached. In a few cases, the product 
specific rules define a manufacturing or processing operation that confers origin. This is 
particularly the case for some agricultural goods, some chemical and pharmaceutical products as well as plastics, and for some goods with a historical value.  
3.22.  As a principle, and according to paragraph 3 of Article 4.02, a Party may cumulate origin in 
relation to goods from countries for which the Treaty on Free Trade between Chile and Central 
America is in force. Moreover, goods originating from the territory of one Party of the Treaty, incorporating goods from the territory of another Party, shall be considered as originating from the 
latter (Article 4.06). However, in cases involving Chilean goods, the Parties shall, two years after 
the entry into force of the Agreement, establish a work programme to examine the possibility for 
material originating in Chile to benefit from cumulation with a view to comply with the 
intra-Central American rules of origin standards, provided the final goods which incorporate such 
materials enjoy free trade, both between Chile and each Central American country as well as between them
28 (Article 4.02, paragraph 5). No such work programme has yet been established. 
3.23.  For the determination of origin, the princi ples of the WTO Agreement on Customs Valuation 
apply to internal transactions, unless otherwise provided for in the Agreement. In case of conflict, the specific provisions of the Agreement would prevail (Article 4.02, paragraph 2). Additional 
disciplines on minimum operations not conferring origin, the treatment of indirect materials, the de 
minimis  level under which non-originating materials not complying with rules conferring origin may 
still be determined as originating for the purposes of the Agreement
29, fungible goods, sets or 
assortments of goods, accessories, spare parts and tools, containers and packaging materials in 
which a good is packaged for retail, containers fo r shipment, and transhipment, direct shipment or 
international transit are in Articles 4.05 to 4.14. 
3.24.  Moreover, Chapter 5 on customs procedures contains a series of administrative rules 
applicable to, inter alia , the certification and declaration of origin, which shall conform to a single 
certificate which has been elaborated by the Parties (Article 5.02). Such a single certificate of origin has been negotiated between Chile and the Central American States
30. 
3.25.  Disciplines related to the claim for prefer ential treatment, the production of supporting 
documents and other obligations related to importations, the validity of proof of origin, and 
advance ruling are contained in Articles 5.03 to 5.11. In particular, a detailed verification process is also established by the Agreement (Article 5.08); penalties against violation of each Party's 
customs-related laws and regulation shall be maintained or adopted (Article 5.11); and 
confidentiality rules are established (Article 5.07). 
                                               
27 These rules are also applicable between Chile and the other Central American States. 
28 In case such treatment is granted to a third party before it is granted to Chile, Chile should 
immediately benefit from a similar trea tment (Article 4.02, paragraph 6). 
29 The de minimis  rule is not applicable to material used in the production of goods classified under 
HS Chapters 01 to 27 (Agricultural and mineral products). 
30 The single certificate is available at http://www.direcon.gob.cl/detalle-de-acuerdos/?idacuerdo=6290   
and at http://www.mific.gob.ni   WT/REG344/1 
 
- 17 - 
 
  3.3  Export duties and charges,  and quantitative restrictions 
3.26.  The Parties commit not to maintain or introduce any new export restriction or prohibition, 
unless provided for by Article XI of GATT 1994 (Art icle 3.10). The Agreement prohibits export price 
requirements. In case a Party adopts or maintains an export prohibition or restriction, 
consultations shall take place between the Parties with a view to avoid undue distortions of price 
mechanisms, sale and distribution of goods in ei ther of the Parties. Nevertheless, Annex 3.10(6) 
provides for some exceptions to the principle of prohibition of export restrictions. This is 
particularly the case for exports of a number of basic food products31, some worn clothing and 
rags32, as well as some used products33.  
3.27.  Moreover, a Party may not maintain or adopt an export tax on goods destined to the other 
Party unless such taxes are imposed for internal consumption (Article 3.14).  
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures (SPS) 
3.28.  Chapter 8 of the Agreement covers Sanitary and Phytosanitary Measures (SPS). The 
Agreement establishes a framework, based on the WTO SPS Agreement, concerning the principles, standards and procedures related to SPS measures which affect, directly or indirectly, trade 
between the Parties. Through mutual co-operation, th e Parties shall facilitate trade, while avoiding 
that it creates a SPS risk. They also commit to prevent the introduction or dissemination of pests or diseases and to improve plant and animal life or health as well as food safety (Article 8.02). 
3.29.  The Agreement reaffirms the Parties' rights (Article 8.03) and obligations (Article 8.04) 
based on the disciplines contained in the WTO SPS Agreement.
34 
3.30.  The Agreement underlines that the Parties will base their SPS measures on international 
standards and guidelines, in particular those of the IPPC, OIE, and Codex, but that they may 
introduce or maintain SPS measures which result in a different level of SPS protection if there is a 
scientific justification (Article 8.05). The Parties also commit to establish harmonized systems in SPS-related areas, such as sampling methods; testing; inspection and certification of animals, 
plants, and their products and by-products; as well as food safety. Other provisions in Chapter 8 
highlight certain aspects of provisions in the WTO SPS Agreement. This is in particular the case for equivalence (Article 8.06), risk assessment and determination of the appropriate level of protection (Article 8.07), and recognition of pest- or disease-free areas or areas of low pest or 
disease prevalence (Article 8.08). Annex C of the WTO SPS Agreement is applicable to the Parties 
in relation to control, inspection and approval procedures (Article 8.09). 
3.31.  The Agreement contains transparency provisions (Article 8.10), which are essentially based 
on disciplines in Annex B of the WTO SPS Agreement. The Parties shall use the Enquiry points 
established under the WTO SPS Agreement as communication channels.  
3.32.  A specific mechanism for regional co-operation is established through a Committee on 
SPS measures (Article 8.11).
35 The Committee shall, inter alia , elaborate a roster of qualified 
specialists in the areas of food safety, plant and animal health, who may serve in the context of ad 
hoc expert groups. 
                                               
31 For example: some vegetable oil, rice, sugar, coff ee, some chicken or beef meat, fish, beans, some 
types of flour, some dairy products, corn, some bread, and salt.  
32 Products covered under HS 63.09 and 63.10. 
33 Products such as crap of rubber, used tyres, used machinery and electr ical apparatus, as well as used 
vehicles. Nicaragua indicated however that a number of me asures applicable to some of these products are not 
in force currently. 
34 The definitions of terms used in  this Chapter refer directly to those in Annex A of the WTO SPS 
Agreement, as well as those in the glossary of harm onized terms from the International Office of Epizootics 
(OIE), the International Plant Protection Convention (IPPC), and the Codex Alimentarius (Codex). 
35 Annex 8.11 lists the authorities of both Parties competent on SPS matters. WT/REG344/1 
 
- 18 - 
 
  3.4.1.2  Technical barriers to trade (TBT) 
3.33.  Chapter 9 of the Agreement covers standardization and metrological measures, and 
authorization procedures. It addresses measures related to Technical Barriers to Trade (TBT), but also expands coverage to other areas of trade. While it reaffirms the Parties' existing rights and 
obligations under the WTO TBT Agreement, it also adds to them specific disciplines. Chapter 9 
does not apply to SPS measures. 
3.34.  The Agreement recognizes each Party's right to elaborate, adopt and apply standardization 
and metrological measures, and authorization procedures, as well as technical regulations and 
procedures for assessment of conformity, which pe rmit the fulfilment of legitimate objectives. 
Consistent with WTO rules, such measures and procedures shall not create unnecessary obstacles to trade between the Parties, national treatment shall be granted to products from the other Party, 
and international standards shall be taken into account, as appropriate, when elaborating such 
measures (Article 9.04). When elaborating standards and technical regulations, the Parties shall conduct a risk assessment, taking into account Article 9.05. 
3.35.  When possible, the Parties shall endeavour to ensure compatibility between their respective 
standardization measures, without reducing the level of security and protection of human, animal or plant life and health, and the environment and consumer protection. A Party shall accept the 
other Party's technical regulations, provided the objectives of its own regulations are fulfilled. In 
case equivalence is not granted, the Parties' deci sions shall be explained (Article 9.06). Moreover, 
with a view to facilitating trade, positive consideration shall be given to requests by a Party to negotiate with the other Party agreements on the mutual recognition of conformity assessment 
results (Article 9.07). Similar rules apply in relation to authorization procedures.
36 
3.36.  Each Party shall ensure, as far as possible, the traceability of its metrological standards as 
recommended by the International Bureau of Weig hts and Measures (BIPM) and the International 
Organization of Legal Metrology (OIML). 
3.37.  Transparency provisions contain notificati on obligations, using WTO formats, and at the 
entry into force of the Agreement, each Party shall designate an entity to carry out notification 
obligations as well as to function as an information centre and to respond to enquiries on matters 
covered by Chapter 9 (Article 9.10).  
3.38.  Technical co-operation and exchange of information between the Parties are also 
encouraged (Article 9.13) and bilateral co-operation is strengthened through the establishment of 
a Committee on Standardization, metrology and authorization procedures37 to, inter alia , monitor 
the implementation and operation of Chapter 9 (Article 9.12). 
3.4.2  Safeguard mechanisms 
3.39.  Chapter 6 of the Agreement contains discipl ines on safeguards. While Articles 6.02 and 6.03 
establish the fundamental rights and obligations of the Parties related to the use of bilateral and global safeguards, the procedures applicable to such safeguard measures are regulated by 
Articles 6.04.  
3.40.  According to Article 6.05, in case of a dispute about a safeguard measure, a Party may not 
request the establishment of a panel (under the dispute settlement mechanism established by the 
Agreement in Chapter 19), as long as a safeguard measure is merely proposed.  
3.4.2.1  Global safeguards 
3.41.  Each Party maintains its rights and obligations to take global safeguard measures, 
consistent with Article XIX of GATT 1994 and th e WTO Agreement on Safeguards, except those 
regarding compensation or retaliation and excl usion of a safeguard measure that would be 
                                               
36 The terms "authorization procedure" refers to all mandatory administrative processes for obtaining a 
registration, permit, license or other au thorization, for a product or a service to be produced, sold or used for 
specific purposes or under stated conditions. 
37 The national authorities representing the Parties in the Committee are listed in Annex 9.12. WT/REG344/1 
 
