WORLD TRADE  
ORGANIZATION   
WT/REG304/1  
31 August 2012 
 (12-4713) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
Peru and Chile 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the consideration of the Free Trade Agreement between Peru and Chile has been drawn up by th e 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 Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Jean-Daniel Rey (tel: +41 22 739 52 64).  WT/REG304/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
A.  OVERVIEW  1 
B.  MERCHANDISE TRADE  1  
C.  TRADE IN SERVICES AND INVESTMENT  3  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 4  
A.  BACKGROUND INFORMATION  4  
B.  STRUCTURE OF THE AGREEMENT  5  
III.  PROVISIONS ON TRADE IN GOODS 6  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  6  
1.  General provisions 6  
2.  Liberalization of trade and tariff lines 6  
3.  Liberalization schedule 7  
(a)  Chile 8  
(b)  Peru 9  
4.  Tariff rate quotas 11  
5.  Import restrictions 11  
B.  RULES OF ORIGIN  11  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  12  
D.  REGULATORY PROVISIONS ON TRADE IN GOODS  13  
1.  Standards 13  
(a)  Sanitary and Phytosanitary measures 13  
(b)  Technical barriers to trade 13  
2.  Safeguard mechanisms 14  
(a)  Global safeguards 14  
(b)  Bilateral safeguards 14  
(c)  Other 14  
3.  Anti-dumping and countervailing measures 15  
4.  Subsidies and State-aid 15  
5.  Customs-related procedures 15  
E.  SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  16  
IV.  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 16  
A.  SCOPE AND DEFINITIONS  16  
B.  DENIAL OF BENEFITS  17  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  17  
1.  Market access 17  
2.  National and MFN treatments 18  
3.  Local Presence 18  
4.  Temporary movement of business persons 19  
5.  Performance requirements 19  
6.  Senior managers and board of directors 20  
7.  Other provisions on investment 20  
D.  LIBERALIZATION OF TRADE IN SERVICES AND INVESTMENT  21  
1.  Chile's liberalization commitments 21  
2.  Peru's liberalization commitments 23  
3.  Sector specific commitments on trade in services 24  
 WT/REG304/1 
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  (a)  Business services 25  
(b)  Communication services 25  
(c)  Construction and related engineering services 25  
(d)  Distribution services 25  
(e)  Educational services 26  
(f)  Environmental services 26  
(g)  Financial services 26  
(h)  Health related and social services 26  
(i)  Tourism and travel related services 26  
(j)  Recreational, cultural and sporting services 26  
(k)  Transport services 26  
(l)  Other services not included elsewhere 27  
E.  REGULATORY PROVISIONS  27  
1.  Domestic regulation 27  
2.  Recognition 27  
3.  Subsidies 27  
4.  Transparency 28  
V.  GENERAL PROVISIONS OF THE AGREEMENT 28  
A.  TRANSPARENCY  28  
B.  EXCEPTIONS  28  
C.  ACCESSION AND TERMINATION  28  
D.  GOVERNMENT PROCUREMENT  29  
E.  INTELLECTUAL PROPERTY RIGHTS  29  
F.  OTHERS  29 
1.  Competition 29  
2.  Public pricing policies 30  
3.  Co-operation and Trade Promotion 30  
G.  INSTITUTIONAL FRAMEWORK  30  
H.  DISPUTE SETTLEMENT  30  
I.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  32  
ANNEX I 35 
 
 
   
 
    
 
   WT/REG304/1 
 Page 1 
 
 
   
Key Facts 
 
Parties to the Agreement:   Peru and Chile 
 
Date of Signature:   22 August 2006. 
 
Date of Entry into Force:   1 March 2009. 
 
Date of Notification:   29 November 2011. 
 
Full implementation:   1 July 2016. 
 
 
 
I. TRADE ENVIRONMENT 
A. OVERVIEW1 
1. The Free Trade Agreement (hereinafter referred to as the Agreement) between Peru and Chile 
is Peru's 14th and Chile's 22nd RTA.2   
2. In 2010, with a population of over 29 million, Peru's GDP was estima ted at US$154 billion 
while that of Chile, with a population of 17 millio n was estimated at US$203 billion.  Both export 
mainly mining products (61% of Peru 's total exports and 64% of Chile's3) and import essentially 
manufactured goods (72% of Peru's total imports and 60% of Chile's);  both Parties have a relatively 
similar trade (goods and services) to GDP ratio (49 and 42 for Peru and Chile respectively). 
B. MERCHANDISE TRADE  
3. In 2010, Peru's share in total world exports and imports was 0.23% and 0.20% respectively, 
while Chile's shares were 0.47% for exports and 0. 38% for imports.  With total merchandise exports 
of US$36 billion and imports of US$30 billion (both in progression after the sharp decline in 2009), 
Peru ranked 42nd in the world as exporter and 41st as importer compared to Chile's rankings at 27th for 
exports and 28th for imports (with global exports and im ports of US$71 billion and US$59 billion). 
4. In 2010, Peru was Chile's 10th largest source of imports and destination for export, accounting 
for respectively 2.4% of its total im ports and 2.3% of its total exports.4  For Peru, Chile represented 
3.5% of its total imports , making Chile Peru's 10th largest source of imports - while it was also Peru's 
7th largest destination for exports, accounti ng for 3.9% of Peru's total exports.5 
                                                      
1 Source for this section: WTO Trade Profiles 2011 (2010 data) Export figures are calculated f.o.b. and 
import figures are calculated c.i.f.  Ranking in world trad e excluding intra-EU trade.  For bilateral trade, the 
figures as reported by the Parties are used. 
2 Agreements in goods and services counted as one an d only agreements in force, notified to the WTO, 
counted. 
3 Gold is included in Peru's total exports but not in Chile's total exports. 
4 In 2010 the five top sources of imports for Ch ile were: China (17.6%), the US (17.5%), the EU27 
(13.7%), Argentina (8.4%), and Brazil (8.3%); the five to p export destinations from Chile were: China (24.6%); 
the EU27 (17.3%); Japan (10.8%); the US (10%); and Brazil (6.1%). 
5 In 2010, the five top sources of imports for Peru  were: the U.S. (19.5%), China (17.1%), the EU27 
(10.6%), Brazil (7.3%), and Ecuador (4.7%);  the five t op destinations of exports from Peru were:  the EU27 
(17.9%), the U.S. (16.5%), China (15.4%), Switzerland (10.9%), and Canada (9.5%). WT/REG304/1 
Page 2  
 
  5. Developments in global and intra-Party trade are presented in Charts I.1 and I.2.
6  Bilateral 
trade between Peru and Chile followed the pattern of  both Parties' trade with the world, 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 has recovered, although at a slower pace 
bilaterally than globally. Both Parties have run a gl obal trade surplus especially over the last 10 years.  
In their bilateral relations, Peru experienced a trade deficit until 2003.  Since then, its exports to Chile 
have exceeded imports.  
 
05101520
020406080100
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.1 - Chile: Merchandise trade with world and Peru, 1995-2010
Imports from Peru
Exports to PeruTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
05101520
0510152025303540
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.2 - Peru: Merchandise trade with world and Chile, 1995-2010
Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
6. The commodity structure of trade among the Par ties, as well as with the world in the period 
2008-2010, is shown in Chart I.3 on the basis of Ha rmonized System (HS) sect ions. Minerals, Peru's 
                                                      
6 The Charts are constructed on data extracted from UNSD, Comtrade database.  In Comtrade's 
explanatory notes, it is indicated that both Parties import values are declared as CIF while exports are declared 
as FOB. This may explain why the comparison between Charts I.1 and I.2 shows marginal discrepancies.  WT/REG304/1 
 Page 3 
 
 
  largest export (36.5% of its exports) accounted for more than 60% of Chile's imports from Peru and 
are also Chile's largest global import (25.6% of its merchandise imports).  Chile's second and third 
largest imports from Peru were chemicals and base metals (respectively 9% a nd 7.1% of its imports 
from Peru). Peru's imports from Chile were more di versified with chemicals,  minerals, and wood pulp 
the top 3 Peruvian imports from Chile (13.6%, 12. 6% and 10.9% of imports respectively). Peru's 
largest global import (machinery) was not a significant element in bilateral trade, while Chile's largest 
global export (base metals, accounting for 38.9%  of its global exports) was only ranked 6th among 
Peru's global imports (8% of Peru's imports from Chile).  
38.9 
22.8 7.6 5.7 5.6 4.7 3.9 2.9 2.0 5.8 
13.6 
12.7 
12.6 
10.9 8.9 8.2 8.0 6.6 6.1 5.2 2.1 5.1 36.5 
22.8 12.5 7.9 5.9 5.5 2.1 6.8 
25.6 
22.9 
11.2 8.5 6.0 4.9 4.7 3.2 2.1 10.8 
24.5 
16.2 
10.0 9.9 9.5 6.8 4.8 3.8 3.4 2.7 8.4 60.7 
9.0 7.1 4.8 4.4 3.7 2.0 8.2 Chart I.3
Chile and Peru: product composition of me rchandise trade, annual average (2008-2010)
Chile's imports from Peru
Peru's imports from ChilePer cent
Total:  US$ 1.3 billion
Total:  US$ 1.1  billionTotal:  US $52 billion
Total: US$ 27 billionTotal:  US$ 31 billion
Total:  US$ 63 billionPeru's global exports
Chile's global exportsChile's global imports
Peru's global imports
Animal products
Vegetables
Fats and oilsPrepared foods
Minerals
ChemicalsPlastics, rubber
Articles of wood
Wood pulpTextiles
Precious stones
Base metalsMachinery
Vehicles
Other 
 
 
C. TRADE IN SERVICES AND INVESTMENT  
7. In 2010, Peru's share of total commercial ser vices exports and imports  was 0.1% and 0.17% 
respectively.  Chile's shares represented respectivel y 0.29% and 0.33% of world exports and imports.  
With total commercial services exports of US$3.8 bil lion, and imports of US$5.7 billion, Peru was the 
world 49th largest exporter and 45th  importer compared to Chile's ranking as 32nd largest exporter and 
33rd largest importer (with commercial services  exports of US$71 billion and imports of 
US$59 billion).  
8. Tables I.1 and I.2 below show the breakdown of trade in commercial services and investment 
for Peru and Chile, based on data provided by the Parties and UnctadStat for foreign direct investment.  Trade in commercial services data s hows a growing deficit wi th the world for Peru. 
Peru's main exports of services are travel and transportation services while its imports are dominated 
by transportation services with rapid growth in impor ts of travel services.  Chile exports and imports 
mainly transportation, travel and other business servi ces.  Both Parties are net inward recipients of WT/REG304/1 
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  foreign direct investment although Chile's outward FDI stock is significant. Figures provided by Peru 
show that investment by Chile in Peru al so continued to rise during this period.  
Table I.1. Trade in commercial services and in vestment with Chile and the world, 2006-2008 
A. Peru 
Unit: in million US$ 
Service Item World Chile 
Exports Imports Exports Imports 
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 
Total commercial 
services 2,532 3,021 3,514 3,266 4,214 5,566 - - - - - - 
Transportation services 545 646 818 1,419 1,844 2,560 - - - - - - 
Travel 1,570 1,723 1,991 798 968 1,121 - - - - - - 
Communication services 82 88 125 109 110 133 - - - - - - 
Construction - - - - 124 156 - - - - - - 
Insurance services      103 289 227 265 311 379 - - - - - - 
Financial services 30 38 47 32 29 86 - - - - - - 
Computer and 
information services - 13 20 - 122 169 - - - - - - 
Royalties and licence fees 3 1 2 95 111 159 - - - - - - 
Other business services 200 219 280 547 569 784 - - - - - - 
Personal, cultural and recreation services - 3 4 - 24 19 - - - - - - 
 World Chile 
 Outward Inward Outward Inward 
 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 
Total FDI stocks 1,476 2,284 1,694 20,484 26,808 32,340 - - - 946.5 955.7 1,606.6 
Total FDI flows - 66 736 3,467 5,491 6,924 -0.8 41.5 -0.1 76.7 50.8 651 
 
Table I.2. Trade in commercial services and in vestment with Peru and the world, 2008-2010  
B. Chile Unit: in million US$ 
Service Item World Peru 
Exports Imports Exports Imports 
2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 
Total commercial 
services - - - - - - - - - - - - 
Transportation services 6,456  4,720  6,394 6,646 4,778 6,571 328 241 336 79 66 99 
Travel 1,657  1,604  1,620 983 1,167 1,281 74 58 65 80 92 125 
Communication services 220  153  146 203 161 173 - - - - - - 
Construction and 
installation - - - - - - - - - - - - 
Insurance services      233  228  286 646 869 1,127 - - - - - - 
Financial services - - - - - - - - - - - - 
Computer and information services 127  143  116 273 312 258 - - - - - - 
Royalties and licence 
fees 64  59  64 539 597 701 - - - - - - 
Other business services 1,577  1,222  1,751 1,580 1,628 1,485 - - - - - - 
Personal, cultural and recreation services    
17     
15    
21   
21   
15   
21 - - - - - - 
 World Peru 
 Outward Inward Outward Inward 
 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 
Total FDI stocks 31,820 41,339 49,838 99,359 121,395 139,538 - - - - - - 
Total FDI flows 8,041 8,061 8,744 15,150 12,874 15,095 - - - - - - 
 
Source : Peru and Chile authorities;  UnctadStat (FDI with world). 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
9. The Agreement was signed on 22 August 2006 and entered into force on 1 March 2009.  It 
modifies and substitutes the text, appendices, a nd protocols and instruments of the Economic  WT/REG304/1 
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  Complementarity Agreement N°38 (ACE No 38)7, which was signed on 22 June 1998 and entered 
into force on 1 July 1998.8  
10. The Parties notified the goods and services asp ects of the Agreement to the WTO on 
29 November 2011, in document WT/REG304/N/1–S/C/ N/613.  The notification was made pursuant 
to Article XXIV:7(a) of the GATT 1994 for goods, a nd 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: 
 Peru : 
"http://www.acuerdoscomerciales.gob.pe/index.ph p?option=com_content&view=category&la
yout=blog&id=72&Itemid=95" 
 
 Chile :  
 http://rc.direcon.cl/sites/rc.direcon.cl/files/bibliotecas/PER_TN_TLC_0309.pdf 
 
