WT/REG330/1  
3 December 2013  
(13-6606)  Page: 1/28  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN  CHILE AND MALAYSIA  
(GOODS) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Chile and Malaysia has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The report has been drawn up 
in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to 
Mr. Jean Daniel Rey (tel: +41 22 739 5264). Any statistical questions arising from this 
report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 
 WT/REG330/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 7  
2.1   Background  Information ............................................................................................. 7  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 8  
3.1   Import duties and charges, and quantitative restrictions ................................................. 8  
3.1.1   General provisions .................................................................................................. 8  
3.1.2   Liberalization of  trade and ta riff lines ......................................................................... 9  
3.1.3   Liberaliza tion schedule............................................................................................. 9  
3.1.3.1   Chile ............................................................................................................... .. 10 
3.1.3.2   Malaysia ............................................................................................................  11 
3.1.4   Tariff rate quotas ................................................................................................... 13 
3.2   Rules of origin .......................................................................................................... 13 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 14 
3.4   Regulatory provisions on trade in goods ....................................................................... 15 
3.4.1   Standards ............................................................................................................. 15 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 15 
3.4.1.2   Technical barriers to trade .................................................................................... 15 
3.4.2   Safeguard mechanisms ........................................................................................... 16 
3.4.2.1   Global safeguards ............................................................................................... 16 
3.4.2.2   Bilateral safeguards ............................................................................................. 16 
3.4.2.3   Safeguard measures related to  balance of payment (BOP) difficulties ......................... 17 
3.4.2.4   Special safeguards .............................................................................................. 17 
3.4.3   Anti-dumping and countervailing measures ............................................................... 17 
3.4.4   Subsidie s and State-aid .......................................................................................... 17 
3.4.5   Customs-re lated procedures .................................................................................... 17 
3.5   Sector-specific provis ions on trad e in goods ................................................................. 18 
3.5.1   Wines and Spirits ................................................................................................... 18 
4   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 18  
4.1   Tran sparency ........................................................................................................... 18 
4.2   Current payments and capital movements .................................................................... 18 
4.3   Exceptions ............................................................................................................... 19 
4.4   Accession and Withdrawal .......................................................................................... 19 
4.5   Government  procurement .......................................................................................... 19 
4.6   Intellectual property rights ......................................................................................... 19 
4.7   Other ...................................................................................................................... 19 
4.7.1   C ooperat ion .......................................................................................................... 19 
4.7.2   En vironment ......................................................................................................... 20 WT/REG330/1 
 
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  4.7.3   General Review  of the Agreement ............................................................................ 20 
4.7.4   Trade in Serv ices and In vestment ............................................................................ 20 
4.8   Institutio nal framework ............................................................................................. 20 
4.9   Disput e settlement ................................................................................................... 21 
4.10   Relationship with other agr eements concluded by the Parties ........................................ 22 
ANNEX 1 ....................................................................................................................... . 25 WT/REG330/1 
 