- 19 - 
 
  incompatible with the provisions of Article 6.03. Unless imports from a Party constitute a 
substantial part of total imports38 of the other Party and an important contribution to the serious 
injury or threat thereof39, a Party imposing a global safeguard shall exclude from such measure 
imports from the other Party. General safeguards may only take the form of tariff measures. A 
Party imposing a general safeguard on imports from the other Party shall offer compensation to 
the other Party. As in the case of bilateral safe guards, should a mutual agreement not be found on 
compensation, the other Party may impose tariff meas ures with substantially equivalent effect to 
losses caused by the imposition of a safeguard measure. 
3.4.2.2  Bilateral safeguards 3.42.  Under Article 6.02, bilateral safeguards may be introduced only if, as a result of the 
reduction or elimination of a tariff under the Agreement, an originating good is imported in such 
increased quantities, either in absolute terms or relative to domestic production, and under such 
circumstance that the imports are a substantial cause of serious injury or threat thereof to the domestic industry of the importing Party producing a like or directly competitive good. This 
possibility to use bilateral safeguards is limited to a transitional period of two years from the end 
of the period foreseen, for liberalization of tariffs on each good as established in the tariff elimination programme.
40 
3.43.  The safeguard measure may consist of either a suspension of a future tariff reduction 
foreseen in the tariff elimination programme; or an increase in the rate of duty on the product back to a level that does not exceed the lesser of (i) the MFN applied rate of duty in effect at the time the measure is applied; and (ii) the MFN applied rate of duty in effect on the day immediately 
preceding the date of entry into force of th is Agreement. The start of an investigation
41 shall be 
notified to the other Party. A measure may not be kept for more than three years, with a possibility to prolong it for an additional year, but not after the end of the transitional period, 
unless the other Party agrees. Moreover, a bilateral safeguard may not be applied on a given 
product more than twice, and in the case of a second application, a safeguard-free period 
equivalent to half of the duration of the initial measure shall be respected. Article 6.02 foresees 
the possibility of imposing provisional safeguar d measures, with certain limitations. A Party 
applying a bilateral safeguard measure shall also offer compensation to the other Party. Should a mutual agreement not be found on compensation, the other Party may impose tariff measures that 
are substantially equivalent to losses caused by the imposition of a bilateral safeguard measure. 
3.4.2.3  Safeguard measures related to  balance of payment (BOP) difficulties 
3.44.  In the event of serious BOP and external fina ncial difficulties, the Parties' right to adopt or 
maintain restrictions on trade in goods or in trade in services are preserved in accordance with 
conditions in Article 20.04, which mirrors to a large extent the BOP provisions of the WTO 
Agreements and the constitutive texts of the International Monetary Fund.  
3.4.3  Anti-dumping and countervailing measures 
3.45.  In Chapter 7 (Unfair trade practices), the Agreement confirms the Parties' rights and 
obligations under Article VI of the GATT 1994 and the WTO Agreements on Antidumping and on Subsidies and Countervailing measures (Article 7.01). The Parties also indicate their shared objective to promote important reforms in that matter and commit to joint efforts to achieve such 
reforms in the context of the WTO and the Free Trade Area of the Americas. Two years after the 
Treaty between Chile and the Central American States has entered into force for all the Parties, the Parties will establish a work programme to ex amine the possibility to promote such reforms in 
                                               
38 The "substantial part of total imports" condition is met when a Party is one of the five largest 
exporters of a given product into the territory of the Party envisaging the measure, based on data for the three previous years. 
39 When determining if a Party's imports would constitute an "important contribution to the serious 
injury or threat thereof", the investigating authorities of the other Party would consider factors such as the changes in the participation of the other Party in total imports, as well as the volume of imports of that other Party and changes that such volume has suffered. Generally , if a Party's growth rate during the period that saw 
the injurious surge of imports is significantly lower than the growth rate of total imports from all sources over 
the same period, the contribution to the serious injury is not considered "important". 
40 The end of tariff elimination for Chile is 1 January 2021 and for Nicaragua is 1 January 2026. 
41 The Parties have identified their in vestigation authorities in Annex 9.11. WT/REG344/1 
 
- 20 - 
 
  the framework of their reciprocal trade (paragra ph 2 of Article 7.02). No such work programme 
has yet been established. 
3.4.4  Subsidies and State-aid 3.46.  According to Annex 3.09, which was agreed as part of the 2011 Protocol, Chile and 
Nicaragua agreed on the shared objective of the multilateral elimination of export subsidies for 
agricultural goods and committed to work together in view of achieving an  agreement in the WTO 
to eliminate export subsidies. Chile and Nicaragua may not maintain or introduce any export 
subsidy on any agricultural good in their reciprocal trade. 
3.47.  In relation to domestic support, the Parties maintain their rights and obligations under the 
WTO. 
3.4.5  Customs-related procedures 
3.48.  The WTO Customs Valuation Agreement is applicable for customs valuation under the 
Agreement (Article 3.08). The Parties commit not to  base the determination of goods values on 
minimum values.  
3.49.  In relation to bilateral trade or originating goods, customs and consular fees may not be 
collected by the Parties (Article 3.11). Neverthele ss, according to Annex 3.11(1), attached to the 
Protocol, Nicaragua may continue to apply, for a seven-year period from the entry into force of the 
Agreement, a tax for customs service's amounting to 50 centimes of Centro American pesos per 
ton, applied to imports from Chile. This tax sh all be progressively reduced in equal annual steps 
and eliminated by 2018. 
3.50.  The provisions on marks of origin contained in Article IX of GATT 1994 are incorporated into 
and made an integral part of the Agreement.  
3.51.  In addition to aspects specifically related to the implementation of rules of origin disciplines, 
Chapter 5 of the Agreement covers customs procedures  at large, related to both import and export 
procedures. Obligations related to imports and exports are contained in Articles 5.03 and 5.04. 
Disciplines and commitments on the simplification  of certain customs procedures (Article 5.05), 
confidentiality rules (Article 5.07), advance ru ling (Article 5.09), review and appeal of 
administrative decisions (Article 5.10), sanctions (Article 5.11), uniform application (Article 5.12), 
and co-operation in customs-related matters, including through notification of relevant laws, regulations, and decisions (Article 5.13) establis h a set of common rules on customs procedures.  
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definitions 
4.1.  Rules governing trade in Cross-border trade in services
42 are found in Chapter 11. Specific 
disciplines on temporary entry of business personal are contained in Chapter 14. Investment, 
encompassing GATS mode 3 (covered investment) bu t not limited to services-related investments, 
is dealt with in Chapter 10. To complement the general disciplines on services, Chapter 12, on air transport, and Chapter 13, on telecommunications, establish rules and enhance the regulatory 
disciplines specific to these two services. Certain provisions of Chapter 9 (on standardization, 
metrological measures, and procedures of authorization
43), and of Chapter 16 (on government 
procurement) refer to certain services only. In  addition, Chapters 1, 2, and 17-21 of the 
Agreement, as well as the related Annexes, contain provisions of general application which may 
also be applicable to trade in services.  
4.2.  The measures covered by Chapter 11 include: (i) the production, distribution, marketing, sale 
and delivery of cross-border services; (ii) the purc hase, payment or use of a cross-border service; 
                                               
42 The term "cross-border services" covers services (i ) from the territory of one Party to the territory of 
another party (mode 1); (ii) in the te rritory of a Party to a consumer of another Party (mode 2), and (iii) by a 
service provider through the presence of natural person s of a Party in the territo ry from elsewhere (mode 4). 
43 Applicable to computer and computer-related services. WT/REG344/1 
 
- 21 - 
 
  (iii) the access to and use of distribution and transportation systems related to cross-border 
service provision; (iv) the presence in its territory  of a service provider of the other Party; and (v) 
the provision of a bond or other form of financial security as a condition for the provision of a cross-border service. Chapter 11 however does not cover the provision of services in the territory 
of one Party, through investment in such territory. Moreover, (i) governmental subsidies; (ii) most 
air transport services
44, including traffic rights and some auxiliary services; (iii) governmental 
service or functions45, (iv) cross-border financial services; and (v) government procurement 
(Article 11.02) are excluded from the coverage of Chapter 11. 
4.3.  Non-conforming measures are listed in Annexes I and II, which contain the Parties' 
reservations on national and MFN treatments, and local presence, while Annex III lists their non-discriminatory quantitative restrictions, in relation to market access. These Annexes were 
integrated into the Agreement through the Protocol. 
4.4.  The Parties agreed to deepen the liberalization of bilateral trade in services through future 
negotiations to be initiated under the auspices of the Free Trade Commission, with a view to 
eliminate the remaining non-conforming measures listed in Annexes I and II (Article 11.11). 
4.5.  Denial of benefits 4.6.  Under Article 11.10, a Party may deny the benefits of the relevant chapters to a service 
supplier or investor of the other Party if that person is an enterprise owned or controlled by 
persons of a third party and if the service supp lier or investor has no substantive business 
activities in the territory of the other Party.  
4.2  General provisions on trade in services 
4.2.1  National treatment and MFN 
4.7.  Under Article 11.03 on national treatment, each Party shall accord to (cross-border) service 
suppliers of the other Party treatment no less favourable than that it accords, in like 
circumstances, to its own service suppliers.  
4.8.  Under Articles 11.04 on MFN treatment, each  Party shall accord to service suppliers of the 
other Party treatment no less favourable than that it accords, in like circumstances, to service 
suppliers of non-parties to the Agreement.  
4.9.  The Parties' reservations on non-conf orming measures related to national and MFN 
treatments are contained in Annexes I and II of the Agreement. 
4.2.2  Market access 
4.10.  No provision of the type under GATS Articl e XVI exists in the Agreement. Article 11.09 on 
non-discriminatory quantitative restrictions
46 does not specifically prevent the Parties from taking 
quantitative restrictions, and thus does not guaran tee preferential access to each other's' markets. 
It however requests each Party to list, in Annex III of the Agreement, existing47 measures that 
constitute non-discriminatory quantitative restrictions. Moreover, non-discriminatory quantitative restrictions that have been or will be adopted af ter the entry into force of the Agreement shall be 
notified by one Party to the other and added to Annex III.  
                                               
44 The following air transport services are howeve r covered by the Agreement: (i) maintenance and 
repair services; (ii) specialized air transport services; and (iii) co mputerized reservation systems. 
45 Such as: law enforcement, correctional services, pension or unemployment insurance or social 
security services, social welfare, publ ic education, public health and child attention or protection of children. 
46 The term "quantitative restrictions" means measures that imposes limitations on (i) the number of 
service providers, whether in the form of numerical qu otas, monopolies, the requirement of an economic needs 
test, or through any other quantitative form; or (ii) th e number of service operations, whether in the form of 
numerical quotas, the requirement of an economic  needs test, or any other quantitative form. 
47 The term "existing" refers to the date of entry into force of the Bilateral Protocol between Chile and 
Nicaragua (19 July 2008). WT/REG344/1 
 