B. STRUCTURE OF THE AGREEMENT  
11. The Agreement is composed of a Preamble and twenty Chapters. It is complemented by a 
number of Annexes and Appendices, related to specifi c Chapters of the Agreement and which include 
the Parties' Schedules for liberalization in goods a nd in services.  Moreover, through an exchange of 
letters in 2007, some provisions of the Ag reement were amended by the Parties.  
12. Box II.1 below summarizes the legal frame work established by the Agreement. 
Box II.1: structure of the Agreement 
Chapters, Annexes, and 
Appendixes Title/description 
Preamble  
Chapter 1 Initial provisions 
Chapter 2 General Definitions 
Chapter 3 Trade in Goods 
Chapter 4 Rules of Origin 
Chapter 5 Customs Procedures and Trade Facilitation 
Chapter 6 Safeguards 
Chapter 7 Antidumping and Countervailing Measures 
Chapter 8 Competition Policy 
Chapter 9 Sanitary and Phytosanitary Measures 
Chapter 10 Technical Barriers to Trade 
Chapter 11 Investment 
Chapter 12 Cross-Border Trade in Services 
Chapter 13 Temporary Movement of Persons 
Chapter 14 Transparency 
Chapter 15 Administration of the Agreement (Institutional provisions) 
Chapter 16 Dispute Settlement 
Chapter 17 Exceptions 
Chapter 18 Co-operation and Trade Promotion 
Chapter 19 General Provisions 
Chapter 20 Final Provisions 
  
Annex I Parties' lists of Non-conforming measures (rel ated to Articles 11.8 and 12.7) - existing measures 
Annex II Parties lists of Non-conforming measures (related to Articles 11.8 and 12.7) - new measures 
Annex 3.2-A Schedule of Tariff conce ssions (related to Article 3.2.3a-l) 
Box II.1 (cont'd) 
                                                      
7 The text of ACE No 38 is available at http://www.sice.oas.org/Trade/chilper/chpeind.asp .  ACE38 
was concluded by the Parties pursuant to the Montevid eo Treaty of 1980, through which the Latin American 
Integration Association (L AIA) was established. 
8 While the Agreement deepened a nu mber of ACE No 38 disciplines in areas such as market access, 
rules of origin, customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary 
measures, as well as temporary entry of business persons, it also addressed some areas which were not covered 
under ACE No 38, such as dispute settlement, investment, and cross-border trade in services. WT/REG304/1 
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  Annex 3.2-B Schedule of Tariff conce ssions (related to Article 3.2.2m) 
Annex 3.2-C Tariff concessions; Complement ary Note (related to Article 3.2.10) 
Annex 3.2-D Tariff concessions (related to Article 3.2.11) 
Annex 4.5 Specific Rules of origin  
Annex 4.9 LAIA Certificate of origin  
Appendix 1 "not produced" list concerning th e textile sector (related to Annex 4.5) 
Annex 9.2.2 Co-operation and Coordination Agreement in  sanitary matters related to agricultural and fish 
products  
Annex 9.8.2 Relevant authorit ies and contact points  
Annex 10.5 Existing deadlines for the submission  of inscriptions in the sanitary register  
Annex 10.11 TBT Committee  
Annex 11-A Customary International Law (related to Article 11.4) 
Annex 11-B Public Debt (related to Articl es 11.2, 11.3, 11.10.1, 11.16.1, and 11.16.4) 
Annex 11-C Payments and Transfers (related to Article 11.9) 
Annex 11-D Expropriation (r elated to Article 11.10) 
Annex 11-E Termination of the Bilateral Inve stment Treaty (related to Article 11) 
Annex 11-F Chile's Law-Decree 600 (related to Articles 11.2, 11.3, and 11.10) 
Annex 11-G Possible Body or Bilateral Appe al Mechanism (related to Article 11.26) 
Annex 11-H Submission of documents to a Party in conformity with Section B (related to 11.27) 
Annex 12.10.5 Professional Services  
Annex 13.3-A Temporary Entr y of Business Persons  
Appendix 13.3-A.1 Professional Visitors  
Annex 13.3-B Temporary Entry of Persons  
Annex 15.1.1 Members of the Administrative Commission  
Annex 15.1.3 Implementation of modifications approved by the Administrative Commission  
Annex 15.2 Coordinators  
Annex 17.3 Competent authorities  
  
Exchange of letters (dated 16 March and 18 April 2007) Modifications of parts of the Agreement. 
Source: WTO Secretariat based on the Agreement.
 
 
III. PROVISIONS ON TRADE IN GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
13. Preferential trade in goods between the Partie s is governed by Chapters 3 to 10 of the 
Agreement.   
14. The Parties agree to apply national treatme nt to each other's goods in accordance with 
Article III of the GATT 1994 and other releva nt WTO Agreements (Article 3.1).   
2. Liberalization of trade and tariff lines 
15. The tariff elimination programme attached to the Agreement is, to a large extent, the same as 
(in fact the continuation of) that of the ACE No  38.  Consequently, tariff elimination had been 
initiated, as part of ACE No.38 and on 1 July 1998; therefore prior to the Agreement's entry into force 
(1 March 2009). 
16. Article 3.2 of the Agreement establishes th e modalities applicable to the liberalization 
programme agreed by the Parties and Annex 3.2-A of the Agreement contains the list of products 
benefiting from preferential treatment under the Ag reement.  The coverage of Annex 3.2-A of the 
Agreement mirrors, to a large extent, the coverage applicable under ACE No 38, with a number of 
adjustments.9  One single list applies to both Parties, though modalities for the calendar of tariff 
elimination may differ between Peru and Chile as indicated in Article 3.2.3 (b)-(m), complemented by 
the specific conditions on certain products in Annex 3.2-B of the Agreement.  
                                                      
9 In part to take into account the two Protocols to AC E No 38 adopted by the Parties in late 1998 and in 
early 2005.  WT/REG304/1 
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  17. Such specific conditions are, inter alia, inher ited from former preferential agreements between 
the Parties (such as the Partial Scope Agreement N°  28), either on the preservation of historical 
heritage, or based on reciprocity, a nd/or related to the special regi me negotiated bilaterally between 
the Parties and applicable to some agricultura l and fishery products.  The Parties had already 
implemented the special elimination programme unde r the ACE No 38 before the Agreement entered 
into force.  
18. Certain categories of products are not covered by  the liberalization programme such as used 
goods, including when the corresponding sub-parts of the NALADISA nomenclature are covered by Annex 3.2-A (Article 3.2.7). 
19. Moreover, specific duties in force on the entry into force of the Agreement, from either Peru's 
system of Variable Specific duties or from Chile's  Price Band Mechanism are also not subject to 
liberalization.  These mainly agricultural products are listed by each Party in Annex 3.2-D of the 
Agreement
10 (Article 3.2.11). 
20. In addition, the Agreement states that goods el aborated in or originating from Free Zones 
(Zonas Francas ) or from enterprises, benefiting from advant ages granted to users of Free Zones, are 
excluded from the liberalization programme. Such goods  need to be clearly identified when clearing 
customs (Article 3.4).  Through the Administrativ e Commission established by the Agreement, the 
Parties agreed, within one year following the entry in to force of the Agreemen t, to analyse the Free 
Zone regimes in force in both countries, with a view to examine the possibility to confer special 
treatment to products produced or originating in free zones (These provisions ar e incorporated into the 
Agreement through Article 20.5.3and Annex 3.2-B(11). 
21. The calendar of tariff elimination, in Article 3. 2.3 and Annex 3.2-B, also mirrors, to a large 
extent, liberalization under ACE No 38, which started on 1 July 1998 as well as accelerated 
liberalization under its Second Protoc ol.  Thus although the Agreement when it entered into force on 
1 March 2009 includes twelve categories under which tariffs are to be phased out11, tariff elimination 
remained to be completed for only two categories.  The Agreement also contain, in Annex 3.2-B, 
different reductions for certain products. Under the first category12 the margin of preference in place 
at the entry into force of the Agreement (17%) was to be increased in five successive steps, to result in 
duty free treatment on1 July 2013. Under the second category13 the margin of preference in place at 
the entry into force of the Agreement (11%) was to be  increased in nine successive steps, to result in 
duty free treatment on 1 July 2016. Full implementation is expected to be achieved on 1 July 2016. 
3. Liberalization schedule 
22. The Agreement contains a single list of tariff lines subject to the liberalization programme 
applicable to both Parties (Annex 3.2-A) with different phase out periods for the Parties under the 
provisions of Article 3.2.3 and Annex 3.2-B and the special modalities for certain agricultural goods which are not subject to liberalization (Annex 3.2-D).  
                                                      
10 For Peru: certain cereals, rice, suga r, corn (maize), as well as some dairy products;  for Chile: certain 
cereals and flours, oil seeds, vegetable oils, and sugar.  In the case of Peru, the Supreme Decree N° 016-91-AG 
mentioned in Annex 3.2-D was repealed. However, the Supreme Decree N° 144-93-EF  and the Supreme Decree 
N° 133-94-EF about FOB Referenc e Prices are still in force for corn, rice, sugar and wheat. 
11 Six categories in the textile sector, and nine for a small number of products. 
12 Corresponding, in 1998, to a 15-year transition pe riod for duty elimination (D-15).  This category 
covers 255 tariff lines contained in NALADISA Chapters 2, 4, 10, 11, 15, 17-19, 22, 23, 28-30, 33-37, 39, 42, 
44, 48, 64, 68-70, 73, 74, 76, 84, 85, 94, and 96. 
13 Corresponding, in 1998, to an 18-year transition period for duty elimination (D-18).  This category 
covers 18 tariff lines for some meat products, wheat or meslin and its flour, wines, paper article, and ships, boats 
and floating structures. WT/REG304/1 
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  23. The Tables in the following sections present the liberalization programme applicable to the 
Parties, and reflect that the implementation be gan in 1998 and that the lists were based on 
NALADISA 1993.
14  A focus is placed on the liberalization commitments implemented by the Parties 
since 2009 as the present factual presentation covers  the 2009 Agreement.  As liberalization under 
Article 3.2 of the Agreement takes place every 12 months on 1 July every year for most products 
(except for textiles which, other than for the first year, are subject to an a nnual liberaliza tion calendar 
which starts on 1 January) Peru provided its  data on liberalization on a biannual basis.15  The tables 
below reflect, for both Parties, annual liberalizati on for the period 1 July-30 June of the following 
year. 
(a) Chile 
24. Chile's applied tariff in 1998 c onsisted of 6,933 lines at the HS eight-digit level (HS 1992).  
All the tariffs were ad valorem and 9 lines were duty free.16  Table III.1 shows the scheduled duty 
elimination in terms of tariff lines and trade, as app lied by Chile to imports from Peru.  As already 
indicated, the tariff liberalization programme (under ACE No 38) started in 1998.  Thus, before the 
entry into force of the Agreement (in 2009), 6,636 tariff lines (95.8% of Chile's tariff) were already 
duty-free for Peruvian products, representing 95.2% of  Chile's imports by value from Peru (during 
2008-2010).  Following the entry into force of the Ag reement, an additional 270 lines (3.9% of Chile's 
tariff) will become duty-free for imports from Peru, in 2013.  As a result, 99.7% of Chile's tariff will 
be duty free for imports from Peru (in 2013), corres ponding to 99.3% of imports by value from Peru.  
By the end of the implementation period (2016), 6,930 tariff lines, corresponding to close to 100% of Chile's tariff will be duty free for imports from Peru.  At the end of the impl ementation period, 3 tariff 
lines
17 (corresponding to less than 0.1% of Chile's  tariff) will remain dutiable, representing a 
negligible share of imports by value from Peru. 
Table III.1Tariff elimination commitments under the Agreement and corresponding average trade 
A. Chile 
Duty phase-out 
period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile imports from 
Peru 
(in million US$) % of Chile's total 
imports from Peru 
1995-1997 2008-2010 1995-1997 2008-2010 
MFN duty free 
(1998) 9 0.1 0.0 0.1 0.0 0.0 
1998 2,604 37.6 75.5 906.4 59.0 70.5 
2001 47 0.7 2.0 3.0 1.6 0.2 
2002 550 7.9 6.6 18.6 5.2 1.4 
2003 2,459 35.5 23.7 66.0 18.6 5.1 
2004 4 0.1 0.5 116.1 0.4 9.0 
2006 234 3.4 6.3 53.8 4.9 4.2 
2007 3 0.0 0.2 0.5 0.1 0.0 
2008 726 10.5 4.9 61.9 3.8 4.8 
2013 270 3.9 8.2 53.4 6.4 4.1 
2016 24 0.3 0.0 6.3 0.0 0.5 
Remain dutiable 3 0.0 0.0 0.0 0.0 0.0 
Total 6,933 100.00 127.9 1,286.1 100.0 100.0 
Note: Based on the HS 1992 nomenclatur e (conversion from NALADISA 1993). 
Source :  WTO estimates based on data provided by Chile. 
                                                      
14 In the following Tables, the Secretariat is however referring to HS 1992 to ensure coherence between 
factual presentations;  NALADI SA 1993 classification codes being the sa me as in the HS 1992 nomenclature at 
the HS 6-digit level. 
15 For more information, readers may refer to 
"http://aladi.org/nsfaladi/textacdos.nsf/02f226c90 02f6aebf03257491004226fe/455291a65c9de2a303257a08005
2e4da?OpenDocument ." 
16 By comparison, in 2009, Chile's applied tariff consisted of 7,706 lines at the HS eight-digit level 
(HS 2007), including 8 compound duties.  35 tariff lines were duty free. 
17 Retreated tyres, used tyres, and used clothing.  WT/REG304/1 
 Page 9 
 
 
  25. Table III.2 shows Chile's tariff elimination, by  HS section.  The 3 lines that will remain 
subject to duties once implementation is completed are all found in sections VI (HS Chapter 40 - rubbers and articles thereof) and XI (HS Chapter 63 - made-up textile articles), with final average 
preferential tariffs at 6% while the MFN applied rate is 11%.   
Table III.2 
Chile:  Tariff elimination under the Agreement, by HS section 
HS 
section  MFN 
avg. 
% Total 
No. of 
lines  MFN 
duty-
free 
(1998)  Number of duty-free lines under the Agreement 
No. of lines 
remaining dutiable 
Avg. Final Tariff 
(Dutiable)% 1998 
2001 
2002 
2003 
2004 
2006 
2007 
2008 
2013 
2016 
I 11.0 352  189   109    35 15 4   
II 11.0 447  196   179    56 12 4   
III 11.0 135  37   54    9 35    
IV 11.0 367  56 2  158   1 101 43 6   
V 11.0 267  235   10 2 19  1     
VI 11.0 1,379  1,043   223 2   78 33    
VII 11.0 272  105   72    72 21  2 6.0 
VIII 11.0 122  44   33    42 3    
IX 11.0 119  58   50  4  6 1    
X 10.9 164  29   32    76 24 3   
XI 11.0 1,030  190 45 550 30  211  3   1 6.0 
XII 11.0 69  4   28   1 17 19    
XIII 11.0 166  20   123    10 13    
XIV 11.0 79  50   29         
XV 11.0 641  226   279    115 21    
XVI 11.0 793 1 108   610   1 48 25    
XVII 10.1 133 8 4   82    31 1 7   
XVIII 11.0 236  8   225    3     
XIX 11.0 17     17         
XX 11.0 138  1   110    23 4    
XXI 11.0 7  1   6         
Total 11.0 6,933 9 2,604 47 550 2,459 4 234 3 726 270 24 3 6.0 
 
Note: Based on the HS 1992  nomenclatu re (conversion from NALADISA 1993). 
 