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Key Facts 
 
Parties to the Agreement:  Chile and Malaysia 
 
Date of Signature:   13 November 2010 
 
Date of Entry into Force:  25 February 2012  
 
Date of Notification:   12 February 2013 
 
Full implementation:   12 April 2016 
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Free Trade Agreement between Chile an d Malaysia (hereinafter referred to as the 
Agreement) is Chile's 23rd and Malaysia's 12th RTA.2 
1.2.  In 2011, with a population of over 17 m illion, Chile's GDP was estimated at US$249 billion, 
while that of Malaysia, with a population of 28.9 million, was estimated at US$289 billion. While 
Chile mainly exports fuels and mining products (61.8% of Chile's global exports), Malaysia's main 
exports are manufacturing goods (62% of Malaysia's global exports). Both Parties import mainly 
manufactured goods (65.5% of Chile's and 69.2% of Malaysia's global imports). Averaged over the 
period 2009-2011, Chile's trade (goods and services) to GDP ratio (69.4) is substantially lower than Malaysia's (167.2). 
1.1  Merchandise trade 
1.3.  In 2011, Chile's shares in total world exports and imports were 0.45% and 0.41% 
respectively, while Malaysia's shares were 1.25% for exports and 1.01% for imports. With total 
merchandise exports of US$81.5 billion and imports of US$74.9 billion, Chile ranked 33
rd in the 
world as exporter and 27th as importer compared to Malaysia's rankings at 18th for exports and 
19th for imports (with global exports and imports of US$228 billion and US$187 billion). 
1.4.  In 2012, Malaysia was Chile's 25th largest source of imports and 27th destination for exports, 
accounting for 0.26% of its total imports and 0.27% of its total exports.3 For Chile, Malaysia 
represented 0.11% of its total imports, making Malaysia Chile's 41st largest source of import, while 
it was also Chile's 49th largest destination for exports, accounting for 0.06% of Malaysia's total 
exports.4 
1.5.  Developments in global and intra-Party trade are presented in charts 1.1, 1.2 and 1.3.5 
Bilateral trade between Chile and Malaysia and their global trade patterns were similar in terms of 
the overall evolution, and showed an increase, ma rked 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. Over the period 2000-2012 both Chile and Malaysia ran a 
trade surplus in relation to their global trade performances, though, in 2012, the value of Chile's 
global imports surpassed the value of its' global  exports. The available data on bilateral trade 
                                               
1 Source for this section: WTO Trade Profiles as of April 2013 (2011 data); Export figures are calculated 
f.o.b. and import figures are calculated c.i.f. Ranking in world trade is based on 2012 figures extracted from UNSD Comtrade. Intra-EU trade is excluded and EU(27) is  counted as one. For bilateral trade (2012 data), the 
figures are also base d on UNSD Comtrade. 
2 Agreements in goods and services counted as one and only agreements in force and notified to the 
WTO. 
3 In 2012, the five top sources of imports for Chile were: the USA (22.9%), China (18.2%), the EU(27) 
(13.4%), Argentina (6.6%), and Brazil  (6.5%). The five top destinations  of exports from Chile were: China 
(23.3%), the EU(27) (15.3%), the USA ( 12.3%), Japan (10.7), and Korea (5.8%). 
4 In 2012, the five top sources of imports for Malaysia were: China (15.1%), Singapore (13.2%), the 
EU(27) (10.8%), Japan (10.3%), and the USA (8.1%). The five top destinations of exports from Malaysia 
were: Singapore (13.6%), China (12.6%), Japan (11.8%), the EU(27) (8.9%), and the USA (8.7%). 
5 The Charts are constructed on data extracted from UNSD Comtrade. WT/REG330/1 
 
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  however show trade deficit for both Parties for most of the period (except for2001 and 2002 which 
showed a trade surplus for Malaysia6).  
Chart 1.1 Chile: Merchandise bilateral trade and with world 
01234
020406080100
2000 2002 2004 2006 2008 2010 2012A. Chile 2000-2012
(US$ billions)
Imports from Malaysia (Right Axis)
Exports to Malaysia (Right Axis)
Total Imports
Total Exports
 
Source: UNSD Comtrade database. 
                                               
6 Malaysia clarified that it adopts a general trade statistics collection system whereby imports and 
exports include all goods entering and leaving the economic  territory (e.g. ports) of the country, including in 
the free trade zone areas; thus making data for both exports and imports bigger. According to Chile, three 
major factors might explain the divergence of data relate d to bilateral trade between Chile and Malaysia. First, 
export from one country to its partner country registered in the exporting country by the end of one year might 
be registered as import in the impo rting country by early next year, beca use of maritime transportation time. 
Therefore, statistics will differ. This source of discrepancy should be cancelled if a longer period of time is considered. Second, statistical differ ences might also arise from temporar y storage of shipments in a third 
country. In this case, for example, the exporting countr y (for example, Chile) will register its counterpart 
(Malaysia) as the destination of the export, while the importing country (Malaysia) might register the third country (where the shipment is stored for a while) as the originating country of the imported good. In the case of bilateral trade between Chile and Ma laysia, it might be the instance that the use of trade hubs like Panama 
in the Americas, and Singapore in South East Asia, affects the accuracy of bilateral trade statistics, through 
differences in customs registration. Third, this case ma y also arise from re-exports. Goods that area exported 
to a third country and that are re-exp orted to Chile or Malaysia may be registered as coming from the third 
country and not from Chile or Malaysia. WT/REG330/1 
 
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  Chart 1.2: Malaysia: Merchandise bilateral trade and with world 
01234
050100150200250300
2000 2002 2004 2006 2008 2010 2012B. Malaysia 2000-2012 
(US$ billions)
Imports from Chile (Right Axis)
Exports to Chile (Right Axis)
Total Imports
Total Exports
 
 
Source: UNSD Comtrade database. 
 