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  4.11.  Periodically, but at least once every two years, the Parties shall endeavour to negotiate the 
liberalization or the elimination of existing quantitative restrictions or restrictions that have been adopted by a Party after the entry into force of the Agreement. To date, there has been no notification of non-discriminatory quantitative restriction.  
4.2.3  Local presence 
4.12.  Under Article 11.06, a Party shall not requir e that a service provider from the other Party 
establishes or maintains a representative office or is a resident in the Party where it provides 
services.  
4.13.  The Parties' non-conforming measures related to local presence requirements are contained 
in Annexes I and II of the Agreement. 
4.2.4  Performance requirements 
4.14.  Article 11.07 establishes general principles th at the Parties shall endeavour to apply if they 
adopt measures relating to the requirements and procedures for granting permits, authorizations, licenses or certifications to nationals of the other Party. In particular, such measures shall be 
based on objective and transparent criteria, not more burdensome than necessary to ensure the 
quality of the service, and shall not constitute  a disguised restriction on trade in services. 
4.15.  Annex 11.13 of the Agreement contains the ru les to be followed in the professional services 
sector in the context of the harmonization of the requirements and procedures for granting 
licences. 
4.2.5  Senior managers and board of directors 4.16.  The Agreement does not contain specific provisions concerning the nationality of senior 
managers and of the Board of Directors. Howeve r, some non-conforming measures listed in 
Annex I contain requirements related to senior managers and/or board of directors (nationality and/or residence).  
4.2.6  Temporary movement of business persons
48 
4.17.  Chapter 14 of the Agreement reflects th e preferential trading relationship between the 
Parties at the time of the conclusion of the Ag reement, their mutual objective to facilitate 
temporary entry of business people of both Parties, according to the principle of reciprocity, and 
the need to establish transparent criteria and procedures for temporary entry.49 I t als o re fle c ts  
their need to ensure border security and to protect the domestic labour force and permanent 
employment in their respective territories (Article 14.02).  
4.18.  Each Party commits to grant temporary entry to business persons for the categories of 
personnel identified in Annexes 14.04 and 14.04(1), which comply with the national regulations related to health and public security, as well as for the protection of national security 
(Article 14.04). The categories of personnel covered are: (i) business visitors involved in specific 
activities; (ii) traders and investors; and (iii) personnel transferred within an enterprise. Business persons in these categories shall be considered, by both Parties, as performing activities that are 
mutually useful and beneficial. They shall be  granted a temporary resident visa, possibly 
extendable (Annex 14.04(1)). 
4.19.  In the case of business visitors seekin g to engage in a business activity listed in 
Appendix 14.04(A)(1)
50, a Party may require proof of nationality of the applicant, details of the 
                                               
48 "Business persons" are nationals from a Party pa rticipating in trade of goods or services, or 
investment activities. "Temporary movement" refers to the entry of a business person from a Party in the 
territory of the other Party without the intention to establish permanent residence.  
49 The existing immigration measures applicable by  the Parties are listed in Appendix 14.04(A)(3). 
50 The business activities covered by Appendix 14.04(A)(1) are the following: research and Design; 
agriculture, manufacture and production; marketing; sales; distribution; after-sales services; general 
services (consultants, managers, superv isors, financial services  personnel, public rela tions staff, advertising 
staff, travel agents, tour guides, tour op erators, translators,  and interpreters). WT/REG344/1 
 
- 23 - 
 
  activity to be conducted in the other Party, and its international character. Proof that the main 
source of revenue and the registered place of such an activity are located outside the Party 
concerned, and that the principal place of business and the place where most of the profit is made 
is located outside the territory of the Party granting temporary entry is also required. Neither Party 
may require, as a condition for temporary entry, prior approval procedures or petitions. 
4.20.  In the case of traders and investors, each Party shall authorize temporary entry of business 
persons with supervisory, executive or specialized  knowledge, provided that the person seeks to 
conduct substantial trade in goods or services, principally between the territories of the two 
Parties, or to establish, develop, administer or provide technical advice in order to manage a key investment in which the person or enterprise is committing a substantial amount of capital.  
4.21.  In the case of personnel transferred within an enterprise, each Party shall grant temporary 
entry to a business person that seeks to carry out managerial or executive functions or that 
possess specialized knowledge. Each Party may require that the person has been employed by the company, continuously, during one year, within the three years immediately preceding the date of 
filing of the application.  
4.22.  For all these three categories, neither Party may require labour certification tests as a 
condition for temporary entry of traders and investors, or impose any numerical restriction relating 
to temporary entry.  
4.23.  The Parties agree to jointly develop criteria, definitions, and interpretations for the proper 
implementation of Chapter 14. Moreover, in addi tion to the provisions on transparency in 
Chapter 17, each Party shall provide the other Party such materials that will enable it to be aware 
of measures relating to Chapter 14. Furthermore, no later than one year after the date of entry 
into force of the Agreement, the Parties will pr epare, publish and make available to interested 
parties a consolidated document with explanatory material regarding the requirements for 
temporary entry (Article 14.05). While such a document has not yet been prepared, both Parties 
provide information on temporary entry for each category of business people covered by the Parties' commitments contained in the Agreement. 
4.24.  In case temporary entry to the territory of a Party is denied, the Dispute Settlement 
Mechanism in Chapter 19 may be used by a Party only if there is a recurrent pattern of practice, and if the affected business person has exhausted all internal administrative recourse available to him/her (Article 14.06). 
4.3  Liberalization commitments 
4.25.  Liberalization modalities for Chapter 11 follow a "negative list" approach which assumes that 
all sectors or sub-sectors covered by these chapters  are liberalized, in terms of the disciplines of 
national treatment, MFN, and local presence, unless otherwise provided in the Parties' 
non-conforming measures in Annexes I and II.  
4.26.  The Agreement does not guarantee pr eferential access to each Party's market. 
Nevertheless, the obligation to list the measures that constitute non-discriminatory quantitative 
restrictions, in Annex III to the Agreement, give s an indication of the types of market access 
restrictions that may be applied in the context of bilateral trade in services.  
4.27.  The sub-sections below present the Parties' liberalization commitments under the 
Agreement as compared to their GATS commitments. Structural differences between the GATS and 
the trade in services provisions of the Agreement have to be taken into account. After summarizing MFN exemptions as well as horizontal  limitations in the Agreement, Tables 4.1 and 
4.2 summarize their specific commitments under  the Agreement, and compare them with the 
Parties' GATS Schedules. The Tables also indicate in which sectors or subsectors the Parties have reservations. Improvements in existing GATS  commitments are either a reduction in the 
limitations applicable to national treatment, additional sub-sectors in which commitments are 
made, and/or new commitments. However, horizontal GATS limitations in the schedules of specific commitments and reservations covering all sectors in Annex I and II of the Agreement, as well as 
MFN reservations or exemptions, are not included in the Tables. Mode 4 commitments are also WT/REG344/1 
 
- 24 - 
 
  excluded. The summaries of MFN and horizontal limitations in the text complement the summary 
Tables.  
4.3.1  Chile 4.28.  In its GATS schedule, Chile has made commitments in 42 out of 155 services sectors, 
essentially on mode 3, with some commitments  on modes 1 and 2 in telecommunications and 
tourism.  
4.29.  Chile's GATS MFN exemptions cover measures establishing dispute settlement procedures in 
bilateral treaties on the protection of investment; reciprocal measures on maritime transport - in 
particular freight; national treatment for suppliers  from signatories of the 1977 International Land 
Transport Convention
51; and national treatment for certain co-produced cinematographic works. 
Under the Agreement, Chile takes MFN reservations on existing measures related to certain 
communication and audiovisual services (telecommunication, press agencies, television and radio 
broadcasting), introducing reciprocity conditionalities. Moreover, MFN-related general reservations are registered for existing international treaties as well as future measures in the application of 
treaties granting preferential treatment on av iation, fishing and maritime services, including 
salvage. A general reservation is also registered fo r preferences granted to economically or socially 
disadvantaged minorities as well as to the origin al ethnic groups. Chile also has MFN reservations 
for certain communication services, education, fishing related services, social services, 
environmental services; and cultural industries (lin ked to products, publishing and distribution of 
books; periodicals; movies; videos; music; as well as activities related to radio, television, cable, and satellite transmissions). Some of these reservations also cover national treatment and/or local 
presence.  
4.30.  Under the GATS, Chile's horizontal limitations cover mode 3 (with other modes not being 
covered in most cases) with limitations on the form and modalities applicable to commercial 
presence and foreign investment, including on the repatriation of capital by foreign companies 
established in Chile. An economic needs test is applicable and residency required for foreign managers. Specialists are also subject to residency requirements. Chile has national treatment 
limitations in its GATS specific commitments for land ownership in border zones. Under the 
Agreement, Chile has some horizontal limitations, covering national treatment and/or local presence in addition to some of the above-mentioned MFN reservations. In particular, a general reservation, applicable for all sectors, requires that at least 85% of the staff of companies 
established in Chile and employing over 25 persons are Chilean
52 (the competent authorities may 
however determine that 85% does not apply for certain technicians). Horizontal reservations related to the adoption of existing and/or future measures establishing rights or preferences to 
original ethnic groups, and the protection of minority groups are also made for national treatment 
and local presence . 
4.3.1.1  Chile's sector specific commitments on trade in services 
4.31.  The following section identifies some of the main differences, by sector, between Chile's 
GATS schedule and its sector-specific commitments und er the Agreement. It should also be read in 
conjunction with the Chile's lists of non-conforming measures contained in Annexes I, II and III of the Agreement. 
Table 4.1 Chile: comparison between the GATS  and Agreement specific commitments in 
trade in services
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s)  
for future 
measures 
1. Business services     
A. Professional Services Partial Similar  (*)  
B. Computer and Related Services  --- New   
C. Research and Development Services  --- Improved   
D. Real Estate Services  --- New   
                                               
51 Argentina, Bolivia, Brazil, Paraguay, Peru, and Uruguay. 
52 A similar reservation may also be applicable to local presence. WT/REG344/1 
 