Source : WTO Secretariat estimates based on data provided by Chile.  
 
(b) Peru 
26. Like in the case of Chile, Peru's applied ta riff in 1998 consisted of 6,933 lines at the 
HS eight-digit level (NALADISA 1993). Table III.3 show s the scheduled duty elimination in terms of 
tariff lines and trade, as applied by Peru to imports  from Chile. Before the entry into force of the 
Agreement (in 2009), 6,013 tariff lines (96.8% of Pe ru's tariff) were already duty-free for Chilean 
products, as a result of the implementation of ACE No 38, representing 92% of Peru's imports by value from Chile (during 2008-2010).  On the entry in to force of the Agreement (2009), an additional 
39 lines (0.6% of Peru's tariff) became duty-free for im ports from Chile.  As a result, 97.4% of Peru's 
tariff was duty free for imports from Chile, correspondi ng to 92.9% of imports by value from Chile.  
Four further phases of duty elimination are schedul ed for 2011, 2012, 2013 and 2016.  By the end of 
the implementation period (2016), 6,932 tariff lines, corresponding to close to 100% of Peru's tariff will be duty free for imports from Chile.  At the end of the transition period, one tariff line
18, for 
which duties are currently levied on an MFN basis,  will remain dutiable, representing a negligible 
share of imports by value from Chile. 
                                                      
18 In fact, three tariff lines are excluded from the Agreement (HS 40121000, 40122000, and 63090000). 
The 2007 MFN duty of HS 40121000, was already duty free, and the MFN duty of HS 4012200, in 2008, was also already duty free.  This explai ns why, at the end of the implementa tion period, the Statistics computed by 
the Secretariat show only one tariff line remain ing dutiable, while three lines are excluded. WT/REG304/1 
Page 10  
 
  Table III.3 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Peru 
Duty phase-out period Number 
of lines % of total lines 
in Peru's tariff 
schedule Value of Peru imports from Chile 
(in million US$) % of Peru's total imports from 
Chile 
1995-1997 2008-
2010 1995-1997 2008-2010 
MFN duty free (1998) 0 0.0 0.0 0.0 0.0 0.0 
1998 2,629 37.9 69.5 372.8 23.9 34.6 
2001 47 0.7 0.1 0.0 0.0 0.0 
2002 549 7.9 4.1 11.6 1.4 1.1 
2003 2,441 35.2 76.3 227.8 26.2 21.1 
2004 35 0.5 0.5 0.9 0.2 0.1 
2005 2 0.0 0.1 1.2 0.0 0.1 
2006 234 3.4 10.9 154.6 3.7 14.4 
2007 110 1.6 8.7 14.5 3.0 1.3 
2008 666 9.6 67.6 207.8 23.2 19.3 
2009 39 0.6 14.4 9.8 5.0 0.9 
2011 23 0.3 0.4 0.1 0.1 0.0 
2012 1 0.0 0.3 0.1 0.1 0.0 
2013 142 2.0 34.6 71.5 11.9 6.6 
2016 14 0.2 3.6 4.6 1.2 0.4 
Remain dutiable a 1 0.0 0.0 0.0 0.0 0.0 
Total 6,933 100.00 291.0 1,077.1 100.0 100.0 
 
a two tariff lines under the exclusion category are not in cluded because the MFN is already duty-free in 2008. 
 
Note: Based on the NALADISA 1993 nomenclature. The Secretariat calcu lated the preferential duties and determined the number of 
duty free tariff lines based on Peru's MFN sources from the WTO-ID B and the Peruvian data submission (margin of preference and 
concordance table). The MFN duties were adju sted to 8-digit level. The Secretariat pr oceeded with these adjustments with a view  to 
reconcile NALADISA and HS nomenclatures in  order to ensure that comparable methodol ogies be applied through all factual present ations.  
 
Source :  WTO estimates based on data and concorda nce tables provided by Peru, and WTO-IDB. 
 
27. Table III.4 shows Peru's tariff elimination, by HS section.  One tariff line, in section XI 
(HS Chapter 63 - made-up textile articles) with a fina l preferential tariff rate of 13% compared to the 
MFN applied rate of20%, will remain subject to  duties once implementation is completed.  
Table III.4 
Peru:  Tariff elimination under the Agreement, by HS section 
HS 
section  
MFN average%  
Total No. of lines  Number of duty-free lines 
No. of lines 
remaining dutiable a 
Avg. Final Tariff 
(Dutiable)% 1998 
2001 
2002 
2003 
2004 
2005 
2006 
2007 2008 
2009 
2011 
2012 
2013 2016 
I 14.2 352 190   108    2 33 9 4  2 4   
II 15.2 447 191   183 2   3 56 6 1  4 1   
III 12.0 135 36   55    10 8 12   14    
IV 15.4 367 69 2  158    2 94 9 14  13 6   
V 12.0 267 235   10  2 19  1        
VI 12.0 1,379 1,043   223 2   6 73    32    
VII 12.0 272 108   72    18 63    11    
VIII 12.0 122 44   33     42    3    
IX 12.0 119 58   50   4  6    1    
X 12.0 164 35   32    2 73    19 3   
XI 17.3 1,030 190 45 549 1 30  211  3      1 13.0 
XII 16.5 69 4   28     17   1 19    
XIII 12.0 166 22   124    1 9    10    
XIV 12.0 79 50   29             
XV 12.0 641 226   279    18 110 1 4  3    
XVI 12.3 793 108   611 1   23 38 2   10    
XVII 12.0 133 7   87    22 17        
XVIII 12.0 236 9   225     2        
XIX 12.0 17    17             
Table III.4 (Cont'd) WT/REG304/1 
 Page 11 
 
 
  HS 
section  
MFN average%  
Total No. of lines  Number of duty-free lines 
No. of lines 
remaining dutiable a 
Avg. Final Tariff 
(Dutiable)% 1998 
2001 
2002 
2003 
2004 
2005 
2006 
2007 2008 
2009 
2011 
2012 
2013 2016 
XX 12.0 138 3   110    3 21    1    
XXI 12.0 7 1   6             
Total   2,629 47 549 2441 35 2 234 110 666 39 23 1 142 14 1 13.0 
 
a two tariff lines under the exclusion category are not included because the MFN is already duty-free in 2008. 
 Note: Based on the NALADISA 1993 nomenclature. The Secretariat calcu lated the preferential duties and determined the number of 
duty free tariff lines based on Peru's MFN sources from the WTO-ID B and the Peruvian data submission (margin of preference and 
concordance table). The MFN duties were adju sted to 8-digit level. The Secretariat pr oceeded with these adjustments with a view  to 
reconcile NALADISA and HS nomenclatures in order to ensure that comparable methodologies be  applied through all Factual 
Presentations.  
 
Source : WTO Secretariat estimates based on data provided by Peru. 
 
4. Tariff rate quotas 
28. The Agreement makes specific reference to th e liberalization programme contained in the 
Partial Scope Agreement No 28, between the Par ties (Annex 3.2-B of the Agreement), under which 
the Parties had committed to progressively eliminate a quota on Portland cement (NALADISA  2523.29.00).  For both Parties, the quota was to be  dismantled in 6 successive steps between 1998 and 
2004 and eliminated on 1 July 2004.  Consequently, at the entry into force of the Agreement 
(in 2009), no tariff rate quotas were appli cable to the Parties bilateral trade. 
5. Import restrictions 
29. The Parties commit not to maintain or introduce any new import restriction
19 through quotas, 
licensing, or by other means (Article 3.2.1). 
B. RULES OF ORIGIN  
30. Disciplines regarding rules of origin are set out in Chapter 4 of the Agreement.20  
31. Articles 4.2 through 4.5 provide  the substantive rules. A good21 is considered as originating 
when: 
(a) it is wholly obtained (as defined in Article 4.2. b-h) or produced entirely in the 
territory of the Parties from originating materials (as defined in Article 4.2.a);  
(b) it is the result of a production and transformation process, using non-originating 
materials, which confers to the product a new specificity as demonstrated by a (four-digit) change of classification in the NALADISA nomenclature (Article 4.2.i)
22;  
                                                      
19 "Restrictions" are defined in the Agreement as all measures of administrativ e or financial character, 
including measures related to exchange rates, through which a Party would impede or render imports difficult, 
through a unilateral deci sion (Article 3.2.2). 
20 Article 4.17 defines the terms used in Chapter 4. 
21 A set of goods is originating only if each good in  the set is originating and meet the requirements 
established in Chapter 4. WT/REG304/1 
Page 12  
 
  (c) it is produced in the territory of the Parti es, using non-originating materials, does not 
result in a classification change, but conforms to a regional value content (RVC) not less than 50% of the export value
23 of the concerned good.  The same alternative 
value-added criteria is applicable to asse mbly operations taking place in the territory 
of the Parties (Article 4.2.j-k);  or 
(d) it complies with the specific ru les applicable to selected products such as textiles and 
apparel as indicated in the Annex 4.5.24  Other specific rules of origin are listed in 
Part IV of Annex 4.5 and are applicable  to some goods of: derivatives from copper 
and zinc, pharmaceutical products, vinyl, and fruit juices.  The specific rules prevail 
over the general criteria mentioned above.  
32. Article 4.6 recognizes bilateral cumulation of origin.  This means that originating materials 
from the territory of one Party, used in the productio n of a good in the territory of the other Party, can 
be considered as originating materials from that other Party. 
33. Articles 4.7 through 4.12 are procedural and lay out disciplines related to the expedition, 
transport and transit of goods to avoid circumventi on through transhipment of the established rules of 
origin (Article 4.7), and billing by non-party opera tors (Article 4.8), and the certificate of origin25 as 
well as the modalities applicable to its issuance, its u se, and its validity (Articles 4.9 and 4.10).  The 
administrative conditions attached to the grant of preferential treatment are covered by Article 4.11, 
while the rules applicable to the refund of customs duties are contained in Article 4.12. 
34. Articles 4.13 and 4.14 detail the verification an d control processes and the conditions to be 
fulfilled by the competent authority to negate preferential treatment.  
35. Article 4.15 provides for the protection of confidentiality for the information obtained in the 
context of the verification and control processes. 
36. Article 4.16 foresees the possibility to sanction when the certificate of origin does not meet 
the requirements established in Chap ter 4 or to sanction exporters and/or producers in cases of false 
declaration or fraud.  
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
37. The Parties commit not to maintain or intr oduce any new export restriction through quotas, 
licensing, or by other means (Article 3.2.1).  More over, the Parties will not apply to their bilateral 
trade any export duties, without prejudice to provisions which may be contained in the 
WTO Agreement (Article 3.2.3(12)). 
                                                                                                                                                                     
22 Classification changes resulting from minimal operations, as defined in Article 4.3, are however not 
considered to be sufficient to grant originating status. 
23 CIF (named port of destination)  compared to FOB export value. 
24 Exceptions to the specific rules for some textiles and apparel products are foreseen for some yarns, 
threads, and fabrics not originating from but being used as  inputs by the parties. 99 8-digit tariff lines benefiting 
from this exception have been listed by the Parties in Appendix 1 to Annex 4.5. 
25 The standard format developed under LAIA is attached as Annex 4.9 to the Agreement.  WT/REG304/1 
 Page 13 
 
 
  D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and Phytosanitary measures 
38. Chapter 9 of the Agreement covers Sanitary an d Phytosanitary Measures (SPS).  It reaffirms 
the Parties' existing rights and obl igations under the WTO SPS Agreement26, the decisions of the 
SPS Committee established under the WTO, as we ll as under the Co-operation and Coordination 
Agreement on Sanitary and Phytosanitary measur es concluded (in 1998) between Peru and Chile27 
(Article 5.4).   
39. The Agreement underlines that the Parties will base their SPS measures on international 
standards and guidelines but that they may intr oduce or maintain SPS measures which result in a 
higher level of SPS protection if there is a scientific justification (Article 9.3).  Other provisions in 
Chapter 9 highlight certain aspects of provisions in the WTO SPS Agreement.  This is in particular 
the case for equivalence (Article 9.4), recognition of pest- or disease-free areas or areas of low pest or 
disease prevalence (Article 9.5), and assessment of risk  and determination of th e appropriate level of 
protection (Article 9.6). Moreover, the Parties may subscribe to cooperation and coordination 
agreements to facilitate the exchange of goods without presenting a health risk to both countries 
(Article 9.7). 
40. A specific mechanism for bilateral co-opera tion is established through a Committee on 
SPS measures (Article 9.8).28  According to Article 9.9, clarifies the procedure applicable in case of 
dispute related to SPS matters.  In particular when  a Party considers that a SPS measure may have an 
impact on bilateral trade, cons ultations should take place, pr imarily through the Committee on 
SPS measures, established under Article 9.8. 
(b) Technical barriers to trade 
41. Chapter 10 of the Agreement covers Technical  Barriers to Trade (TBT) measures.  It 
reaffirms the Parties' existing rights and oblig ations under the WTO TBT Agreement and underlines 
that they will base their technical standards and regulations29, as well as recognition and conformity 
assessment procedures on international guidelines and recommendations as established by the WTO 
TBT Agreement (Article 10.2). 
42. In connection with trade facilitation, the Parties commit to intensify joint efforts in particular 
to identify areas of bilateral co-operation in matte rs related to technical regulations, conformity 
assessment, and Transparency.  The Agreement establishes deadlines, di fferent for Peru and Chile, for 
issuing registrations of specific products30 in their respective sanitary records (Article 10.5 and 
                                                      
26 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 harmonized terms from the International Office of Epizootics (OIE), the International Plant Protection Conventio n (IPPC), and the Codex Alimentarius (Codex). 
27 The text, in Annex 9.2.2, entitled in Spanish is: "Acuerdo de Cooperación y Coordinación en materia 
de Sanidad Agropecuaria suscrito entre el Servicio Nacional de Sanidad Agraria (SENASA) del Ministerio de Agricultura de la Republica del Perú y el Servicio Agrí cola y Ganadero (SAG) del Ministerio de Agricultura de 
la Republica de Chile". 
28 Annex 9.10 lists the authorities of both Parties competent on SPS matters. 
29 International Standards setting bodies referred to  by the Agreement are those referred to in the 
WTO TBT Agreement, in particular the ISO, the IEC, the Codex Alimentarius, the ITU, and the WMO. 
30 Specific deadlines are set for pharmaceutical pro ducts (generics and new products), cosmetics, 
pharmaceutical products used for veteri nary purposes, and pesticides.  S ee Annex 10.5 of the Agreement for 
details. WT/REG304/1 
Page 14  
 
  Annex 10.5).  Moreover, technical co-operation and exchange of info rmation are encouraged through 
provisions in Articles 10.12 and 10.13.   
43. Bilateral co-operation is strengthened thr ough the establishment of a Committee on TBT 
(Article 10.11).
31 
2. Safeguard mechanisms 
44. Chapter 6 of the Agreement contains disciplin es on safeguards (global and bilateral), briefly 
described below and which remained unchanged fro m the provisions of the ACE No 38.  The 
procedures applicable to safeguard measures are re gulated by Articles 6.4 through 6.7, including the 
administration of the process, and the possibility to  initiate the Agreement specific dispute settlement 
mechanism, which may be applicable only afte r a safeguard has been taken by a Party. 
(a) Global safeguards 
45. The Agreement confirms the Parties' right s and obligations under Article XIX of the 
GATT 1994 and the WTO Agreement on Safeguards (Ar ticle 6.3).  Any exception granted by a Party 
to a Third Party is automatically extended to the other Party in the circumstances and conditions that 
the exception was granted. Paragraph 3 provides that a Party shall notify the other Party in case of an 
initiation of a procedure that could result in the a pplication of a global safeguard measure. No Party 
shall apply a global safeguard measures without pr ior notice, in writing, to the Administrative 
Commission established by the Agreement.  
(b) Bilateral safeguards 
46. Under Article 6.1, 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, an d under such circumstance 
that the imports are a substantial cause of serious in jury or threat thereof to the domestic industry of 
the importing Party producing a like or directly competitive good.  
47. The safeguard measure may consist of either the suspension of the tariff reduction; of a partial 
reduction of the margin of preference defined by the liberalization programme; or of an increase in the 
rate of duty on the products 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 this Agreement.  The safeguard can be 
applied only following an investigation by the Pa rty's competent authorities, for a maximum of 
two years extendable for a maximum of one year, if the injury persists. Reapplication of a safeguard 
measure is not permissible during a period at least eq ual to the duration of the previous measure - and 
at least during 2 years following it -, and the imposition of a safeguard shall not reduce access by the 
imported goods during the three years preceding the initiation of the investigation.  Article 6.2 
foresees the possibility of taking provisional measur es in critical circumstances, for a maximum of 
180 days.  
(c) Other 
48. In the event of serious balance-of-payment and ex ternal financial difficulties, the Parties' right 
to adopt or maintain restrictions on trade in goods  or in trade in services are preserved in accordance 
with the conditions contained in the BOP provisions  of the WTO Agreements and the constitutive text 
of the International Monetary Fund (Article 17.4).  
                                                      
31 Annex 10.11 lists the authorities of both Parties competent on TBT matters.  WT/REG304/1 
 Page 15 
 
 
  3. Anti-dumping and countervailing measures 
49. The Agreement confirms the Parties' right s and obligations under Article VI of the 
GATT 1994 and the WTO Agreements on Antidum ping and on Subsidies and Countervailing 
measures (Article 7.2).  Exchange  of information between the competent authorities shall take place 
through the Administrative Commission established by the Agreement. 
4. Subsidies and State-aid 
50. The Parties condemn all unfair trade practices  and commit to eliminate measures which may 
cause distortions to bilateral trade.  In this c ontext, the Parties commit not to introduce new export 
subsidies affecting bilateral trade a nd, at the latest by 31 December 200232, to eliminate export 
subsidies for all products covered by the liberalization programme (Article 7.1).  
5. Customs-related procedures 
51. The WTO Customs Valuation Agreement is a pplicable for customs valuation under the 
Agreement (Articles 3.2.3 and 3.3) .  
52. Chapter 5 of the Agreement also covers custom s procedures and trade facilitation.  It requires 
that the Parties publish33 their customs laws, regulations, and administrative procedures on the 
Internet or a comparable computer based telecomm unications network, and establish or maintain a 
contact point to deal with inquiries from interest ed persons (Article 5.1).  The maintenance or 
development of simplified customs procedures is required to ensure an efficient release of traded 
goods (Article 5.2). The Agreement also establishes rules to expedite procedures through recourse to 
information technology (Article 5.3), and to adopt risk management techniques to focus inspections 
on high-risk goods and facilitate clearance of low-risk goods (Article 5.4).  
53. To facilitate trade and promote customs co-opera tion on a bilateral and multilateral basis, the 
Parties agree to cooperate and to adopt and appl y their import, export and transit requirements and 
procedures for goods on the basis of a number of obj ectives and principles listed in Article 6.1.   
54. The Agreement also provides for a number of trade facilitation-related benchmarks for the 
application of customs and border related pro cedures, through customs co-operation and regular 
exchange of customs-related inform ation (Article 5.5), and to mainta in confidentiality (Article 5.6). 
Separate procedures applicable to express shipments are regulated by Article 5.7. With respect to 
determinations on customs matters, e ach Party shall ensure that impor ters in its territory have access 
to independent administrative and judicial reviews of  administrative actions (Article 5.8). Article 5.9 
provides for the adoption or maintenance of civil, ad ministrative, or penal sanctions for violations of 
the Parties' customs laws and regulations, including those governing tariff classification, customs 
valuation, rules of origin, and the entitlement to preferential tariff treatment under the Agreement. 
55. The importing Party, through its customs authority or competent governmental authority, 
shall issue, upon written request by an importer, ex porter, or producer, written advance rulings prior 
to the import of a good into its territory, concer ning: tariff classification; whether a good qualifies as 
originating under Chapter 4, and any other issues as  the Parties may agree.  Advance rulings shall be 
in force from their date of issuance, or as specif ied by the ruling, for a maximum of three years, and 
may be modified or revoked after their notifi cation.  If the person requesting provides false 
information or omits relevant information with re spect to an advance ruling, or does not act in 
                                                      
32 The date in the ACE No 38 has not been modified in the Agreement.  This provision should therefore 
have been fully implemented when the Agreement entered into force. 
33 As feasible, before their ad option to allow for comments. WT/REG304/1 
Page 16  
 
  accordance with the ruling's term s and conditions, the importing Party may apply appropriate 
measures, including civil, criminal, and admini strative actions, penalties, or other sanctions 
(Article 5.10). 
56. A Tariff Classification Committee is establishe d to address possible divergences between the 
Parties on tariff classification. The Committee may consult the LAIA or the World Customs 
Organization (Article 5.11). 
57. Under Article 5.12, the implementation of some  provisions in Chapter 5 are subject to the 
following transition periods: (a) 2 years from the date  of entry into force of the Agreement for the 
publication of customs laws and regulations (Articl es 5.1.1 and 5.1.2); (b) 1 year from the date of 
entry into force of the Trade Promotion Agreem ent (TPA) between Peru and the United States on 
1 February 2009 for the simplification of procedures for the efficient release of goods (Article 5.2 (b) 
and (c));  2 years from entry into force of the TPA for the establishment of separate procedures for 
express shipments (Article 5.7.(d)); and 3 years from the entry into force of the TPA for the 
enforcement of advance rulings (Article 5.10.3).  
E. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
58. Special modalities for textiles, the exclusion of  certain specific agricultural products from 
liberalization under Peru's system of Variable Sp ecific duties or Chile's Pr ice Band Mechanism, and 
some "historical heritage"-related products ( inter alia , for some agricultural and fishery products), 
have been described above in the context of the pr esentation of the liberalization of trade and tariff 
lines (Section III.A.2 above).  
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
59. In the Agreement, rules governing trade in services are found in Chapter 12 on Cross-border 
trade in services, which covers modes of supply 1, 2, and 4.  However, measures adopted or 
maintained in relation with financial services (as defi ned in Article 12.13), most air transport services, 
including traffic rights and some auxiliary ser vices, as well as government procurement are not 
covered by the Agreement. An a nnual review of the matters covere d by Chapter 12 will be conducted 
by the Parties (Article 12.11).  
60. Investment, encompassing GATS mode 3 (covered investment) but not limited to 
services-related investments, is dealt with in Chapter 11.34  As for Chapter 12, Chapter 11 does not 
apply to investment related measures applicab le to financial institutions and government 
procurement.35  Nothing in the Agreement prevents the Parties from prescribing special requirements 
and formalities such as residency requirements or oblig ations for investors to acquire legal personality 
in a Party (Article 11.11).  Article 11.5 specifies that the provisions on investment apply to State enterprises or other persons that exercise any re gulatory, administrative or other governmental 
authority delegated to it by that Party, such as the authority to expropria te, grant licences, approve 
commercial transactions or impose quotas, fees or ot her charges.  Finally, Temporary movement of 
                                                      
34 Covered investment is defined as investments by an investor of a Party in the territory of the other 
Party.  Annexes 11-A to 11-H complement the disciplines on investment. 
35 It also does not apply to any act or event which took place or any situation arising before the date of 
entry into force of the Agreement except those under th e bilateral agreement for th e promotion and reciprocal 
protection of investments and its protocol (APPI) concluded between the Parties on 2 February 2002 and which 
ceased to exist when the Agreement entered into force.  WT/REG304/1 
 Page 17 
 
 
  business persons is regulated by Chapter 13.36  In case of conflict between  provisions contained in 
Chapter 11 (investment) and other chapters of the Agreement (in particular Chapter 12 on trade in 
services), the other chapters apply (Article 11.1.3). 
61. An annual review by the Parties of the provision of Chapter 11 is foreseen in order to, inter 
alia, consider the development of procedures wh ich may increase transparency, in particular in 
relation with non-conforming me asures (Article 11.14).  
62. In addition, Chapters 1, 2, and 14-20 of th e Agreement, as well as the related Annexes, 
contains provisions of general application which may also be applicable to trade in services.  
B. DENIAL OF BENEFITS  
63. Under Articles11.12 and 12.12, a Party may deny th e benefits of the relevant chapters to a 
service supplier or investor of the other Party if th at person is an enterprise owned or controlled by 
persons of a Third Party and if the service supplier or investor has no substantive business operations 
in the territory of the other Party. Additionally, a Pa rty may deny the benefits of the relevant chapters 
to a service supplier or investor, if that person is an enterprise owned or controlled by persons of the 
denying Party and the service supplier or investor  has no substantive business operations in the 
territory of the other Party. 
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
64. General obligations on trade in services are f ound in Chapter 12.  It applies to measures 
affecting cross-border trade in services taken by central, regional or local authorities of the Parties (Article 12.1.2).  However, although the definition of  cross-border trade in services in Article 12.13 
does not include mode 3, Article 12.1.4 stipulates that the Chapter's provisions on market access, 
transparency, and domestic regulations shall also appl y to measures by a Party affecting the supply of 
services by covered investments addressed in Ch apter 11.  Non-conforming measures are listed in 
Annexes I and II and contain the Parties' reserva tions in relation with market access, national 
treatment, MFN treatment, local presence, and th e nationality of managers and composition of 
governing boards (see below). 
1. Market access  
65. Article 12.5 on market access (non-discriminatory quantitative restrictions) precludes, either 
for a regional subdivision or for the Party's entire territory, measures that "(a) impose limitations on: 
(i) the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive 
service suppliers, or the requirement of an econom ic needs test; (ii) the total value of services 
transactions or assets in the form of numerical quot as or the requirement of an economic needs test; 
(iii) the total number of services operations or the total quantity of ser vices output expressed as 
designated numerical units in the form of quotas or th e requirement of an economic needs test; (iv) the 
total number of natural persons that may be employed  in a particular service sector or that a service 
supplier may employ and who are necessary for, and directly related to, the supply of a specific 
service in the form of a numerical quota or the require ment of an economic needs test, or (b) restrict 
or require a specific type of legal entity or join t venture through which a service supplier may supply 
a service ". Article 12.5 does not mention limitations on the participation of foreign capital as in paragraph 2(f) of GATS Article XVI.  
                                                      
36 Annexes 13.3-A and 13.3-B complement the disciplines on temporary movement of business 
persons. WT/REG304/1 
Page 18  
 
  66. However, in Annex II of the Agreement (non-c onforming measures), the Parties reserve their 
rights to adopt or maintain non-discriminatory qu antitative restrictions for all sectors with the 
exception of a number of sectors and sub-sectors for which they list market access limitations.  Such services sectors and sub-sectors, as well as the t ypes of market access limitations (quantitative 
restrictions corresponding to (a) to (d) of paragr aph 2 of GATS Article XVI) are specified in the 
Annex.
37  In practice, this means that market acces s is guaranteed only for the sectors and at the 
conditions specified in the Annex. This amount s to a positive listing of commitments.    
2. National and MFN treatments 
67. Under Article 11.2 and 12.3 on National Treatment, each Party shall accord to investors, 
covered investments, and (cross-border) service su ppliers of the other Party treatment no less 
favourable than that it accords, in like circumst ances, to its own investors and investments (for 
establishment, acquisition, expansion, administration,  conduct, operation and sale or other forms of 
disposal), and to its service suppliers. The Parties' reservations on non-conf orming measures related to 
national treatment, are in Annexes I and II of the Agreement. 
68. Under Articles 11.3 and 12.4 on MFN treatment, each Party shall accord to investors, covered 
investments, and (cross-border) service suppliers of the other Party treatment no less favourable than 
that it accords, in like circumstan ces, to investors and investments (for establishment, acquisition, 
expansion, administration, conduct,  operation and sale or other forms of disposal), and to service 
suppliers of non-parties to the Agreement.   
69. The Investment Chapter contains no market  access obligation along the lines of GATS 
Article XVI, but Article 12.1.4 stipulates that the Chapter's provisions on market access, transparency, 
and domestic regulations shall also apply to measu res by a Party affecting the supply of services by 
covered investments.  The Par ties' non-conforming measures relate d to MFN treatment are detailed 
below in the section "non-conforming measures".  
3. Local Presence 
70. Under Article 12.6, a Party shall not require that a service provider from the other Party 
establishes or maintain a representative office or is a resident in the Party where it provides services. 
The Parties' non-conforming measures related to lo cal presence requirements are in Annexes I and II 
of the Agreement. 
                                                      
37 In the case of Chile, the text containing the rese rvation has been included in Annex II, through an 
exchange of Notes, subsequent to the signature of the Agreement. For Chile,  the services sectors and sub-sectors 
mentioned are: legal; architectural; engineering; veterinary; services provided by midwives, nurses, 
physiotherapists and para-medical personnel; computer and related services; real estate; rental and leasing services without operators; market re search services, services incidental to agricultural, hunting and forestry; 
mining; maintenance and repair; printing and publishing; some telecommunication services; distribution; hotel 
and restaurants services; recreational, cultural and sporti ng services; road transport services; transportation of 
fuels; certain air transport services;  and services auxilia ry to all modes of transport.  For Peru, the services 
sectors and sub-sectors mentioned are: legal; architectural; engineering; veterinary; services provided by 
midwives, nurses, physiotherapists and para-medical pe rsonnel; computer and related services; research and 
development; real estate; rental and leasing services with out operators; advertising; market research services, 
services incidental to agricultural, hunting and forestry; mining; maintenance and repair; printing and 
publishing; some telecommunication services; distribution;  hotel and restaurants services; recreational, cultural 
and sporting services; certain air transport services; road transport services; and services auxiliary to all modes 
of transport.  WT/REG304/1 
 Page 19 
 