- 25 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s)  
for future 
measures 
E. Rental/Leasing Serv ices without Operators  Partial New   
F. Other Business Servic es Partial Improved  (*)  
2. Communication services      
A. Postal services --- New (*)  
B. Courier services --- New (*)  
C. Telecommunication services  Partial Similar (*)  
D. Audiovisual services --- New   
3. Construction and related engineering 
services      
A. General construction work for buildings --- New   
B. General construction work for civil 
Engineering --- New   
C. Installation and assembly work  --- New   
D. Building completion and finishing work  --- New   
E. Other --- New   
4. Distribution services     
A. Commission ag ents' services --- New   
B. Wholesale trade services --- New   
C. Retailing services --- New   
D. Franchising --- New   
5. Education services     
A. Primary education services --- New   
B. Secondary education services  --- New   
C. Higher education services  --- New   
D. Adult education --- New   
E. Other education services  --- New   
6. Environmental services     
A. Sewage services --- New   
B. Refuse disposal services --- New   
C. Sanitation and similar services  --- New   
D. Other --- New (*)  
7. Financial services     
A. All insurance and insurance-
related services  Partial Improved   
B. Banking and other financial services Partial Improved   
8. Health related and social services     
A. Hospital services --- New   
B. Other Human Health Services --- New   
C. Social Services --- New   
D. Other --- New   
9. Tourism and travel related services     
A. Hotels and restaurants (including catering)  Partial Improved   
B. Travel agencies and tour operators 
services Partial Improved   
C. Tourist guides services Partial Improved   
10. Recreational and cultural and 
sporting services     
A. Entertainment services --- New   
B. News agency services --- New   
C. Libraries, archives, museums and other 
cultural services --- New   
D. Sporting and other recreational services  --- New   
11. Transport services      
A. Maritime Transport Services --- New   
B. Internal Waterways Transport --- New   
C. Air Transport Services Partial Improved (*)  
D. Space Transport  --- New   
E. Rail Transport Services --- New   
F. Road Transport Services --- New   
G. Pipeline Transport  --- New   
H. Services auxiliary to all modes of transport  --- New   
I. Other Transport Se rvices  --- New   
 
 WT/REG344/1 
 
- 26 - 
 
  Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in the 
Table.  
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs. GATS); though possibly, in specific individual cases, with 
limited improvements and/or li mited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments) : Reservation listed in Annexes I and/or II to the Agreement (existing or future non-conforming 
measures; services reservations). 
(*): Registered non-discriminatory quantitative restriction maintained in conformity with Article 11.09  Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W /CHL), prepared by the 
Secretariat (in 2003) and Chile's Schedules annexed to the Agreement.  
 
4.3.1.1.1  Business services 
4.32.  Chile expands its GATS Schedule by increasi ng its commitments to Nicaragua, although with 
a number of limitations for existing and future measures in: (i) some professional services, such as accounting and auditing, engineering services, inte grated engineering services, and legal services; 
(ii) some research and development services; and (iii) some other business services, such as 
printing and publishing, services incidental to fishing, and investigation and security. It also lists some market access (MA) restrictions in certain professional services and some services incidental 
to energy distribution. 
4.33.  In addition, Annex 11.13 to the Agreement establishes rules for the harmonization of 
measures regulating the recognition of qualifications by and the practice in the other Party.  
4.3.1.1.2  Communication services 
4.34.  Under the Agreement, postal services (unbound by Chile under the GATS) are covered, 
though Chile has market access restrictions. Telecommunication services (in which Chile has partial commitments in the GATS) are subject to reservations, including in market access. Courier 
services are fully liberalized, though a non-discriminatory market access restriction is registered. 
Chile's reservation in the Agreement with a view to maintaining its rights to take future measures on basic telecommunications does not always match its limitations in the GATS. Chile also has 
commitments in audiovisual services (not covered by Chile under the GATS), though it has certain 
limitations on existing and future measures.  
4.35.  Additionally, Chapter 13 of the Agreement contains rules and disciplines specific to 
telecommunications (see below). 
4.3.1.1.3  Construction and related engineering services 4.36.  Chile has no GATS commitments. Under the Agreement, the whole sector is covered 
although Chile lists a general reservation for possible future measures.  
4.3.1.1.4  Distribution services 
4.37.  Chile has not taken any commitments under the GATS. Under the Agreement, it covers the 
entire sector but with reservations for some existing measures related to the distribution of 
pyrotechnical equipment.  
4.3.1.1.5  Educational services 4.38.  The sector, which is not included by Chile in its GATS commitments, is covered under the 
Agreement, though there is a general reservation for possible future measures.  WT/REG344/1 
 
- 27 - 
 
  4.3.1.1.6  Environmental services 
4.39.  Chile has no commitments under the GATS, while under the Agreement it only registers an 
existing non-discriminatory quantitative restriction in connection with services related to nuclear energy that could be considered to be covered by Article XIV bis.  
4.3.1.1.7  Financial services 
4.40.  The financial services sector (bound by Chile under the GATS with some limitations) is 
included in the Agreement and not subject to any specific non-conforming measures.  
4.3.1.1.8  Health relate d and social services 
4.41.  Under the Agreement, this sector (for which there are no GATS commitments), is fully 
covered, without any reservation. 
4.3.1.1.9  Tourism and travel related services 
4.42.  Under the GATS, Chile has fully covered the sector, but only for mode 3. Under the 
Agreement, all modes are covered, without any reservation. 
4.3.1.1.10  Recreational, cult ural and sporting services 
4.43.  Under the Agreement, the whole sector (not committed under the GATS by Chile) is covered 
through the negative list approach, but Chile reserves existing measures for some entertainment services, news agency services, and spor ting and other recreational services.  
4.3.1.1.11  Transport services 
4.44.  Chile has commitments in certain services auxiliary to air transport under the GATS. Under 
the Agreement, the whole sector is covered, though only to a limited extent for air transport, while 
it remains debateable that the non-conforming measures registered are at all covered under the 
GATS. Chile lists existing non-conforming measures for maritime and internal waterways transport 
services with new measures that could also be introduced. Its GATS limitations are replicated under the Agreement. Existing non-conforming measures are also listed for some road transport 
services and for certain services auxiliary to all modes of transport.  
4.45.  Chapter 12 of the Agreement also contains certain disciplines specific to air transport 
services (see below). 
4.3.2  Nicaragua 
4.46.  In its GATS schedule, Nicaragua has made commitments in 49 out of 155 services sectors.  4.47.  One MFN exemption is registered by Nicaragua under the GATS in financial services, to 
cover financial and monetary integration and free movement of capital between the Central 
American countries in the context of the Ce ntral American integration Treaty. Under the 
Agreement, Nicaragua has MFN reservations on existing measures for artistic activities; some communication services requiring authorizations from TELCOR; domestic road transport; maritime 
transport activities; property of airplanes and exploitation of national air transport services; and 
professional services requiring licensing or certification of education and professional expertise, including for some legal services. Moreover, MFN-related general reservations are registered for 
existing international treaties as well as future measures in the application of treaties granting 
preferential treatment on aviation, fishing and ma ritime services, including salvage. There is a 
general reservation also for preferences granted in the context of international bilateral or multilateral treaties, relating to cultural matters. MFN reservations for future measures are also 
listed for preferences granted to Nicaraguan sm all and medium sized enterprises (SMEs) and to 
minority groups and original ethnic populations. Nicaragua also has MFN reservations for certain audiovisual services, as well as for services incide ntal to the distribution of energy and to mining. 
Some of these reservations also cover national treatment and/or local presence.  WT/REG344/1 
 
- 28 - 
 
  4.48.  Under the GATS, Nicaragua's horizontal market access limitations cover essentially mode 3 
with limitations related to an economic needs test, which must satisfy a number of criteria in Nicaragua's GATS list of specific commitments . Under the Agreement, Nicaragua records some 
horizontal limitations, covering national treatment and/or local presence in addition to some of the 
above-mentioned MFN reservations. In particular, a general reservation, for all sectors, requires of 
companies established in Nicaragua that at least 90% of their staff are Nicaraguan (the competent 
authorities may however determine a lower percentage in justified cases and for technical 
reasons). Horizontal reservations for future measures related to cultural matters; and the 
protection of SMEs and minorities or original ethnic groups, are also made for national treatment and local presence . 
4.3.2.1  Nicaragua's sector specific  commitments on trade in services 
4.49.  The following section identifies some of the main differences, by sector, between 
Nicaragua's GATS schedule and its sector-specifi c commitments under the Agreement. It should 
also be read in conjunction with the Nicaragua's lists of non-conforming measures in Annexes I, II 
and III of the Agreement. 
Table 4.2 Nicaragua: comparison betw een the GATS and Agreement specific 
commitments in trade in services
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s)  
for future 
measures 
1. Business services     
A. Professional Services --- New  (*)  
B. Computer and Related Services  Partial Improved   
C. Research and Development Services  Partial Improved   
D. Real Estate Services  --- New   
E. Rental/Leasing Serv ices without Operators  --- New   
F. Other Business Servic es Partial Improved   
2. Communication services      
A. Postal services --- New   
B. Courier services --- New (*)  
C. Telecommunication services  Partial Limited   
D. Audiovisual services Partial Limited   
3. Construction and related engineering 
services      
A. General construction work for buildings --- New   
B. General construction work for civil 
Engineering --- New    
C. Installation and assembly work  --- New   
D. Building completion and finishing work  --- New    
E. Other --- New   
4. Distribution services     
A. Commission ag ents' services --- New   
B. Wholesale trade services --- New    
C. Retailing services --- New   
D. Franchising --- New    
5. Education services     
A. Primary education services --- New    
B. Secondary education services  --- New   
C. Higher education services  --- New    
D. Adult education --- New   
E. Other education services  --- New    
6. Environmental services     
A. Sewage services --- New    
B. Refuse disposal services --- New   
C. Sanitation and similar services  --- New    
D. Other --- New   
7. Financial services     
A. All insurance and insurance-
related services  Partial Improved   
B. Banking and other financial services Partial Improved   WT/REG344/1 
 
- 29 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s)  
for future 
measures 
8. Health related and social services     
A. Hospital services --- New   
B. Other Human Health Services --- New   
C. Social Services --- New   
D. Other --- New   
9. Tourism and travel related services     
A. Hotels and restaurants (including catering)  Partial Improved   
B. Travel agencies and tour operators 
services Partial Improved   
C. Tourist guides services Full Limited   
10. Recreational and cultural and 
sporting services     
A. Entertainment services --- New   
B. News agency services --- New   
C. Libraries, archives, museums and other 
cultural services --- New   
D. Sporting and other recreational services  --- New   
11. Transport services      
A. Maritime Transport Services --- New   
B. Internal Waterways Transport --- New   
C. Air Transport Services Partial Improved  (*)  
D. Space Transport  --- New   
E. Rail Transport Services Partial Similar   
F. Road Transport Services --- New   
G. Pipeline Transport  --- New   
H. Services auxiliary to all modes of transport  --- New  (*)  
I. Other Transport Se rvices  --- New   
Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in the 
Table. 
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs. GATS); though possibly, in specific individual cases, with 
limited improvements and/or li mited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments) : Reservation listed in Annexes I and/or II to the Agreement (existing or future non-conforming 
measures; services reservations). 
(*): Registered non-discriminatory quantitative restriction maintained in conformity with Article 11.09. 
 Source:  Draft Consol idated GATS Schedule of Specific Commitments (S/DCS/W/NIC), prepared by the 
Secretariat (in 2003) and Nicaragua's Schedules annexed to the Agreement.  
 