 
  4. Temporary movement of business persons38 
71. Chapter 13 of the Agreement reflects the prefer ential trading relationship between the Parties 
existing at the time of the conclusion of the Agreem ent, their mutual objective to facilitate temporary 
entry of business people under the provisions of Annexe39 13.3, according to the principle of 
reciprocity, and the need to establis h transparent criteria and procedures for temporary entry.  It also 
reflects their need to ensure border security and to protect the domestic labour force and permanent 
employment in their respective territories (Article  13.1).  Chapter 13 does not apply to measures 
related to nationality, citizenship, permanent resi dency or permanent employment. Moreover, nothing 
in Chapter 13 may be interpreted as imposing oblig ations or constituting a commitment in relation 
with other Chapters of th e Agreement (Article 13.7). 
72. Each Party commits to grant temporary entr y to business persons for the categories of 
personnel identified in Annex 13.3- A and in conformity with the modalities in Annex 13.3-B.  The 
Parties reserve their rights to maintain restrictions on entry to the territory for reasons related to health 
and public security, as well as for the protection of na tional security (Article 13.3).  The categories of 
personnel covered are: (i) business visitors for a speci fied number of sectors; (ii) traders and investors; 
(iii) personnel transferred within an enterprise; and (iv) professionals and technicians.  In most cases, 
a Party may require proof of the nationality of the app licant, details of the activity to be conducted in 
the other Party, and its international character.40  In certain cases, proof of qualification, including 
academic or technical diplomas, may be required. 
73. The Parties agree to publicize, within three mont hs from the date of entry into force of the 
Agreement, a consolidated document explaining the conditions applicable, according to their domestic 
laws, to temporary entry of business persons (Article 13.4).41 
74. A Committee on Temporary Entry is established by  the Agreement (Article 13.5).  It shall, 
inter alia , facilitate the exchange of relevant inform ation; consider the el aboration of measures 
facilitating the temporary entry of business persons; and give consider ation to the implementation and 
administration of Chapter 13.  In addition to the pr ovisions on transparency in Chapter 14, each Party 
will establish or maintain an ade quate mechanism to respond to requests from interested persons for 
the provisions of Chapter 13 (Article 13.8). 
75. In case of denial to temporarily enter the territory of a Party, the Dispute Settlement 
Mechanism in Chapter 16 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 recourses available to him/her (Article 13.6). 
5. Performance requirements 
76. Article 11.6 lists a number of prohibited perform ance requirements. Unlike other parts of the 
Chapter, the provisions on performance requirement s apply to all investments irrespective of the 
origin of investors.  Certain requirements may not be  imposed, or in certain cases benefits not granted 
subject to performance requirements by a Party in relation with the establishment, acquisition, 
expansion, administration, conduct, operation or sale, or any other forms of disposal of an investment 
                                                      
38 Business persons are nationals from a Party who participate in trade in goods or in the provision of 
services, or in investment-related activities in the other Party. 
39 Annex 13.3 is divided into two Sections. Section 13.3-A contains the rules applicable to the 
temporary entry of business persons, while Section 13.3-B summarizes the modalities applicable to business 
persons from Peru and Chile. 
40 Proof that the main source of revenue and the regi stered place of such an ac tivity are located outside 
the Party concerned may be required only in the case of Business Visitors. 
41 Parties are currently working on this do cument but it has not been published yet. WT/REG304/1 
Page 20  
 
  in its territory.  In particular, it is prohibited fo r a Party to require to (a) export a given level or 
percentage of goods or services;  (b) achieve a given level or percentage  of domestic content; 
(c) acquire, use or accord a preference to goods in its territory, or purchase goods from persons in its 
territory;  (d) relate in any way the volume or value of imports to the volume or value of exports or to 
the amount of foreign exchange inflows associated with  such investment;  (e) restrict in its territory 
sales of goods or services that such investment pr oduce or supplies by relating such sales in any way 
to the volume or value of its exports or forei gn exchange earnings;  (f) transfer a particular 
technology, production process or ot her knowledge owned by the investor;  or (g) act as the sole 
supplier from the territory of the Party of the go ods it produces or services it supplies to a specific 
regional or world market.   
77. Parties may apply exceptions estab lished accordingly in paragraphs 6.3 and 6.4.  For example, 
qualification requirements for services related to export promotion and foreign aid programmes are 
authorized as well as requirements to be fulfi lled to benefit from preferential duty. Also, 
paragraph 3(c) of Article 11.6 clarifies that th e performance requirements obligation does not prevent 
a Party from adopting or maintaining environmenta l and other measures necessary to protect human, 
animal, or plant life or health, or for the conserva tion of exhaustible natural resources, provided that 
such measures are not applied in an arbitrary or unjustifiable manner, and do not constitute a 
disguised restriction on investment or international tr ade.  Paragraph 3(a) of Article 11.6 clarifies that 
the performance requirements obligation does not pr event Parties from conditioning the granting of 
advantages on compliance with requirements to locat e production, supply a service, train or employ 
workers, construct or expand particular facilities, or carry out research and development, in their 
territory.  The Parties' non-conforming measures rela ted to performance requirements are contained in 
Annexes I and II of the Agreement. 
6. Senior managers and board of directors 
78. Article 11.7 prohibits restrictions concerning th e nationality of senior managers and the Board 
of Directors.  However, a Party may require that a majority of the board of directors be of a particular 
nationality or have residency in the territory of the Party, provided that the requirement does not 
materially impair the ability of the investor to exercise control over its investment.  The Parties' non-conforming measures on the nationality of senior managers and the board of directors are in 
Annexes I and II of the Agreement. 
7. Other provisions on investment 
79. Article 11.4 (minimum standard of treatment) binds Parties to accord  covered investments 
treatment in accordance with customary international law
42, including fair and equitable treatment43 
and full protection and security.44   
80. Article 11.10 contains provis ions regarding expropriation45 and compensation, whilst money 
transfers related to investments46 are the subject of Article 11.9.  Losses, resulting from armed conflict 
                                                      
42 Annex 11-A provides the Parties' understanding of "customary international law". 
43 "fair and equitable treatment" includes the obligation not to deny justice in criminal, civil or 
administrative adjudicatory proceeding s in accordance with the principle of due pro cess embodied in the 
principal legal systems of the world. 
44 "full protection and security" requires each Party to provide the level of police protection that is 
required by customary international law. 
45 Elements of interpretation of situation of expropriation are contained in Annex 11-D. 
46 According to Annex 11-C on Payments and Transfers,  the ability of the Parties is reserved to ensure 
the stability of the currency and the normal functioning of internal and external payments, the regulation of the amount of money and credit in circulation, the execution of the operations of credit and foreign exchange, as 
well as the adoption of regulations governing monetary, credit, financial and foreign exchange.  WT/REG304/1 
 Page 21 
 
 
  or civil strife, suffered by investors or investments from one Party in the territory of the other Party 
are subject to restitution or compensation, in the specific cases identified in Article 11.5.  
D. LIBERALIZATION OF TRADE IN SERVICES AND INVESTMENT  
81. Liberalization modalities for Chapters 11 and 12 follow a "negative list" approach which 
assumes that all sectors or sub-sectors covered by th ese chapters are liberalized, in terms of the 
disciplines of national treatment, market acce ss, local presence, MFN, senior management, 
performance requirements, unless otherwise provi ded in the Parties' non-conforming measures 
(described below).  
82. The Parties agreed to meet six months after the entry into force of the Agreement to negotiate 
additional commitments on non-discrim inatory quantitative restrictions with a view to maintaining the 
general balance of rights and obligations (Article 12.7.3). 
83. The "negative list" approach means that th e Parties increase the coverage of committed 
sectors as compared to their GATS specific commitmen ts particularly in the sectors for which Peru 
and/or Chile had not made specific commitm ents under GATS or where they had introduced 
substantial limitations to market access and/or na tional treatment. The level of preferential access 
and/or treatment for trade in services depends however  also upon the coverage of the reservations in 
the Parties' lists of non-conforming measures. 
84. In Tables IV.1 and IV.2 below, the Secretaria t makes an attempt to compare the Parties' 
specific commitments, by main sectors and subsec tors, as contained in the Agreement, and those 
made by the Parties in the context of th eir respective GATS schedules. In both cases, the 
commitments are summarized. Because GATS and RTA services commitments are often differently 
structured, and particularly in cases where RTA commitments follow a negative list approach, a 
comparison of the degrees of liberalization achieved in both remains difficult. The Tables below are indicative and should be used in conjunction with the Parties' Schedules annexed to the Agreement.  
85. These Tables are based on the services sectoral classification list.
47  Improvements in existing 
GATS commitments are either a reduction of the lim itations applicable to market access and/or 
national treatment, a relaxation of the form of es tablishment under mode 3, further sub-sectors in 
which commitments are made, and/or additional co mmitments. Horizontal limitations recorded in 
GATS Schedules of Specific Commitments and reser vations covering all sectors registered in 
Annexes 1 or 2 of the Agreement are not captured in the following Tables but are summarized below. 
Mode 4 commitments are also excluded from the Tables.   
1. Chile's liberalization commitments 
86. 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 telecom and tourism.   
87. Chile's GATS MFN exemptions cover measures es tablishing dispute settlement procedures  
in bilateral treaties on the protection of investment;  reciprocal measures related to maritime transport 
- in particular freight;  national treatment for s uppliers from signatories of the 1977 International Land 
Transport Convention48;  and national treatment for certain co-produced cinematographic works.  
Under the Agreement, Chile takes MFN reservations on printing, publishing and associated industries, 
as well as certain communication services (telecommunication, press agencies, and radio broadcasting), subject to authorizations.  MFN reservations are also made in fisheries-related services, 
                                                      
47 MTN.GNS/W/120. 
48 Argentina, Bolivia, Brazil, Paraguay, Peru, and Uruguay. WT/REG304/1 
Page 22  
 
  legal services and transport services (by air, road, an d maritime), also subject to authorizations and 
licences.  Moreover, MFN-related general reservati ons are registered for future measures on land 
ownership in the coastal and agricultural areas, and for existing and future measures in application of 
treaties granting preferential treatment on aviation, fishing and maritime services, including salvage.  
A general reservation is also registered for pr eferences granted to economically or socially 
disadvantaged minorities as well as to the original et hnic groups.  Chile also has MFN reservations for 
certain communication services, education, fishing re lated services, social services, environmental 
services, and international land transport. 
88. Under the GATS, Chile's horizontal limitations cover essentially mode 3 (the other modes not 
being covered in most cases) with limitations on the form and modalities applicable to commercial 
presence and foreign investment, in cluding on 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.  National treatment limitations are also contained in Chile's GATS Specific commitments in relation with land ownership in border zones. 
Under the Agreement, Chile recorded horizontal limitations, covering national treatment and local 
presence in addition to the above-mentioned MFN reser vations, with regard to acquisition of land, 
which is the property of the State and for real estat e situated in "frontier zones" areas.  A general 
reservation, applicable for all sectors, requires of  companies established in Chile and employing over 
25 persons that at least 85% of their staff are Chilean staff
49 (the competent authorities may however 
determine that this 85% does not apply for certain tec hnicians).  Horizontal reservations related to the 
adoption of measures establishing righ ts or preferences to original ethnic groups, and the protection of 
minority groups are made for national treatment , local presence, performance requirements, and 
Senior Management and composition of the Board . 
89. Table IV.1 below summarizes Chile's specific commitments under the Agreement, by main 
sectors and subsectors and compares them with its GATS schedule. A more detailed examination of Chile's sector-specific non-conforming measures th at are different from its GATS commitments is 
contained in the following section. This Table must be read in conjunction with the description of the 
sector specific commitments provided below.  
Table IV.1 
Chile:  comparison between the GATS and Agreement specific commitments in trade in services (excluding mode 4) 
Sectors GATS RTA 
1. BUSINESS SERVICES   
A. Professional services  Similar 
B. Computer and related services  - New  
C. Research and development - New  
D. Real estate - New  
E. Rental/Leasing services without operators  Improved 
F. Other  Improved 
2. COMMUNICATION SERVICES   
A. Postal - New  
B. Courier - New  
C. Telecommunication   Similar 
D. Audiovisual - New  
E. Other - New  
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES - New  
4. DISTRIBUTION SERVICES - New  
5. EDUCATION SERVICES - New  
6. ENVIRONMENTAL SERVICES - New  
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services  Excluded  
B. Banking and other financial services  Excluded  
8. HEALTH RELATED AND SOCIAL SERVICES - New  
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants  Improved 
Table IV.1 (Cont'd) 
                                                      
49 A similar reservation may also be applicable to local presence.  WT/REG304/1 
 Page 23 
 
 
  Sectors GATS RTA 
B. Travel agencies and tour operators  Improved 
C. Tourist guides  Improved 
D. Other - New  
10. RECREATIONAL, CU LTURAL AND SPORTING SERVICES - New  
11. TRANSPORT SERVICES   
A. Maritime - New  
B. Internal waterways - New  
C. Air   Improved 
D. Space - New  
E. Rail  - New  
F. Road - New  
G. Pipeline - New  
H. Services auxiliary to all modes of transport - New  
I. Other - New  
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New  
Note: 
√: Commitments in the GATS schedule (Full or partial, with or without limitations). 
-: No commitments. 
New: New commitments made under the Agreement (Full or partia l, with or without limitations).  "New" could always be 
seen as "improved". 
Improved: Overall improved commitments made under the Agreement compared to those under the GATS. 
Similar: Similar commitments made under the Agreement as those under the GATS (though possibly with limited 
improvements and/or limited additional reservations). 
 
Source :  Draft Consolidated GATS Schedule of Specific Commitm ents (S/DCS/W/CHL), prepared by the Secretariat 
(in 2003).  The comparison does not cove r mode 4 commitments a nd therefore only addresses modes 1-3, market 
access and national treatment, and additional commitments. 
 
2. Peru's liberalization commitments 
90. In its GATS schedule, Peru has made commitments in 42 out of 155 services sectors, 
essentially on mode 3, with some commitments on modes 1, 2, and - to a limited extent - 4 in telecommunications, and some insurance subsectors.   
91. Peru's GATS MFN exemptions cover measur es implementing its reciprocal labour 
agreements or on dual nationality;  land and sea tran sport measures taken in the Andean context;  land 
transport measures implementing the Convention on In ternational Land Transport, the law promoting 
Latin American artists interpreting Latin American  themes and certain measures designed to ensure 
reciprocity for certain financial intermediation services. Under the Agreement, Peru takes MFN 
reservations on radio transmission services within border areas, subject to authorizations.  MFN-
related general reservations are registered for future measures on all sectors in relation to the 
participation of foreigners in State-owned enterp rises, for the protection of indigenous communities 
and minorities, as well as in matters related to fishi ng, cultural productions, a udio-visual, printing and 
publishing, the musical industry, performing and visual arts, handicraft, social services, telecommunication services, education, and international la nd transportation. 
92. Under the GATS, Peru's horizontal limitations cover mainly modes 3 and 4 (the 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 Peru, as well as, inter alia, limita tions of up to 20% on foreigners employed in 
enterprises established through fo reign investment. Under the Agreement, Peru has horizontal 
limitations, covering national treatment and local presence in addition to the above-mentioned MFN 
reservations, with regard to land ownership in bord er areas. A general limitation, applicable for all 
sectors, requires that companies established in Peru employ at least 80% of Peruvian staff, representing at least 70% of the total payroll of the company. Horizontal reservations relate to privatisation measures, as well as the adoption of  measures establishing rights or preferences to 
original ethnic groups or protecting minority groups. WT/REG304/1 
Page 24  
 
  93. Table IV.2 below summarizes Peru's specific commitments under the Agreement, by main 
sectors and subsectors and compares them with its GATS schedule. A more detailed examination of Peru's sector-specific non-conforming measures and different from its GATS commitments is 
contained in the following section. This Table must be read in conjunction with the description of the 
sector specific commitments provided below. 
Table IV.2 
Peru:  comparison between the GATS and the Agreement specif ic commitments in trade in services (excluding mode 4) 
Sectors GATS RTA 
1. BUSINESS SERVICES   
A. Professional services  Similar 
B. Computer and related services  - New 
C. Research and development - New 
D. Real estate - New 
E. Rental/Leasing services without operators  Improved 
F. Other  Improved 
2. COMMUNICATION SERVICES   
A. Postal - New 
B. Courier - New 
C. Telecommunication   Improved 
D. Audiovisual - New 
E. Other  Improved 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES - New 
4. DISTRIBUTION SERVICES  Improved 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES - New 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services  Excluded  
B. Banking and other financial services  Excluded  
8. HEALTH RELATED AND SOCIAL SERVICES - New 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants  Improved 
B. Travel agencies and tour operators  Improved 
C. Tourist guides - New 
D. Other - New 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES  Improved 
11. TRANSPORT SERVICES   
A. Maritime  Similar 
B. Internal waterways  Similar 
C. Air  - New 
D. Space - New 
E. Rail  - New 
F. Road - New 
G. Pipeline - New 
H. Services auxiliary to all modes of transport - New 
I. Other - New 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New 
Note: 
√: Commitments in the GATS schedule (Full or partial, with or without limitations). 
-: No commitments. 
New: New commitments made under the Agreement (Full or partia l, with or without limitati ons). "New" could always be 
seen as "improved". 
Improved: Overall improved commitments made under the Agreement compared to those under the GATS. 
Similar: The comparison does not cover mode 4 commitment s and therefore only addresses modes 1-3, market access and 
national treatment, and additional commitments. 
 
Source :  Draft Consolidated GATS Schedule of Specific Commitm ents (S/DCS/W/PER), prepared by the Secretariat 
(in 2003).  The comparison only concerns modes 1-3, ma rket access and national tr eatment, and additional 
commitments; it does not concer n the issues of mode 4. 
 
3. Sector specific commitments on trade in services 
94. As the Parties have chosen a ne gative list approach, and as less than one third of the services 
sectors and subsectors had been covered, by both Parties, in their specific commitments under the 
GATS, the overall sectoral coverage in the Agreement is, for both Parties, greater than in the GATS.    WT/REG304/1 
 Page 25 
 
 
  The rest of this section attempts to capture the ma in changes, by services sectors, in the Agreement 
compared with the Parties' GATS commitments.  
95. Below, the Secretariat makes an attempt to hi ghlight some of the main differences between 
sector specific commitments contained in the Agreemen t, and those made by the Parties in the context 
of their respective GATS schedules. Structural di fferences between the GATS and the part of the 
Agreement addressing trade in services have to be ta ken into account when considering this section of 
the factual presentation. 
(a) Business services 
96. Chile and Peru build on their GATS commitments (limited only to a few business services 
subsectors for both Parties) and enlarge the scope to cover subsectors such as computer and related 
services, research and development services, an d real estate (subject to the above-mentioned 
horizontal limitations for the latter).  Chile has so me reservations, mainly for existing measures, in 
legal services;  accounting; auditing and bo okkeeping services (both covered under the GATS50); 
research services in natural science s and on social sciences and humanities; services incidental to 
hunting, fishing51, mining, and energy distribution; investigation and security services; as well as 
printing and publishing52 (all the latter subsectors not being covered by Chile's GATS specific 
commitments).  Peru has reservations, also mainly covering existing measures, on legal services; auditing and bookkeeping services; architectural serv ices (mirroring limitations on mode 3 in Peru's 
list of GATS specific commitments);  R&D services  in social sciences and humanities; advertising 
services (covered under Peru's GATS specific commitments
53), services incidental to fishing (for 
future measures), and to mining; as well as in investigation and security services. 
(b) Communication services 
97. Under the Agreement, postal and courier servi ces (unbound for both Parties under the GATS) 
are covered without reservation.  Telecommunication services (partly committed by both Parties in the GATS) are subject to reservations by both Part ies under the Agreement.  Under the Agreement, 
Chile reproduces its GATS limitations for prior authorization and concessions.  However, the 
reservation to maintain its rights to take futu re measures on basic telecommunications in the 
Agreement does not always match, and potentially go es further than, Chile's limitations in the GATS. 
Peru takes a reservation for call-back services.  Au dio-visual services (not covered by the Parties 
under the GATS) are covered, by both Parties, with so me limitations.  In particular, for both Parties, 
future measures are reserved, unde r a "cultural" limitation applicable for production, radio and 
television services and distribution services.  
(c) Construction and related engineering services 
98. No commitments were made by the Parties under the GATS.  Under the Agreement, Chile 
and Peru cover the sector albeit with a r eservation by Chile for future measures.  
(d) Distribution services 
99. Peru has included this sector under the GA TS.  Under the Agreement, it introduces new 
limitations for future measures for wholesale trade services. 
                                                      
50 Chile's GATS specific commitments are partly mirro red under the Agreement, though, in the case of 
auditors new restrictions are added. 
51 For fishing, a reservation is also made for future measures. 
52 A general "cultural" reservation for existing and futu re measures is applicable to the sale of books. 
53 Peru's reservations in the Agreement do not match those in its list of GATS specific commitments. WT/REG304/1 
Page 26  
 
  (e) Educational services 
100. Neither Party has made commitments under the GATS and registered a reservation for future 
measures in the Agreement.  
(f) Environmental services 
101. Neither Party took commitments under the GATS.  Under the Agreement, they registered a 
reservation for future measures for sewage services.  
(g) Financial services 
102. The financial services sector (bound with li mitations by both Parties under GATS) is 
excluded from the coverage of the Agreement.  Ne vertheless, Chile reserves the right to adopt or 
maintain any measure with respect to the acquisition,  sale, or other disposal, by nationals of Peru, of 
bonds, treasury bills or other debt instrument issu ed by the Central Bank or the Chilean Government. 
(h) Health related and social services 
103. Under the Agreement, this sector (for which there are no GATS commitments by the Parties), 
is fully covered.  Under the Agreement, Peru an d Chile have registered a reservation for future 
measures related to activities related to social services , though the coverage of  which under this sector 
is debatable. 
(i) Tourism and travel related services 
104. Under the GATS, Chile has fully covered the sector , but only for mode 3, and Peru has partly 
covered it.  Under the Agreement, the Parties make full commitments, without any limitations. 
(j) Recreational, cultural and sporting services 
105. Both Parties have some commitments under th e GATS.  Under the Agreement, the whole 
sector is covered through the negative list approach , but Chile reserves existing measures for news 
agency services, and sporting and other recreationa l services and Peru has reservations on existing 
measures for entertainment services and sporting a nd other recreational services.  Moreover, it 
reserves futures measures related to performing and visual arts (entertainment services).  
(k) Transport services 
106. Chile has only included certain services auxiliary  to air transport under the GATS.  Under the 
Agreement, it has reservations on existing measures  related to passenger a nd freight transportation 
(for maritime transport services and road transport services), on transport of fuels, and on some services auxiliary to all modes of transport (freight and other).  Chile also has reservations for future 
measures on certain road transport services.  On air transport services, reservations by both Parties cover aspects that are not under the coverage of th e GATS (investment, wet leasing).  Peru's specific 
commitments in the GATS are limited to passenger transportation (for maritime transport services and 
internal waterways transport).  Under the Agreement, by virtue of the negative list approach, it covers 
the entire sector, with reservations on passenger transportation.  While referring to the same 
legislation, certain measures are described diffe rently than in Peru's list of GATS specific 
commitments, making a comparison difficult.  Peru also reserves measures in freight transportation 
(for maritime transport services, and road transpor t), support services for road transport services, and 
certain services auxiliary to all modes of transport.  WT/REG304/1 
 Page 27 
 
 
  (l) Other services not included elsewhere  
107. No reservations are made by the Parties for other services not included elsewhere (as in the 
services sectoral classification list). 
E. REGULATORY PROVISIONS  
1. Domestic regulation 
108. Chapter 12 on Cross Border Trade in Services  contains provisions on domestic regulation 
(12.9) that also apply to covere d investment in services, as per Artic le 12.1.4.  Article 12.9 contains 
rules governing the treatment of applications fo r authorization so that measures relating to 
qualification requirements and procedures, licensing requirements, and technical standards, do not 
constitute unnecessary barriers to trade.  The relevant  criteria for such measures are the same as those 
in the GATS Article VI:4 negotiating mandate (transparency and objectivity, not unnecessarily 
burdensome, etc.) which, in turn, are implemented on a provisional basis, in the form of a qualified 
standstill, under GATS Article VI:5.  Article 12.9 foresees an amendment to  the Agreement, after 
consultations between the Parties, to implement the results of GATS Article VI:4 negotiations.   
109. Annex 12.10.5 establishes that the Parties, through a Working Group, will work towards a 
temporary licensing of professionals. The Working Gr oup shall meet one year after the entry into 
force of the Agreement to elaborate a working plan . The Annex also contains the Parties' commitment 
to encourage the relevant bodies to develop procedures for the licensing of professionals. 
2. Recognition 
110. Article 12.10 contains provisions on the r ecognition of standards or criteria for the 
authorization, licensing, and certification of services  suppliers, in line with GATS Article VII.  Such 
recognition, which may be achieved through harm onization or otherwise, may be based on an 
agreement or arrangement with the other Party or may be accorded autonomously.  Article 12.10 
states that where a Party recognizes, autonomously or by agreement or arrangement, the education or experience obtained, requirements met, or licenses or certifications granted in the territory of a 
non-Party, that Party is not required to accord su ch recognition to the education or experience 
obtained, requirements met, or licenses or certifications  granted in the territory of the other Party.  A 
Party that is party to an existing or future ag reement or arrangement on mutual recognition, shall 
afford adequate opportunity for the other Party, if the other Party is interested, to negotiate accession 
to such an agreement or arrangement or to ne gotiate a comparable one.  Where a Party accords 
recognition autonomously, it shall afford the other Party adequate opportunity to demonstrate that 
education, experience, licenses, or certifications obt ained, or requirements met in that other Party’s 
territory should be recognized.  A Party may not accord recognition in a manner which would 
constitute a means of discrimination between countries in the application of its standards or criteria 
for the authorization, licensing, or certification of services suppliers, or a disguised restriction on trade 
in services.  In addition, Annex 12.10.5 (Professiona l Services see above) applies to measures adopted 
or maintained by a Party for the licensing or certification of professional service suppliers.  
3. Subsidies 
111. Chapter 12 does not apply to subsidies or grants  provided by a Party or a State enterprise, 
including government-supported loans, guarantees and insurance (Article 12.1.3d).  The Parties will 
exchange information on all subsidies and loans whic h may distort trade in services.  Additionally, if 
the multilateral negotiations on Article XV.2 of th e GATS enter into force between the Parties, 
Article 12.2 of the Agreement, which deals w ith subsidies, will be amended as necessary.  WT/REG304/1 
Page 28  
 
  4. Transparency  
112. Article 12.8 calls for transparency to be ex ercised by the Parties in addition to the 
mechanisms established under Chapter 14 of the Agreement on transparency (see below).   
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. T
RANSPARENCY  
113. Chapter 14 of the Agreement refers to transpar ency.  The provisions address the transparent 
administration of laws and regulations include: the establishment of contact points (Article 14.1); the 
publication of laws, regulations, and procedures and administrative rulings of general application 
relating to matters covered by the Agreement (Artic le 14.2); notification and provision of information 
to the other Party (Article 14.3); due process ob ligations regarding administrative proceedings 
(Article 14.4); and review and appeals (Article 14.5).  The Agreement also contains provisions 
protecting confidentiality (Article 19.6) and lim iting disclosure of information (Article 19.5). 
114. Moreover, provisions in the Agreement deali ng specifically with customs procedures and 
trade facilitation (Chapter 5), safeguards (Chapter  6), competition policy (Chapter 8), sanitary and 
phytosanitary measures (Chapter 9), technical barrier s to trade (Chapter 10), investment (Chapter 11), 
cross border trade in services, including temporary entry of business persons (Chapters 12 and 13), 
also contain transparency obligations. 
B. EXCEPTIONS  
115. Chapter 17 of the Agreement st ates the exceptions applicable when measures are taken in 
relation with the Agreement.  The text make direct references to the Parties' rights and obligations in 
respect of general exceptions which are governed  by Article XX of the GATT 1994 (for trade in 
goods54), by Article XIV of the GATS (for trade in services55) and in respect of security exceptions, 
through the incorporation, in Article 17.2, of a te xt similar to that of Articles XXI of the GATT 1994 
and XIVbis of the GATS.56  The GATT 1994 and GATS Articles mentioned in Chapter 17 
(Article 17.1) are incorporated into and made part  of the Agreement.  According to Article 17.3, 
measures related to taxation are excluded from the coverage of the Agreement, except when 
taxation-related measures may conflict with the commi tment made, in the Agreement, by the Parties 
in relation to national treatment (Article 3.1 and 3.2 - for trade in goods; and Article 11.2 and 12.3 - 
for investment and trade in ser vices), with export duties in th e context of the programme of 
liberalization (Article 3.2.12), or with MFN treatme nt (Articles 11.3 and 12.4 - for investment and 
trade in services).  Moreover, in case of conflic t between the Agreement and a taxation agreement 
concluded between the Parties, the latter will preva il, unless otherwise stated in the Agreement.   
C. ACCESSION AND TERMINATION  
116. In conformity with the Montevideo Treaty of 1980, the Agreement is open to accession of 
countries members of LAIA, through negotiation.  Eventual accessions would be formalized through 
the establishment of additional protocols (Article 20. 3).  The Parties shall promote the convergence of 
the Agreement with the other integration agreements  concluded by the Latin American countries, in 
conformity with the mechanisms established by the Montevideo Treaty (Article 20.4).  
                                                      