4.3.2.1.1  Business services 
4.50.  Nicaragua expands on its GATS Schedule by  increasing the coverage of its commitments. A 
number of limitations for existing measures as well as reservations for possible future measures 
are maintained in: (i) some professional services, such as accounting and auditing, legal services, 
and advertisement services; (ii) some research services; and (iii) some other business services, such as services incidental to fishing and mining, as well as investigation and security. It also lists 
some market access restrictions for mapping services. 
4.51.  Annex 11.13 to the Agreement establishes rules for the harmonization of measures 
regulating the recognition of qualifications by and the practice in the other Party.  
 WT/REG344/1 
 
- 30 - 
 
  4.3.2.1.2  Communication services 
4.52.  Under the Agreement, postal and courier services (unbound by Nicaragua under the GATS) 
are covered, though Nicaragua, like Chile, registers market access restrictions. Telecommunication services and, to a certain extent, audiovisual services (partly committed by Nicaragua under 
GATS) are subject to reservations, including in market access.  
4.53.  Chapter 13 of the Agreement contains rules and disciplines specific to telecommunications 
(see below). 
4.3.2.1.3  Construction and related engineering services 
4.54.  No commitments are made by Nicaragua under the GATS, while, under the Agreement, the 
whole sector is covered although with a general reservation for possible future measures.  
4.3.2.1.4  Distribution services 
4.55.  Nicaragua has no commitments under the GATS. Under the Agreement, it however covers 
the entire sector through with reservations for some existing measures related to the distribution of alcoholic beverages, pyrotechnic material and ammunition, as well as electrical energy. It is 
nevertheless arguable that a number of the activiti es covered by some of Nicaraguan reservations 
are actually out of the scope of the GATS coverage. 
4.3.2.1.5  Educational services 
4.56.  This sector, which is not included by Nicaragua in its GATS commitments, is covered under 
the Agreement, without any limitation.  
4.3.2.1.6  Environmental services 4.57.  Environmental services, which are not included by Nicaragua in its GATS commitments, are 
covered under the Agreement, without any limitation.  
4.3.2.1.7  Financial services 4.58.  As in the case of Chile, the financial services sector (partially bound by Nicaragua under the 
GATS) is fully covered by the Agreement with no specific non-conforming measure.  
4.3.2.1.8  Health relate d and social services 
4.59.  This sector, which is not included in Nicaragua's GATS commitments, is covered under the 
Agreement, without any limitation.  
4.3.2.1.9  Tourism and travel related services 4.60.  Under the GATS, Nicaragua has partly covered the sector, with some limitations for hotels 
and restaurants, as well as for travel agencies and tour operators services. Under the Agreement, 
while the whole sector is covered, there are exis ting non-conforming measures, as well as for 
tourist guides services (a subsector which was fully covered without reservations under the GATS). 
4.3.2.1.10  Recreational, cult ural and sporting services 
4.61.  Under the Agreement, the whole sector (for which Nicaragua has no GATS commitments) is 
covered through the negative list approach, but Nicaragua reserves existing measures for some 
entertainment services.  
4.3.2.1.11  Transport services 
4.62.  Nicaragua has partial commitments under th e GATS for some air transport and some rail 
transport services. Under the Agreement, Nicaragua covers the whole sector but has existing non-WT/REG344/1 
 
- 31 - 
 
  conforming measures for maritime transport services and internal waterways transport; for air 
transport services, including some non-discriminatory quantitative restrictions as well as possible future measures; for rail and road transport services; and for some services auxiliary to all modes of transport, including some non-discriminatory quantitative restrictions.  
4.63.  In addition, Chapter 12 of the Agreement has certain disciplines for air transport services 
(see below). 
4.4  Sector specific provisions in trade in services 
4.64.  In addition to the provisions contained in Chapter 11 of the Agreement on cross-border 
trade in services, the Agreement establishes specific disciplines for air transport services (Chapter 12) and for telecommunication services (Chapter 13). 
4.4.1  Air Transport 
4.65.  Chapter 12 of the Agreement contains rules an d disciplines specific to air transport services. 
Accordingly, bilateral agreements on air transport concluded bilaterally between Chile and a Central American State are incorporated into and shall form part of the Agreement. In case of 
conflict between the bilateral agreement and the Agreement, the Agreement shall prevail. 
Moreover, disputes related to air-transport matters, including in relation with provisions contained in bilateral agreements, shall be settled according to the dispute settlement mechanism 
established under Chapter 19 of the Agreement. 
4.66.  A Committee on Air Transport is establishe d to monitor the implementation of Chapter 12.  
4.4.2  Telecommunication services  4.67.  Chapter 13 of the Agreement contains disciplines applicable to (i) measures adopted or 
maintained by a Party relating to the provision of public telecommunications; (ii) measures 
adopted or maintained by a Party relating to access to and use of networks or public telecommunications services by persons of anot her Party, including access and use by such 
persons operating private networks to carry out their internal communications business; 
(iii) measures adopted or maintained by a Party for the provision of value added services by persons of another Party in the territory or across its borders; and (iv) measures on 
standardization regarding the attachment of terminal or other equipment to public 
telecommunications networks.  
4.68.  Chapter 13 covers topics such as acce ss and use of public telecommunications transport 
networks and services (Article 13.04), conditions for the provision of value added or improved 
services (Article 13.05), measures related to standardization
53 (Article 13.06), monopolies and 
anti-competitive practices (Article 13.07), transpar ency (Article 13.08), relation to international 
organizations (Article 13.10), as well as technical cooperation and consultations (Article 13.11). 
The disciplines of Chapter 13 replicate some of the WTO rules contained in the Annex on 
telecommunications, and adapt to the telecommunications sector some of the disciplines on domestic regulations, on monopolies and exclus ive service suppliers, and on business practices 
contained in the GATS. In the event of any inco nsistency between Chapter 13 and other chapters 
of the Agreement, Chapter 13 shall prevail to the extent of the inconsistency.  
4.5  Regulatory provisions  4.5.1  Domestic regulation 
4.69.  The Agreement does not have specific di sciplines on domestic regulations, as such. 
However, certain telecommunications provisions relate to domestic regulations. 
 
                                               
53 Chile's and Nicaragua's existing conformity assessment procedures ar e listed in Annex 13.02 of the 
Agreement. WT/REG344/1 
 
- 32 - 
 
  4.5.2  Recognition 
4.70.  Annex 11.13, applicable specifically to pr ofessional services, contains provisions on the 
recognition of qualifications. Where a Party recognizes, autonomously or by agreement or arrangement, the qualification obtained in the territory of a non-party that Party is not required to 
accord such recognition to the qualification obtained in the territory of the other Party. A Party 
shall however afford the other Party adequate opportunity to demonstrate that qualification obtained in that other Party’s territory should also be recognized, or to negotiate or enter into an 
agreement or arrangement of comparable effect. Annex 11.13 also establishes the basis for the 
recognition of qualifications and authorization to practice. Besides these, the Agreement does not contain any specific disciplines on recognition. 
4.5.3  Subsidies 
4.71.  The Agreement does not contain any specific disciplines on subsidies in trade in services. 
4.5.4  Transparency 4.72.  In addition to the general provisions in Chapter 17, the Parties shall establish procedures to 
ensure the notification of changes to non-conforming measures listed in Annexes I and II, the 
future quantitative restrictions to market access to be listed in Annex III, as well as the commitments to liberalize quantitative restrictions, licensing requirements, and other 
non-discriminatory measures, as well as consultations on reservations, quantitative restrictions or 
commitments, aimed at achieving further liberalization (Article 11.12). While the Parties have not yet been in a position to establish the envisage d notification of changes, they indicate that 
changes referred to in Article 11.12 have not occurred to date. 
4.5.5  Safeguards 
4.73.  The Agreement does not have specific disciplines on safeguards in trade in services. 4.5.6  Other 
4.5.6.1  Investment 
4.74.  Chapter 10 covers investment. It states that the Agreement between Chile and Nicaragua 
for the promotion and reciprocal protection of investments signed on 8 November 1996 
(hereinafter referred to as the Investment Agreement
54) constitutes an integral part of the 
Agreement. However, in case of conflict betw een the Agreement and the Investment Agreement, 
the Agreement shall prevail except for matters related to initial provisions (Chapter 1), administration of the Agreement (Chapter 18) , dispute settlement (Chapter 19), and final 
provisions (Chapter 21). The Investment Agreement states, inter alia , that "if a Party grants 
special advantages to investors of any third party under an agreement establishing a free trade area, a customs union, a common market, an economic union or any other form of regional 
economic organization, or under an agreement partly or wholly related to taxation, a Party shall 
not be obliged to accord such advantages to the investors of the other Party" (Article 4 of the Investment Agreement). 
4.75.  Within two years from the entry into forc e of the Agreement, the Parties shall examine the 
possibility to develop and expend the rules and disciplines in the Investment Agreement, which would then become part of the Agreement (Article 10.02). It shall be reminded that the deepening 
of relationships in the area of investment betw een Chile and Nicaragua is, under the Agreement, 
envisaged in the overall framework of the br oader context of the Chile – Central America 
framework. To date, despite the submission of proposals on several occasions, a consensus has not been reached on that matter. 
                                               
54 The Investment Agreement contains provisions on  the following matters: promotion, admission and 
protection of investments; treatment of investme nts; free transfer; expropriation and compensation; 
subrogation; dispute settlement between the Parties and an investor of the other Party; dispute settlement between the Parties; and consultations. WT/REG344/1 
 
- 33 - 
 
  4.76.  The Agreement establishes a Committee on investment and cross-border services. 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 5.1.  Chapter 17 of the Agreement refers to  transparency. The provisions include: the 
establishment by each Party of an information centre (Article 17.02); the publication of laws, 
regulations, and procedures and administrative rulings of general application relating to matters covered by the Agreement (Article 17.03); notification and provision of information to the other 
Party (Article 17.04); due process obligations regarding administrative proceedings 
(Article 17.05); administrative procedures for the adoption of measures of general application (Article 17.06), and review and appeals (Article 17.07). The Agreement also contains provisions 
protecting confidentiality (Articles 5.07, 6.04, and 20.05). 
5.2.  All notification obligations in the Agreement shall be met through the national sections of the 
Secretariat of the Free Trade Commission (see below). Communications related to dispute settlement shall also be copied for information to the Secretariat of the Central American Economic 
Integration (SIECA). 
5.3.  Moreover, provisions in the Agreement dealing specifically with customs procedures 
(Chapter 5), safeguards (Chapter 6), SPS measures (Chapter 8), standards and metrology 
(Chapter 9), cross border trade in services, including telecommunications, and temporary 
movement of persons (Chapters 11, 13, and 14), and government procurement (Chapter 16) also contain transparency obligations. 
5.2  Current payments and capital movements 
5.4.  The Agreement does not contain any spec ific disciplines on transfers and payments. 
5.3  Exceptions 5.5.  Chapter 20 of the Agreement states the exceptions applicable when measures are taken in 
relation to the Agreement. The Agreement incorporates, through Article 20.02, the Parties' rights 
and obligations in respect of general exceptions which are governed by Article XX of the GATT 1994 for trade in goods; technical barriers to trade, including SPS measures; competition 
policies; and government procurement. Moreover, prior to adopting a measure that would comply 
with obligations under an intergovernmental commo dity agreement, of the kind referred to in 
paragraph h) of Article XX of GATT 1994, a Party shal l consult the other Party to avoid nullification 
or impairment of a tariff concession granted in  the context of the tariff elimination programme 
(Article 3.15). 
5.6.  The Agreement also incorporates the Parties' rights and obligations in Article XIV of the GATS 
for trade in services (in particular Chapters 11 to 14 of the Agreement); including services-related 
aspects covered under Parts II and III of the Agre ement, covering essentially trade in goods as 
well as technical barriers to trade. Article XIV of GATS also applies to services-related aspects of Chapters 15 and 16 (competition policies and government procurement). 
5.7.  Through the incorporation, in Article 20.03, of a text similar to that of Articles XXI of the 
GATT 1994 and XIVbis of the GATS, the Agreement al so reserves the application by the Parties of 
measures related to national security.  
5.8.  According to Article 20.06, measures related to taxation are excluded from the coverage of 
the Agreement, except when taxation-related me asures may conflict with the commitment made 
in the Agreement by the Parties on national treatment (Article 3.03) in the same manner as foreseen in Article III of GATT 1994, and on expo rt duties in the context of the programme of 
liberalization (Article 3.14). The Parties commit to conclude, within a reasonable time, a bilateral 
treaty to avoid double taxation (Annex 20.06) pending which time such tax avoidance will be 
regulated through an exchange of letters. A double taxation treaty has not to date been negotiated 
between the Parties. WT/REG344/1 
 
- 34 - 
 
  5.4  Accession and Withdrawal 
5.9.  There are no specific provisions on third party accession to the Agreement. However, the 
Agreement is part of the Treaty on Free Trade between Chile and Central America which includes 
six parties.  
5.10.  The disciplines governing termination in Article 21.05 foresee that the Agreement will cease 
to exist within 180 days of a Party notifying its in tention to denounce the Agreement. In case Chile 
denounces the Agreement, the Treaty shall cease to exist between the other Parties also. 
5.5  Government procurement 
5.11.  Government procurement is covered by Chapter 16 of the Agreement, which applies to 
goods and cross-border services.55 The Government entities listed in Annex 16.01 to the 
Agreement are however excluded from its coverage. Also excluded are Government procurement 
related to (i) defence and of other strategic nature or national security; (ii) recruitment of 
personnel aimed at fulfilling the functions of the entities; and (iii) projects funded by States, multilateral or regional institutions or individuals that impose conditions inconsistent with the 
provisions of the Chapter (Annex 16.02). Chapter 16 does not apply either to (i) service-related 
subsidies; (ii) governmental services or functions
56; and (iii) cross-border financial services. 
5.12.  According to the Protocol of 2011, within six months from signing the Protocol, the Parties 
had to engage in consultations in order to implement Chapter 16. They also had to agree on the 
list of Nicaraguan entities excluded from the co v e r a g e  o f  C h a p t e r  1 6  a n d  t o  b e  i n c l u d e d  i n t o  
Annex 16.01. This Annex was to become an integral  part of the bilateral protocol. While lists of 
entities have been proposed, discussions are still under way and have not, to date, been 
concluded. 
5.13.  For government procurement that is included in Chapter 16, the Parties commit that the 
goods and services providers of the other Party shall participate on an equal footing in public 
procurement, that the principles of national treatment and non-discrimination will apply 
(Article 16.04), that transparency shall be guaran teed (Article 16.05), and that mechanisms of 
co-operation and technical assistance shall be developed (Article 16.13). 
5.14.  Modifications to the coverage of Chapter 16 may be requested by a Party, in particular to 
examine the possibility to incorporate entities list ed in Annex 16.01. Consultations shall take place 
between the Parties to determine if and how such coverage may be expanded (Article 16.09).  
5.15.  Denial of benefits may take place for a service provider of a Party controlled by persons of a 
non-party or not having substantial business activities in the Area of the other Party 
(Article 16.07).  
5.16.  The Agreement defines standards and modalities applicable to matters such as technical 
specifications (Article 16.06), procedures to challenge decisions (Article 16.08), privatization 
(Article 16.10), and the use of information technology (Article 16.11).  
5.17.  A Committee on Government Procurement is established for the monitoring and effective 
implementation and operation of Chapter 9 (Article 16.11). 
5.6  Intellectual property rights 5.18.  The Agreement does not contain a specific section on intellectual property rights, per se . 
5.19.  However, geographical indications (GIs) of  goods from one Party shall be recognized and 
protected by the other Party in conformity with the provisions of Article 3.12 of the Agreement
57, 
                                               
55 For services, subject to the reservations contained in Annexes I and II of the Agreement (containing 
the lists of non-conforming measures). 
56 Such as: execution of the laws, correctional servic es, pension or unemployment insurance or social 
security services, social welfare, public education, public training, health and child care and child protection. 
57 Article 3.12 forms part of Chapter 3 covering nati onal treatment and market access (trade in goods). WT/REG344/1 
 
- 35 - 
 
  and of Article 22, paragraph 1, of the TRIPS Agr eement. In order to be granted protection, GIs 
shall be notified to the other Party. The Parties may however authorize homonymous GIs and origin designations, which may rightfully belong to a third party.  
5.20.  Annex 3.12, attached to the Protocol of 2011, confirms both Parties' understanding on 
Article 3.12 of the Agreement. Within a period of  three years, from the entry into force of the 
Agreement, Nicaragua will recognize the GI for "C hilean Pisco". Past this transitional period, 
Nicaragua will prohibit de sale of any product as "Chilean Pisco", unless it has been produced in 
Chile in accordance with the laws and regulations governing its production. The foregoing is 
without prejudice to the notification which Chile makes in accordance with the second paragraph of Article 3.12 of the Agreement, and the rights that  Nicaragua might have to also recognize "Pisco" 
produced in Peru
58. The Parties agree to establish mechanisms for effective commercial 
cooperation for the development of GIs in Nicaragua. 
5.7  Other 5.7.1  Competition 
5.21.  Chapter 15 of the Agreement contains specific provisions with regard to competition 
policies, monopolies and State enterprises.  
5.22.  The Parties shall ensure that the benefits of the Agreement are not undermined by 
anticompetitive business practices. Similarly, they  shall endeavour to move towards the adoption 
of common measures to avoid them, and seek to establish mechanisms to facilitate and promote the development of competition policies and en sure implementation of regulations on free 
competition, in order to avoid negative effects of anti-competitive business practices in the Free 
Trade Area. 
5.23.  Nothing in the Agreement prevents the Part ies from maintaining or establishing monopolies 
or State enterprises. The Parties shall nevertheless ensure that such monopolies or enterprises act 
in a manner compatible with the provisions of the Agreement, and ensure non-discriminatory 
treatment to investment and investors, goods,  and service providers from the other Party 
(Article 15.02). This provision does not apply in cases of acquisition of goods or services by 
government entities for their own use. 
5.8  Dispute settlement 5.24.  Chapter 19 sets out procedures and instit utional arrangements that apply to disputes 
between the Parties regarding questions of interpretation or application of the Agreement. The 
dispute settlement mechanism is also applicable in case an action by a Party is considered 
inconsistent with its obligations under the Agreement or in case of nullification or impairment of benefits accruing to a Party under the Agreement.
59 
5.25.  Article 19.04 provides for "forum shopping" as well as "forum exclusion" clauses for matters 
falling under the Agreement and the WTO Agreements. Accordingly, a Party shall be considered to have selected a forum when it has requested the establishment of a panel established either under 
the WTO or under the Agreement. 
5.26.  Chapter 19 provides for detailed steps in the process for dispute resolution, the salient 
features of which are described in Chart 5.1 below. If the Parties fail to resolve a dispute through consultations, they may refer the case to the Free Trade Commission with a view to finding a 
mutually satisfactory solution.
60 The Commission may call upon technical experts, establish groups 
of experts, solicit good offices, conciliation or me diation by other persons or groups of persons, or 
formulate recommendations (Article 19.07). Subsequently, the case may be referred, upon 
                                               
58 This protection is granted in accordance with the provisi ons of Article 59 of Decree 25-2012, which amends and adds 
to Decree No. 83.2001 entitled "Regulation of the Law of Trademar ks and Other Distinctive Signs," which sets out the minimum 
requirements that an application must fulfill to be recognized and protected in Nicaragua.  
59 Annex 19.03 clarifies the coverage of the Agreement for which a Party may initiate a nullification or 
impairment case. 
60 The Commission may also, when requested, provid e for an interpretation of the Agreement, which 
may be used before national judicial an d administrative instances (Article 19.19). WT/REG344/1 
 
- 36 - 
 
  request by a Party, to a Panel composed of thr ee independent arbitrators chosen by the Parties 
among a list to be established by consensus by the Parties (Article 19.09). The Panel may decide to request scientific information and technical ad vice from experts, as necessary (Article 19.14). 
Majority voting and publication of dissenting opinions are foreseen in cases the Tribunal may not 
decide by consensus. 
5.27.  An Interim report (Article 19.15) shall be issued to the Parties, in principle within 90 days, 
followed by a final ruling within 30 days. The fina l report (Article 19.16), which is binding on the 
Parties, shall be made public within 15 days after it has been transmitted to them. 
5.28.  Unless the Parties agree otherwise, the arbitration ruling shall be complied within 
six months at the most. Where there is a disagreement between the Parties on the consistency of the compliance measures with the ruling the original Panel shall rule about the compliance or lack 
of.  
5.29.  In case of non-compliance, the complaining Party is entitled to temporarily suspend 
concessions either in the same sector as the one affected, or, if this is not feasible, in a different 
sector. If the Party complained against considers that the level of suspension is not equivalent to 
the nullification or impairment caused by the violation, it may request the original Panel to rule on the matter. A review of measures taken to comply after the suspension of obligations is conducted, 
by the original Panel, upon request by the Party complained against when it considers that it has 
brought its measures into conformity and that the suspension of obligations must be terminated.  
5.30.  Neither Party may, in its national legislation, authorize a private party to take a legal action 
alleging that a measure taken by the other Party is incompatible with the Agreement 
(Article 19.20). 
Chart 5.1 Specific Dispute Settlement Mechanism established by the Treaty on Free 
Trade between Chile and Central America 
 