54 A reference is also made, in Article 3.2, to Article  50 of the Montevideo Treaty, which, in substance, 
mirrors Article XX of the GATT 1994. 
55 Direct applicability to Chapter 11 on investment is not specifically mentioned. 
56 A direct reference to Article XXI of the GATT 1994 is also made in the text in Article 3.2 
(programme of liberalization).  WT/REG304/1 
 Page 29 
 
 
  117. The disciplines governing termination are containe d in Article 20.7 and foresee that the rights 
and obligations contracted by a Pa rty notifying its intention to den ounce the Agreement to the General 
Secretariat of LAIA will cease to exist within 180 days, except for the treatment applicable to goods 
and services, which will cease to exist at the end of a one-year delay. 
D. GOVERNMENT PROCUREMENT  
118. Through the Administrative Commission established by the Agreement, the Parties will, 
during the first year following the entry into for ce of the Agreement, consider the modalities of 
negotiations between them on governme nt procurement (Article 20.5.1). 
E. INTELLECTUAL PROPERTY RIGHTS  
119. The Parties commit to ensure an appropriate protection of intellectual property rights, 
consistent with their national legislations, and to ensure that such protection does not constitute an 
unjustified obstacle to bilateral trade (Article 19.7).  
120. Through an exchange of letters (2007), Chile and Pe ru agreed that, at the latest one year after 
the entry into force of the Agre ement, they would consider the adoption of efficient measures and 
mechanisms with a view to safeguard and respect th e rights related to biologi cal and genetic resources 
as well as to traditional knowledge. The Parties also recognized the past, present and future 
contribution of indigenous peoples to developm ent and conservation of biological and genetic 
resources and of its natural derivatives, and in gene ral the contribution of traditional knowledge to the 
culture, and the economic and social  development of their nations. 
F. OTHERS  
1. Competition 
121. Chapter 8 of the Agreement contains specific provisions with regard to competition policy, 
designated monopolies and state enterprises.  These  provisions may however not supersede any other 
disciplines contained in another Chapte r of the Agreement (Article 8.13). 
122. The Parties agree to maintain comprehensive co mpetition laws with a view to ensuring that 
the benefits of the process of liberalization of trade in goods, services and investments are not 
undermined (Article 8.2).  They permit each other to prosecute cross-border anti-competitive practices 
generated in one Party's territory with effect in th e other Party's territory (Article 8.3) and commit to 
establish co-operation and coordination between thei r competent authorities (Articles 8.4 and 8.5). 
Notwithstanding the coordination between agencies, th e Parties remain autonomous in their decision 
making. They shall co-operate on issues of comp etition law enforcement, including notification of 
cases that affect the important interests of anothe r Party (Article 8.6), c onsultation (Article 8.7), 
exchange of information relating to the enforcem ent of each Party's competition laws and policies 
(Article 8.8), and technical assistance (Article 8.9).  A working group comprising representatives of 
each Party shall endeavour to promote greater  understanding, communication, and co-operation 
between the Parties on matters covered by Chapter 8. 
123. Article 8.10 contains disciplines on public enterp rises and enterprises entrusted with special 
rights or exclusive rights, including designated monopo lies. It also establishes mechanisms to ensure 
transparency, monitoring and review of competition -related matters. Measures ta ken in the context of 
government procurements are not  covered however by these disciplines and competition-related 
matters are excluded from the Agreement's dispute settlement mechanism (Articles 8.10 and 8.12).   
 WT/REG304/1 
Page 30  
 
  2. Public pricing policies 
124. Recognizing that public pricing policies may distor t their bilateral trade, the Parties agree not 
to use policies that would, directly or indirectly , amount to a nullification of the advantages derived 
from the Agreement (Article 19.8). 
3. Co-operation and Trade Promotion 
125. Chapter 18 of the Agreement
57 contains the Parties' commitments to promote co-operation in 
areas such as, inter alia, economics, trade policies and techniques, financial policies, monetary and 
public finance, customs matters, sanitary and Ph ytosanitary standards, energy, transport and 
communication, as well as modern technologies.  The participation of the private sector is encouraged (Article 18.1).  Similarly, joint actions in rela tion to trade promotion are encouraged between the 
Parties (Article 18.2).  The Parties also undertake to promote a coordinated action in international 
economic fora in relation to the industrialized countries, aimed at improving access for their products to major international markets (Article 19.9). 
G. I
NSTITUTIONAL FRAMEWORK  
126. Chapter 15 of the Agreement covers ins titutional arrangements and establishes an 
Administrative Commission to ensure the proper op eration of the Agreement and to supervise its 
implementation and application.  It also superv ises the work of all the Committees or Working 
Groups established by the Agreement, and takes no te of the reports of the Joint Committee for 
co-operation in migration and labour matters.58  The Commission held its first meeting in June 2010 
and will hold its meeting duri ng the second semester of 2012. 
127. In addition to the Commission and Committees and Working Groups established by the 
Agreement, Coordinators have been designated by Article 15.2 to jointly support the work of the 
Commission and to ensure the follow up of decisions it may adopt.  
H. DISPUTE SETTLEMENT  
128. Chapter 16 sets out the procedures and institu tional arrangements that apply in cases of 
disputes between the Parties regarding questions of interpretation or application of the Agreement and 
the consistency of a Party's actions with its oblig ations under the Agreement;  or a benefit a Party 
could reasonably have expected to a ccrue to it, under Chapters 3 (Trade  in goods), 4 (Rules of origin), 
5 (Customs procedures and trade facilitation), 10 (Technical Barriers to Trade), and 12 (Cross-border 
trade in services).  Except as otherwise provided,  Chapter 16 applies to all matters under the 
Agreement.  Chapter 16 may not, however, be invoked with respect to Chapters 8 (Competition 
policy) and 13 (Temporary Entry of Business Persons).   
129. Article 16.3 provides for "forum shopping" as we ll as "forum exclusion" clauses for matters 
falling under the Agreement, the WTO Agreements a nd any other agreement to which both Parties are 
party.  Accordingly, a Party shall be considered to have selected a forum when it has requested the 
establishment of either a panel (established under the WTO) or an Arbitral Tribunal (established 
under the Agreement). 
130. The dispute settlement mechanism under the Agreem ent is based on and largely similar to the 
WTO Dispute Settlement Understanding, with some shorter deadlines. 
                                                      
57 Text unchanged from the corresponding Chapter of the ACE No. 38. 
58 Established in the Memorandum of understanding on co-operation in migration and labour matters 
adopted by the Parties on 22 August 2006.  WT/REG304/1 
 Page 31 
 
 
  131. Chapter 16 provides for details steps in the pro cess for dispute resolution, the salient features 
of which are described in Chart V.1 below.  If the Parties fail to find a solution to a disputed matter 
through consultations, they may refer the case to th e Administrative Commission.  Subsequently, the 
case may be referred by a Party to an Arbitral Tribun al, composed of three arbitrators chosen by the 
Parties, or in case they are unable to agree, desi gnated by the Secretary General of the LAIA.  The 
Arbitral Tribunal may decide to request scientific information and technical advice from experts, as 
necessary. Majority voting and publication of dissen ting opinions are foreseen in cases the Tribunal 
may not decide by consensus.   
132. An Interim report shall be issued to the Parties, in principle, within 90 days (60 days in urgent 
cases) followed by a final ruling  within 30 days (o r 15 days in urgent cases).  The final report which 
is binding on the Parties shall be made public with in 15 days after it has been transmitted to them. 
133. Unless the Parties agree otherwise, the arbitration ruling shall be complied with immediately.  
In cases when this is not possible, compliance shall b ecome effective at the latest within 20 days.  In 
case of disagreement, the original Tribunal shall de termine the length of the reasonable period of time 
for compliance.  Where there is a disagreement between the Parties on the consistency of the 
compliance measures with the ruling the original Tri bunal shall rule, within 60 days from the date the 
matter has been submitted to it. A prolongation of up  to 30 additional days may be requested by the 
Tribunal. 
134. In case of non-compliance, or when there is di sagreement about the compliance of a measure, 
the complaining Party is entitled, upon notifica tion, to temporarily suspend concessions.  In 
suspending obligations, the complaining Party may choo se to increase its tariff rates to the MFN rate 
on a volume of trade to be determined in a way th at the volume of trade multiplied by the increase of 
tariff rates equals the value of the nullification or impairment caused by the violation.  If the Party 
complained against considers that the level of su spension is not equivalent to the nullification or 
impairment caused by the violation, it may request the original Tribunal to rule on the matter.  A 
review of measures taken to comply after the suspen sion of obligations is conducted, by the original 
Tribunal, 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.  The Parties may 
also negotiate compensation until compliance is fully achieved unless they agree on a mutually 
acceptable settlement.  The case is closed when both Parties agree that appropriate measures have 
been taken to ensure compliance with the pane l ruling or through mutually agreed settlement. 
135. None of the Parties may, in its national legisla tion, authorize a private party to take a legal 
action alleging that a measure taken by the othe r Party is incompatible with the Agreement. 
136. Chart V.1 provides a synopsis of  the dispute settlement process. WT/REG304/1 
Page 32  
 
  Chart V.1 
Dispute Settlement Mechanism  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 Request for consultations and 
consultations (Art. 16.4) 
Matter addressed to the 
Administrative Commission and 
Consideration (Art. 16.5) 
Request for the establishment of an 
Arbitral Tribunal (Art. 16.6) 
Composition (Art. 16.7) 
Issuance of Final report of the 
Arbitral Tribunal (Art. 16.12) Preliminary report (Art. 16.11) 
Compliance / Implementation        
(Art. 16.13) Divergences about compliance or 
Non-compliance (Art. 16.14) 
Compensation (Art. 16.15) 
Suspension of benefits          
(Art. 16.15) 
Compliance Review (Art. 16.16)  
 
 
 
137. In addition, Chapter 11, Section B establishes an investor-state dispute settlement, which 
provides investors of a Party with the ability to subm it to arbitration a claim that the other Party has 
breached investment obligations.   
I. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
138. The Agreement modifies and substitutes the ACE No. 38, its annexes, appendices, protocols, 
and instruments subscribed by virtue thereof (Article 1.1.2). 
139. The Parties confirm the rights and obligations between them in conformity with the WTO 
Agreement, the Montevideo Treaty of 1980, as well as other international ag reement and the regional 
or sub regional integration agreements they are pa rty to.  In case of conflict between the Agreement 
and the other agreements, the provisions of the Ag reement prevail to the extent of the conflict 
(Article 19.2.2).  However, the Treaty of Lima of 1929 and its complementary Protocol, the Executing 
Act of 13 November 1999 and its regulation,  as well as the Agreement between the 
"Empresa Protuaria Arica " and the " Empresa Nacional de Puertos S.A " from 1999, and the 
Inter-institutional Agreement on Dispute Settle ment of 1999 prevail over the Agreement 
(Article 19.2.3).  WT/REG304/1 
 Page 33 
 
 
  140. The Parties' regional trade agreements in for ce (both notified and non-notified) are listed in 
Table V.1.   
Table V.1 
Chile and Peru:  Participation in other RTAs (not ified and non-notified in force), as of August 2012* 
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
CHILE  
Turkey 01.03.11 Goods 2011 GATT Art. XXIV 
Guatemala (Central America) 23.03.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Colombia 08.05.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Australia 06.03.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Honduras (Central America) 19.07.08 Goods & Services 2011  GATT Art. XXIV & GATS Art. V 
Panama 07.03.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Japan 03.09.07 Goods & Services 2007  GATT Art. XXIV & GATS Art. V 
India 17.08.07 Goods 2009 Enabling Clause 
China 01.10.06 
01.08.10 Goods 
Services 2007 
2010 GATT Art. XXIV 
GATS Art. V 
Brunei, New Zealand, Singapore 
(Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European Union 01.03.05 
01.02.03 Services 
Goods 2005 
2004 GATS Art. V 
GATT Art. XXIV 
EFTA 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & Servi ces 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V 
El Salvador (Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica (Central America) 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & Services 1997  GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Malaysia 18.04.12 Goods Not notified  
Ecuador (AAP.CE N°65) 25.01.10 Goods Not notified  
Cuba (AAP.CE N°42) 27.06.08 Goods Not notified  
MERCOSUR (AAP.CE N°35) 01.10.96 Goods Not notified  
Bolivia (AAP.CE N°22) 06.04.93 Goods Not notified  
Venezuela (AAP.CE N°23) 02.04.93 Goods Not notified  
Argentina (AAP.CE N°16) 02.08.91 Goods Not notified  
LAIA (except Mexico) - Seeds 
(AAP.AG N° 2) 07.06.93 Goods Not notified  
LAIA - Cultural Goods  
(AR.CEYC N°7) 01.01.89 Goods Not notified  
PERU 
Panama 01.05.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Rep. of Korea 01.08.11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V 
Japan 01.03.12  Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico 01.02.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Table V.1 (cont'd)WT/REG304/1 
Page 34  
 
  Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EFTA 01.07.11 Goods 2011 GATT Art. XXIV 
China 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Singapore 01.08.09 Goods & Services 2009  GATT Art. XXIV & GATS Art. V 
Canada 01.08.09 Goods & Services 2009  GATT Art. XXIV & GATS Art. V 
United States 01.02.09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73  Goods 1971 Enabling Clause 
Thailand 31.12.11 Goods Not notified  
Andean Community 14.12.06 Services Not notified  
MERCOSUR (AAP.CE N°58) 02.01.06 ( a) Goods Not notified  
 06.02.06 ( b) Goods Not notified  
Cuba (AAP.CE N°50) 09.03.01 Goods Not notified  
LAIA (except Mexico) - Seeds 
(AAP.AG N°2) 21.08.95 Goods Not notified  
 
(a): For Peru-Brazil/Argentina/Uruguay 
(b): For Peru-Paraguay 
 
LAIA: Latin American Integration Association. 
EFTA: European Free Trade Association. GSTP: Global System of Trade Pref erences among developing countries. 
PTN: Protocol on Trade Negotiations. 
 AAP.CE: Economic Complementarity Agreements. 
AAP.AG: Agreements under Article 12 of th e Montevideo Treaty on Agricultural Goods. 
AR.CEYC: Agreements on Co-operation and Exchange of Cultural Goods. 
 
* For those agreements negotiated under the LAIA framework, the LAIA  reference is included in brackets.  Details of these agreeme nts can 
be found at: http://www.aladi.org  
 
"Partial scope" agreements are those RTAs not  providing for the establishment of a free-trade area and/or providing for a limit ed coverage. 
 