 
5.31.  In relation to international commercial disputes between private parties within the Free 
Trade Area, the Parties shall promote and facilitate arbitration through alternative means 
(Article 19.21). They will also ensure the avai lability of appropriate procedures to ensure 
observance of international arbitration conventions they have ratified, as well as the recognition 
and enforcement of arbitral awards in such disputes. The Commission may also establish an 
Advisory Committee on Private Commercial Disputes. Request for consultations and 
consultations (Art. 19.06) 
Request for the establishment  
of a Panel (Art. 19.08) 
Proceedings (Art. 19.12)  
Issuance of Final Report of 
the Panel (Art. 19.16) Preliminary Report to the Parties 
(Art. 19.15) 
Implementation 
Suspension of 
benefits  
(Art. 19.18 ) Determination of compliance 
by the Panel (Art. 19.18) Non-Implementation  WT/REG344/1 
 
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  5.9  Institutional framework 
5.32.  Chapter 18 of the Agreement covers instit utional arrangements and establishes Free Trade 
Commission61 to ensure the proper operation of  the Agreement and to supervise its 
implementation and application (Article 18.01). It  also supervises the work of all the Committees 
established by the Agreement. To assist the Commission in its technical work, the Agreement 
establishes a Free Trade Sub-Commission (Article 18.02). A Secretariat, organized in national sections, is also established to assist the Commission and the Sub-Commission, to administratively 
support the Panels established in conformity with the Agreement-specific dispute settlement 
mechanism, and to carry out the circulation of the Parties' communications and notifications (Article 18.03).  
5.33.  A Committee on trade in goods is established by Article 3.16 to, inter alia , consider matters 
related to the implementation of Chapters 3 (National Treatment and Market Access), 4 (Rules of 
origin), and 5 (Customs Procedures) of th e Agreement. The Committee may also examine 
adjustments related to the Parties' Tariff concessions, as required, including the possible 
acceleration of the tariff elimination programme. 
5.34.  The establishment of Committees, Sub-Committees, and Groups of Experts is also foreseen 
by Chapter 18.  
5.35.  The institutional framework established und er the Agreement is summarized in Chart 5.2. 
Chart 5.2 Institutional Framework establis hed by the Treaty on Free Trade between 
Chile and Central America 
 
 
                  
 
 
  
 
   
 
5.10  Relationship with other agreements concluded by the Parties 
5.36.  The Parties confirm the rights and obligations between them in conformity with the WTO 
Agreement, as well as other international agreements they are party to. In case of conflict 
between the Agreement and the other agreements, th e provisions of the Agreement prevail to the 
extent of the conflict (Article 1.04, paragraph 2) . However, the Convention on International Trade 
in Endangered Species of Wild Fauna and Flor a (CITES) of 1973, the Montreal Protocol on 
                                               
61 Annexes 18.01(1) and 18.02 identify the Parties' representatives in the Free Trade Commission and in 
the Free Trade Sub-Commission.  Free Trade Commission i 
(Art. 18.01) 
i  Possibility to create other Committees. 
* Possibility to establish Sub-committees as  well as ad hoc Groups of Experts. 
 
Source: WTO Secretariat based on the Agreement. Panel(s) (Art. 19.11) 
Committee on Trade in Goods (Article 3.16 )* 
Committee on SPS measures (Article 8.11 )* 
Committee on Standardization, Metrology and 
Authorization Procedures (Article 9.12) * 
Committee on Air Transport (Article 12.04) * 
Committee on Government Procurement  
(Article 16.13) * National Sections 
 
- Chile 
- Costa Rica 
- El Salvador 
- Guatemala - Honduras 
- Nicaragua Free Trade Sub-Commission 
(Art. 18.02) 
Secretariat (Art. 18.03) 
Committee on Investment and Cross-border 
Services (Article 11.14 )* WT/REG344/1 
 
- 38 - 
 
  Substances that Deplete the Ozone Layer of 1990 , and the Basel Convention on the Control of 
Trans boundary Movements of Hazardous Wastes and Their Disposal of 1989 prevail over the 
Agreement in case of conflict with it (Article 1.04). 
5.37.  The Parties' regional trade agreements in force (both notified and non-notified) are listed in 
Table 5.1.  
Table 5.1 Chile and Nicaragua: Participation in  other regional trade agreements (notified 
and non-notified, in force), as of 12 June 2014  
RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
CHILE 
Chile - Malaysia 25-Feb-12 Goods 2013 GATT Art. XXIV 
Turkey - Chile 01-Mar-11 Goods 2011 GATT Art. XXIV 
Chile - Guatemala (Chile - Central 
America) 23-Mar-10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Chile - Colombia 08-May-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Australia - Chile 06-Mar-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Peru - Chile 01-Mar-09 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Chile - Honduras (Chile - Central 
America) 19-Jul-08 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Panama - Chile 07-Mar-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Chile - Japan 03-Sep-07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Chile - India 17-Aug-07 G oods 2009 Enabling Clause 
Chile - China 01-Oct-06 
01-Aug-10 Goods 
Services 2007 
2010  GATT Art. XXIV & GATS Art. V 
Trans-Pacific Strategic Economic 
Partnership 08-Nov-06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
EFTA - Chile 01-Dec-04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea - Chile 01-Apr-04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States - Chile 01-Jan-04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
European Union - Chile 01-Feb-03  
01-Mar-05 Goods 
Services 2004 
2005 GATT Art. XXIV & GATS Art. V 
Chile - El Salvador (Chile - Central 
America) 01-Jun-02 Goods 
Services 2004 
2004 GATT Art. XXIV & GATS Art. V 
Chile - Costa Rica (Chile - Central 
America) 14-Feb-02a Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Chile - Mexico 01-Aug-99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada - Chile 05-Jul-97 Goods & Services 1997 GATT Art. XXIV & GATS Art. V 
Global System of Trade Preferences 
among Developing Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Latin American Integration Association 
(LAIA) 18-Mar-81 Goods 1982 Enabling Clause 
Protocol on Trade Negotiations (PTN) 11-Feb-73 Goods 1971 Enabling Clause 
Chile - Viet Nam 01-Feb-14 Goods & Services Not notifiedb 
LAIA - Accession of Panama 03-May-12 Goods Not notifiedb 
Chile - Ecuador [LAIA, AAP.CE N°65] 25-Jan-10 Goods & Services Not notifiedb 
Cuba - Chile [LAIA,AAP.CE N°42] 27-Jun-08 Goods Not notifiedb 
LAIA - Cultural Goods [LAIA AR.CEYC 
N°7] 28-Jul-01 Goods Not notifiedb 
MERCOSUR - Chile [LAIA, AAP.CE N°35] 01-Oct-96 Goods & Services Not notifiedb 
LAIA - Seeds [AAP.AG N°2] 07-Jun-93 Goods Not notifiedb WT/REG344/1 
 
- 39 - 
 
  RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
Chile - Bolivia [LAIA, AAP.CE N°22] 06-Apr-93 Goods Not notifiedb 
Chile - Venezuela [LAIA, AAP.CE N°23] 02-Apr-93 Goods & Services Not notifiedb 
Chile - Argentina [LAIA, AAP.CE N°16] 02-Aug-91 Goods Not notifiedb 
LAIA - Preferences in favor of Bolivia 
[LAIA, AR.AM N°1] 27-Jan-84 Goods Not notifiedb 
LAIA - Preferences in favor of Ecuador 
[LAIA, AR.AM N°2] 27-Jan-84 Goods Not notifiedb 
LAIA- Preferences in favor of Paraguay 
[LAIA, AR.AM N°3] 27-Jan-84 Goods Not notifiedb 
NICARAGUA 
European Union - Central Americac 01-Aug-13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Mexico - Central America 01-Sep-12 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
Panama - Nicaragua (Panama - Central 
America) 21-Nov-09 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Nicaragua - Chinese Taipei 01-Jan-08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America - 
United States Free Trade Agreement 
(CAFTA-DR) 01-Apr-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Dominican Republic - Central America 03-Sep-02 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Global System of Trade Preferences 
among Developing Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM - Accession of Panama 06-May-13 Goods Not notified 
Venezuela - Nicaragua [LAIA, 
AAP.A25TM N°25] 18-Jan-74 Goods Not notified 
Source: WTO Secretariat. 
 a
  Date communicated by Chile. It may be noted that the date of entry into force indicated in the notification to the WTO is 15-Feb-02 (WT/REG136/N/1). 
b
  Chile signals that is consulting with its RTA partners with a view to proceed to the notification of the RTAs for which the notification to  the WTO is currently pending. 
c
  The notifications made in February 2013 (see WT/REG 332/N/1 and S/C/N/680) states that: "Provisional 
application of the Agreement by all signatory parties is expected in the course of the second quarter 
2013"; Further notifications to confirm the specific date of entry into force between the EU and Nicaragua, and other Central Am erican countries are awaited. 
 WT/REG344/1 
 
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  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
The Chilean Market 
1. Annex Table A1.1 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs applied to Chile's imports from Nicaragua and its 
MFN rates at the entry into force of the Agreement. Chile's average applied MFN rate in 2012 was 6% overall (and for both agricultural products and non-agricultural products). MFN duty-free tariff 
lines accounted for 0.5% of all tariff lines. At the time of entry into force of the Agreement (2012), 
Nicaraguan exporters enjoyed an absolu te margin of preference of 5.9% vis-à-vis  the prevailing 
MFN tariff; 5.4% for agricultural goods and 6% for non-agricultural products. The share of duty free lines applicable to imports from Nicaragua wa s 98%. At the end of the implementation period 
in 2021, Nicaraguan exporters will face zero duti es on 99.5% of their exports to Chile (98% for 
agricultural products and 99.8% for non-agricultural products). 
Table A1.1 Chile: Indicators of MFN tariff ra tes and preferential rates for imports from 
Nicaragua 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 6.0 6.0 0.5  6.0 6.0 0.0 6.0 6.0 0.5  
Nicaragua 2012 0.1 5.1 97.5 0.6 5.0 87.6 0.0 5.2 99.1 
  2013 0.1 4.1 97.5  0.5 4.0 87.6 0.0 4.5 99.1  
  2015 0.1 2.3 97.5 0.2 1.9 87.6 0.0 2.9 99.1 
  2016 0.0 4.8 99.2  0.1 5.0 97.2 0.0 4.7 99.6  
  2017 0.0 4.5 99.2 0.1 4.7 97.2 0.0 4.4 99.6 
  2018 0.0 4.3 99.2  0.1 4.5 97.2 0.0 4.1 99.6  
  2019 0.0 4.1 99.2 0.1 4.3 97.2 0.0 3.8 99.6 
  2020 0.0 3.8 99.2  0.1 4.1 97.2 0.0 3.6 99.6  
  2021 0.0 6.0 99.5 0.1 6.0 98.0 0.0 6.0 99.8 
a WTO Definition. 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source: WTO estimates based on data provided by Chile.  
 