Source: WTO Secretariat. 
  WT/REG304/1 
 Page 35 
 
 
  ANNEX I 
 
Indicators of Trade Liberalization under the Agreement 
  
The Chilean Market 
 
1. Annex Table AI.1 provides a comparison between  preferential tariff rates as part of the 
scheduled programme of elimination of tariffs app lied to Chile's imports from Peru and its MFN rates 
at the entry into force of the Agreement. Chile's  average applied MFN rate in 1998 was 11% overall, 
and for agricultural and non-agricultural products.1  MFN duty-free tariff lines accounted for 0.1% of 
all tariff lines (6% in 2009).  At the date of en try into force of the Agreement (1 March 2009), 
considering that most of the liberalization programme under ACE No 38 had been completed, 
Peruvian exporters enjoyed an absolu te margin of preference of 5.8% vis-à-vis  the prevailing MFN 
tariff2;  5.6% for agricultural goods and 5.9% for non- agricultural products.  The share of duty free 
lines applicable to imports from Peru had risen between 1998 and 2009, from 0.1% to 95.7%.  At the 
end of the implementation period in 2016, Peruvi an exporters will face zero duties on virtually 100% 
of their exports to Chile, with only three non-agricu ltural tariff lines remaining subject to a duty of 
6%. 
Table AI.1 
Chile:  Indicators of MFN tariff rates a nd preferential rates for imports from Peru 
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 1998 11.0 11.0 0.1 11.0 11.0 0.0 11.0 11.0 0.2 
 2009 6.0 6.0 0.5 6.1 6.1 0.0 6.0 6.0 0.5 
 2011 6.0 6.0 0.5 6.0 6.0 0.0 6.0 6.0 0.5 
Peru 1998 6.7 10.7 37.7 6.7 11.0 39.0 6.7 10.7 37.4 
 1999 5.2 8.4 37.7 5.4 8.9 39.0 5.2 8.2 37.4 
 2000 3.9 6.2 37.7 4.3 7.0 39.0 3.8 6.0 37.4 
 2001 2.7 4.4 38.4 3.2 5.3 39.0 2.6 4.2 38.3 
 2002 1.6 2.9 46.3 2.2 3.6 39.0 1.4 2.8 47.9 
 2003 0.8 4.4 81.8 1.3 4.9 73.2 0.7 4.2 83.6 
 2004 0.7 3.8 81.8 1.2 4.4 73.2 0.6 3.6 83.7 
 2005 0.6 3.1 81.8 1.0 3.8 73.2 0.5 2.9 83.7 
 2006 0.4 2.9 85.2 0.9 3.3 73.2 0.3 2.8 87.8 
 2007 0.3 2.3 85.2 0.7 2.7 73.3 0.3 2.1 87.8 
 2008 0.2 5.0 95.7 0.5 5.0 90.2 0.2 4.9 96.9 
 2009 0.2 4.0 95.7 0.4 4.1 90.2 0.1 4.0 96.9 
 2010 0.1 3.1 95.7 0.3 3.1 90.2 0.1 3.0 96.9 
 2011 0.1 2.1 95.7 0.2 2.1 90.2 0.1 2.1 96.9 
 2012 0.1 1.2 95.7 0.1 1.2 90.2 0.0 1.2 96.9 
 2013 0.0 2.3 99.6 0.0 2.0 98.9 0.0 2.6 99.8 
 2014 0.0 1.8 99.6 0.0 1.3 98.9 0.0 2.2 99.8 
 2015 0.0 1.2 99.6 0.0 0.7 98.9 0.0 1.8 99.8 
 2016 0.0 6.0 100.0 0.0 0.0 100.0 0.0 6.0 99.9 
 
a WTO Definition. 
 Based on the HS 1992 nomenclature and HS  2007 nomenclature for MFN 2009 and 2011. 
 
Source : WTO Secretariat estimates based on data provided by Chile. 
 
2. Annex Table AI.2 gives an indication of additi onal market access resulting from the entry into 
force of the Agreement for Peru's top 25 global exports.  During 2008-10 Peru's top 25 exports 
                                                      
1 By comparison, in 2009 and in 2011, Chile's average applied MFN rate was 6%. 
2 The MFN tariff, in 2009, is based on HS 2007 nomenclature, while the rates related to liberalization 
are in HS 1992 nomenclature, which was used when the programme started under the ACE No 38. WT/REG304/1 
Page 36  
 
  accounted for 74.4% of its global exports;  these corresponded to 56 lines at the eight-digit level 
(using the HS 1992). In 1998, when the liberalization programme started under the ACE no 38, none of these products had duty free access to the Chilean market.
3  At the entry into force of the 
Agreement, in 2009, 54 tariffs had already become duty free for Peruvian exporters; 2 additional lines 
will become duty free in 2013. At the end of the implementation period for Chile (in 2013), all these 
tariff lines will be duty free. 
Table AI.2 – Chile:  Market access opportunities under the agree ment for Peru's top 25 exports 
Peru's top export products in 2008-2010  Access Conditions to Chile's import markets  
MFN (1998)Duty-free in  
HS number and description of the product  Share in 
global 
exports 
(%) 
Average MFN 
applied rate 
(%) 
No. of  dutiable 
lines 1998 2002 2004 2008 2013 
710812 Other unwrought forms 21.5 11.0 2 2     
260300 Copper ores and concentrates 16.1 11.0 9 9     
740311 Cathodes and sections of  cathodes 7.6 11.0 1 1     
230120 Flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 4.8 11.0 2 1    1 
260800 Zinc ores and concentrates 4.2 11.0 5 5     
260700 Lead ores and concentrates 3.2 11.0 4 4     
090111 Not decaffeinated 2.3 11.0 2 2     
261390 Other 2.0 11.0 1 1     
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude 1.6 11.0 1   1   
610910 Of cotton 1.4 11.0 1  1    
710691 Unwrought 1.1 11.0 1 1     
800110 Tin, not alloyed 1.0 11.0 2 2     
260111 Non-agglomerated 1.0 11.0 6 6     
150420 Fats and oils and their fractions, of fish, 
other than liver oils 1.0 11.0 2 2     
070920 Asparagus 0.8 11.0 1 1     
740811 Of which the maximum cross-sectional 
dimension exceeds 6 mm 0.8 11.0 1     1 
610510 Of cotton 0.7 11.0 1 1     
261610 Silver ores and concentrates 0.6 11.0 1 1     
790111 Containing by weight 99,99 % or more of 
zinc 0.5 11.0 2 2     
080610 Fresh 0.4 11.0 1    1  
200560 Asparagus 0.4 11.0 1 1     
610610 Of cotton 0.4 11.0 1 1     
030749 Other 0.4 11.0 2 2     
090420 Fruits of the genus capsicum or of the 
genus pimenta, dried or crushed or ground 0.4 11.0 3    3  
740200 Unrefined coppe r; copper anodes for 
electrolytic refining 0.3 11.0 3 3     
Total of above 74.4  56 48 1 1 4 2 
 
Note: Based on HS 1992 nomenclature. 
 
Source : WTO estimates based on data provided by  Chile and UNSD, Comtrade database.  
 
The Peruvian Market 
 
3. Annex Table AI.3 provides a comparison between  preferential tariff rates as part of the 
scheduled programme of elimination of tariffs a pplied to Peru's imports from Chile and MFN rates 
applied by Peru at the entry into  force of the Agreement.  Peru's  average applied MFN rate in 1998 
                                                      
3 In comparison in 2009, when th e Agreement entered into force, for all the lines concerned, the 
applied MFN rate had fallen to 6% from 11%, in 1998.  WT/REG304/1 
 Page 37 
 
 
  was 13.4%.4  Average tariffs on agricultural products were 14.8% and 13.1% on non-agricultural 
products.  There was no MFN duty-free tariff treatment in 1998. In contrast, in 2009, 53.3% of tariff 
lines were MFN duty free (36.6% for agriculture a nd 55.8% for non-agriculture).  In 2011, the share 
of duty-free tariff lines had risen to 55.5%.  At th e date of entry into force of the Agreement 
(1 March 2009), considering that most of the liberalization programme under ACE No 38 had been 
completed, Chilean exporters enjoyed an absolute margin of preference of 4.9% vis-à-vis  the 
prevailing MFN tariff, 5.8% for agricultural goods and 4.9% for non-agricultural products.  The share 
of duty free lines applicable to imports from Chile had risen, between 1998 and 2009, from 0% to 97.4%.  At the end of the implementation period in  2016, Chilean exporters will face zero duties on 
virtually 100% of their exports to Peru, with onl y one non-agricultural product remaining dutiable at 
13%. 
Table AI.3 
Peru:  Indicators of MFN tariff rates a nd 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 1998 13.4 13.4 0.0 14.8 14.8 0.0 13.1 13.1 0.0 
 2009 5.1 10.9 53.3 6.1 9.5 36.6 5.0 11.2 55.8 
 2011 3.4 7.7 55.5 4.0 6.6 38.6 3.3 7.9 58.0 
Chile 1998 8.4 13.6 37.9 9.5 15.7 39.6 8.2 13.1 37.6 
 1999 7.2 11.6 37.9 8.4 13.9 39.6 7.0 11.2 37.6 
 2000 6.0 9.6 37.9 7.3 12.1 39.6 5.7 9.1 37.6 
 2001 4.5 7.3 38.6 6.0 9.9 39.6 4.1 6.7 38.4 
 2002 2.7 5.1 46.5 4.6 7.6 39.6 2.3 4.5 48.1 
 2003 1.7 9.4 81.7 3.2 12.3 74.2 1.4 8.5 83.4 
 2004 1.4 8.1 82.2 2.8 10.8 74.4 1.1 7.1 83.9 
 2005 1.2 6.5 82.3 2.4 9.4 74.4 0.9 5.5 84.0 
 2006 0.9 6.0 85.6 2.1 8.0 74.4 0.6 5.1 88.1 
 2007 0.6 4.9 87.2 1.6 6.5 75.7 0.4 4.1 89.7 
 2008 0.3 8.2 96.8 0.7 8.3 91.8 0.2 8.1 97.9 
 2009 0.2 6.3 97.4 0.3 5.8 94.7 0.1 6.7 98.0 
 2010 0.1 4.8 97.4 0.2 4.4 94.7 0.1 5.0 98.0 
 2011 0.1 2.3 97.7 0.1 2.1 96.2 0.0 2.4 98.1 
 2012 0.0 1.3 97.7 0.0 1.3 96.2 0.0 1.3 98.1 
 2013 0.0 2.6 99.8 0.0 1.8 99.1 0.0 4.7 99.9 
 2014 0.0 2.0 99.8 0.0 1.2 99.1 0.0 4.2 99.9 
 2015 0.0 1.4 99.8 0.0 0.6 99.1 0.0 3.7 99.9 
 2016 0.0 13.0 100.0 0.0 0.0 100.0 0.0 13.0 100.0 
 
a WTO Definition.  Note: Based on the NALADISA 1993 nomenclature. The Secretariat calcu lated the preferential duties and determined the number of 
duty free tariff lines based on Peru's MFN sources from the WTO-ID B and the Peruvian data submission (margin of preference and 
concordance table). The MFN duties were adju sted to 8-digit level. The Secretariat pr oceeded with these adjustments with a view  to 
reconcile NALADISA and HS nomenclatures in  order to ensure that comparable methodol ogies be applied through all factual present ations.  
 
Source :  WTO estimates based on data and concorda nce tables provided by Peru, and WTO-IDB. 
 
4. Annex Table AI.4 gives an indication of additi onal market access in Peru resulting from the 
entry into force of the Agreement for Chile's t op 25 global exports. Chile's  top 25 exports accounted 
for 74.5% of its global exports in 2008-2010;  th ese corresponded to 77 lines at the eight-digit level 
(using the HS 1992).  In 1998, when the liberali zation programme started under the ACE no 38, none 
of these lines had duty free access to the Peruvian market.5  At the entry into force of the Agreement, 
                                                      
4 By comparison, in 2009 and in 2011, Peru's average applied MFN rates were 5.1% and 3.4% 
respectively. 
5 Today [what is today, 2009?], these products correspond to 82 tariff lines, using the HS 2002 
nomenclature (at 10-digit level).  Twenty of these lines are currently duty free on an MFN applied basis. For all 
the others but two (set at 4.5% ) a MFN rate of 9% is levied. WT/REG304/1 
Page 38  
 
  in 2009, 73 lines had already become duty free fo r Chilean products;  2 additional lines will become 
duty free in 2013 and 2 more in 2016. At the end of  the implementation period for Peru (in 2016), all 
these tariff lines will be duty free. 
Table AI.4 - Peru:  Market access opportunities  under the agreement for Chile's top 25 exports 
Chile's top export products in 2008-2010  Access Conditions to Peru's import markets  
MFN (1998)Duty-free in  
HS number and description of the product  Share in 
global 
exports 
(%) 
Average MFN 
applied rate (%)  
No. of  dutiable lines 1998 2003 2006 2008 2013 2016 
740311 Cathodes and sections of cathodes 31.0 12.0 1 1      
260300 Copper ores and concentrates 17.8 12.0 9 9      
740200 Unrefined coppe r; copper anodes for 
electrolytic refining 3.4 12.0 3 3      
261310 Roasted 2.0 12.0 1 1      
080610 Fresh 2.0 20.0 1    1   
220421 In containers holding 2 l or less 1.9 12.0 7    3 2 2 
470321 Coniferous 1.8 12.0 1 1      
470329 Non-coniferous 1.6 12.0 1 1      
710812 Other unwrought forms 1.4 12.0 2 2      
080810 Apples 1.0 20.0 1    1   
740319 Other 0.9 12.0 1 1      
030420 Frozen fillets 0.9 12.0 1 1      
440710 Coniferous 0.9 12.0 4 4      
740400 Copper waste and scrap 0.9 12.0 1 1      
230120 Flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 0.9 12.0 2 1   1   
271000 Petroleum oils and oils obtained from 
bituminous minerals, other than crude; 
preparations not elsewhere specified or included, containing by weight 70 % or 
more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being the basic con 0.8 12.0 19  2 17    
720270 Ferro-molybdenum 0.7 12.0 1 1      
260111 Non-agglomerated 0.7 12.0 6 6      
740811 Of which the maximum cross-sectional 
dimension exceeds 6 mm 0.6 12.0 1    1   
030410 Fresh or chilled 0.6 12.0 2 2      
280120 Iodine 0.6 12.0 2 2      
030310 Pacific salmon (oncorhynchus spp.), 
excluding livers and roes 0.6 12.0 1  1     
710691 Unwrought 0.5 12.0 1 1      
441219 Other 0.5 12.0 2  2     
260112 Agglomerated 0.5 12.0 6 6      
Total of above 74.5  77 44 5 17 7 2 2 
 
Note: Based on the NALADISA 1993 nomenclature. The Secretariat calcu lated the preferential duties and determined the number of 
duty free tariff lines based on Peru's MFN sources from the WTO-ID B and the Peruvian data submission (margin of preference and 
concordance table). The MFN duties were adju sted to 8-digit level. The Secretariat pr oceeded with these adjustments with a view  to 
reconcile NALADISA and HS nomenclatures in order to ensure that comparable methodologies be  applied through all Factual 
Presentations.  
 
Source :  WTO estimates based on data and concordance tabl es provided by Peru, and UNSD, Comtrade  database. 
__________