2. Annex Table A1.2 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Nicaragua's top global exports. During 2010-2012, Nicaragua's top 
25 exports accounted for 81.2% of its global exports; these corresponded to 87 lines at the eight-digit level. Before the entry into force of th e Agreement 2 of these tariff lines were duty free 
for Nicaraguan exporters into Chile's market. Howe ver, at the entry into force of the Agreement, 
in2012, 80 additional lines became duty free. At th e end of the implementation period for Chile (in 
2021), five tariff lines relating to cane sugar and some other sugar products, and some live bovine animals will remain dutiable. WT/REG344/1 
 
- 41 - 
 
  Table A1.2 – Chile: Market access opportuniti es under the agreement Nicaragua's top 25 
exports 
Nicaragua's top export products in 2010-2012 Access Conditions to Chile's 
import markets 
MFN (2012) 
Duty-free in 2012 
Remain dutiable HS code (6-digit) and description of the product Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of 
tariff 
lines Duty-free 
Dutiable 
090111 -- not decaffeinated 18.3  6.0   1 1    
020230 - boneless 12.4 6.0   1 1   
710812 -- other unwrought forms 12.3  6.0   1 1    
020130 - boneless 4.5 6.0   1 1   
170111 -- cane suga r 4.4  6.0   1   1 
120220 - shelled, whether or not broken 4.1 6.0   1 1   
030613 -- shrimps and prawns 3.1  6.0   9 9    
071333 -- kidney beans, including white pea beans (phaseolus vulgaris)  2.7 6.0   2 2   
040690 - other cheese 2.3  6.0   5 5    
030611 -- rock lobster and othe r sea crawfish (palinurus spp., panulirus 
spp., jasus spp.) 2.2 6.0   4 4   
040221 -- not containing added sugar or other sweetening matte r 2.1 6.0   9 9    
170199 -- othe r 1.6 6.0   3   3 
210111 -- extracts, essences and concentrates 1.2  6.0   2 2    
040630 - processed cheese, not grated or powdered  1.2 6.0   1 1   
010290 - othe r 1.1 6.0   1   1 
170310 - cane molasses 1.0 6.0   1 1   
220840 - rum and other spirits obtained by distilling fermented suga r-cane 
products 1.0 6.0   2 2    
040120 - of a fat content, by weight, exceeding 1% but not exceeding 6  % 0.9 6.0   1 1   
030269 -- othe r 0.8 6.0   27 27    
490700 Unused postage, revenue or similar stamps of current or new issue 
in the country in which they have, or will have, a recognised face 
value; stamp-impressed paper; banknotes; cheque forms; stock, 
share or bond certificates and similar documents of title. 0.8 2.0 2 1 1 
 
150810 - crude oil 0.8  6.0   1 1    
240210 - cigars, cheroots and cigarillos, containing tobacco  0.7 6.0   1 1   
080300 Bananas, including plantains, fresh or dried.  0.7 6.0   1 1    
040610 - fresh (unripened or uncured) cheese, including whey cheese, and 
curd 0.6 6.0   4 4   
190590 - othe r 0.6 6.0   4 4    
Total of above 81.2 5.9 2 85 80 5 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provid ed by Chile and UNSD, Comtrade database. 
 
The Nicaraguan Market 
3. Annex Table A1.3 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs applied to Nicaragua's imports from Chile and its 
MFN rates at the entry into force of the Agreement. Nicaragua's average applied MFN rate in 2012 
was 6.2% overall (11.7% for agricultural products and 5.2% for non-agricultural products). MFN duty-free tariff lines accounted for 46.4% of all tariff  lines. At the date of entry into force of the 
Agreement (2012), Chilean exporters enjoyed an  absolute margin of preference of 2.5% vis-à-vis  
the prevailing MFN tariff; 3.8% for agricultural goods and 2.3% for non-agricultural products. The 
share of duty free lines applicable to imports from Chile was 66.8%. After 10 years of implementation of the Agreement, in 2022, Chilean exporters will face zero duties on 96.1% of 
their exports to Nicaragua (82.9% for agricultural products and 98.5% for non-agricultural 
products). At the end of the implementation period , in 2026, Chilean exporters will face zero duties WT/REG344/1 
 
- 42 - 
 
  on 98.5% of their exports to Nicaragua (90.3% for agricultural products and 100% for non-
agricultural products). 
Table A1.3 Nicaragua: Indicators of MFN tari ff rates and preferential rates for imports 
from Chile 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 6.2 11.6 46.4 11.7  15.5 24.0 5.2 10.5 50.6  
Chile 2012 3.7 11.1 66.8 7.9 14.9 46.9 2.9 9.9 70.5 
 2013 3.1 9.4 66.8 6.9 13.1 46.9 2.4 8.1 70.5 
 2014 2.5 7.6 66.8 5.9 11.2 46.9 1.9 6.3 70.5 
 2015 1.9 5.8 66.8 5.0 9.3 46.9 1.4 4.6 70.5 
 2016 1.3 9.2 85.6 4.0 18.0 77.9 0.8 6.4 87.0 
 2017 1.2 8.1 85.6 3.8 17.3 77.9 0.7 5.2 87.0 
 2018 1.0 7.1 85.6 3.7 16.6 77.9 0.5 4.1 87.0 
 2019 0.9 6.0 85.6 3.5 15.9 77.9 0.4 2.9 87.0 
 2020 0.7 4.9 85.6 3.4 15.2 77.9 0.2 1.7 87.0 
 2021 0.6 14.2 96.1 3.2 18.7 82.9 0.1 4.5 98.5 
 2022 0.5 13.6 96.1 3.1 18.3 82.9 0.1 3.6 98.5 
 2023 0.5 13.0 96.1 3.1 17.8 82.9 0.0 2.7 98.5 
 2024 0.5 12.4 96.1 3.0 17.3 82.9 0.0 1.8 98.5 
 2025 0.5 11.8 96.1 2.9 16.9 82.9 0.0 0.9 98.5 
 2026 0.4 29.0 98.5 2.8 29.0 90.3 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations.  
 Based on the HS 2012 nomenclature. 
 
Source: WTO estimates based on data provided by Nicaragua and WTO-IDB. 
 
4. Annex Table A1.4 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Chile's top 25 global exports. During 2010-2012 Chile's top 
25 exports accounted for 75.5% of its global exports; these corresponded to 40 lines at the 
eight-digit level. Before the entry into force of the Agreement 19 of these tariff lines were already duty free for Chilean exporters (MFN rates). Moreover, at the entry into force of the Agreement, in 2012, 13 additional lines became duty free. 7 additi onal lines will become duty free in 2016 and, in 
2023 (three years before the end of the implementation  period for Nicaragua), one more tariff line 
will become duty free. At the end of the impl ementation period (in 2026), all the tariff lines 
corresponding to Chile's top 25 exports (2010-2012 figures) will be duty free.  
Table A1.4 – Nicaragua: Market access opport unities under the agreement for Chile's top 
25 exports 
Chile's top export products in 2010-2012 Access Conditions to Nicaragua's import 
markets 
MFN (2013) 
Duty free in  
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied rate  
(%) No. of tariff 
lines Duty-free  
Dutiable 
2012 
2016 
2023 
740311 -- cathodes and sections of cathodes 31.5  0.0 1         
260300 Copper ores and concentrates. 18.3 0.0 1         
740200 Unrefined copper; copper anodes for electrolytic 
refining. 3.6 0.0 1         
080610 - fresh 1.9 15.0 0 1 1     
220421 -- in containers holding 2 l or less 1.9  10.0 0 1 1     
470321 -- coniferous 1.7 0.0 1         
710812 -- other unwrought forms 1.6  5.0 0 1 1     WT/REG344/1 
 
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  Chile's top export products in 2010-2012 Access Conditions to Nicaragua's import 
markets 
MFN (2013) 
Duty free in  
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied rate  
(%) No. of tariff 
lines Duty-free  
Dutiable 
2012 
2016 
2023 
261310 - roasted 1.6 0.0 1         
470329 -- non-coniferous 1.5  0.0 1         
260111 -- non-agglomerated  1.1 0.0 1         
740400 Copper waste and scrap. 0.9  0.0 1         
740319 -- othe r 0.9 0.0 1         
030429 -- othe r 0.9  21.6 0 1 1     
080810 - apples 0.9 15.0 0 1 1     
271019 -- othe r 0.9  5.3 4 5 2 3    
440710 - coniferous 0.8 5.0 0 1   1   
230120 - flours, meals and pellets, of fish or of crustaceans, 
molluscs or other aquatic invertebrates 0.8 2.5 1 1 1     
280120 - iodine 0.7 0.0 1         
030319 -- othe r 0.7  10.0 0 1     1 
710691 -- unwrought 0.7 10.0 0 1 1     
271011 -- light oils and preparations 0.6  4.1 3 5 3 2    
740811 -- of which the maximum cross-sectional dimension 
exceeds 6 mm 0.6 0.0 1         
030321 -- trout (salmo trutta, oncorhynchus mykiss, 
oncorhynchus clarki, oncorhynchus aguabonita, 
oncorhynchus gilae, oncorhynchus apache and 
oncorhynchus chrysogaster) 0.6 15.0 0 1 1     
160590 - othe r 0.5 21.3 0 1   1   
030419 -- othe r 0.5  0.0 0         
Total of above 75.5 5.3 19 21 13 7 1 
Note: Based on the HS 2012 nomenclature. 
 Source: WTO estimates based on data provided by  Nicaragua, WTO-IDB Databa se and UNSD Comtrade. 
 
__________