 1.6.  The commodity structure of trade between the Pa rties, as well as with the world in the period 
2009-2011, is shown in Chart 1.3 on the basis of  Harmonized System (HS) sections. Machinery 
which accounted for 47% of Chile's impo rts from Malaysia was also Chile's 2
nd largest global import 
(23%) and Malaysia's main global export (42% of its global exports). Plastics were Chile's 2nd 
largest import from Malaysia and represented 5% of Chile's global imports and 7% of Malaysia's 
global exports. Malaysia's largest import from Chile was base metals (68% of Malaysia's imports from Chile). While base metals were Malaysia's 3
rd largest global imports, they were Chile's largest 
global export (39%). Minerals, Malaysia's 2nd largest imports from Chile (17%) also ranked 2nd in 
Malaysia's global imports and was Chile's 2nd largest global export (23%). WT/REG330/1 
 
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  Chart 1.3 Chile and Malaysia: product composi tion of merchandise trade, annual average 
(2009-2011) 
47
141475426Chile imports from Malaysia (%)
25
23
13855532227Chile's Global Imports (%)
42
1797553229Malaysia's Global Exports (%)
681743323Malaysia's imports from Chile (%)
42
111076533228Malaysia's Global Imports(%)
39
2376554326Chile's Global Exports(%)Total: US$ 152 million Total: US$ 59 billion
Total: US$ 159 billionTotal: US$ 69 billionTotal:  US$ 194 billion
Total: US$ 217 million
Animal 
products
Vegetables
Vegetable 
fats & oilsChemicalsPlastics
Wood& articles 
of wood
Wood pulpPrecious 
stones
Base metalsVehicles
OpticalOtherMiscellaneousPrepared 
foodsMachinery Textiles
Minerals
 
 
Source:  UNSD, Comtrade database. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed on 13 November 2010. It entered into force on 25 February 2012. 
On 12 February 2013, the Agreement was notified to  the WTO under Article XXIV:7(a). The text of 
the Agreement is available, together with its Annexes, on the Parties' official websites: 
Chile: http://www.direcon.gob.cl/  
 
Malaysia:  http://www.miti.gov.my/  
 
2.2.  Article 1.1 of the Agreement establishes a free trade area between the Parties (Paragraph 1 
of Article 1.2), which, the Parties state, is esta blished "consistent with Article XXIV of the General 
Agreement on Tariffs and Trade 1994". 
2.3.  The Agreement is composed of fourteen chapters. Eight Annexes, including the Parties' 
Schedules, containing their commitments for the reduction and/or elimination of customs duties, complement the text of the Agreement and form an integral part of it. 
2.4.  Box 2.1 below summarizes the legal framework established by the Agreement: WT/REG330/1 
 
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  Box 2.1 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 Administration  
Chapter 6 Sanitary and Phytosanitary Measures 
Chapter 7 Technical Barriers to Trade 
Chapter 8 Trade Remedies 
Chapter 9 Cooperation  
Chapter 10 Transparency 
Chapter 11 Institutional Provisions 
Chapter 12 Dispute Settlement 
Chapter 13 General Exceptions 
Chapter 14 Final Provisions 
  
Annex 3.1 Reduction and/or Elimination of Customs Duties (Chile) 
Annex 3.2 Reduction and/or Elimination of  Customs Duties (Malaysia) 
Annex 4-A Operational Certification Procedure (Rules of origin) 
Annex 4-B Product Specific Rules (Rules of origin) 
Annex 4-C Form of Certificate of Or igin (Rules of origin) 
Annex 6-A Competent Authority (Sanitary and Phytosanitary Measures) 
Annex 6-B Contact Points (Sanitary an d Phytosanitary Measures) 
Annex 10 Contact Points (Transparency) 
Source:  WTO Secretariat based on the Agreement. 
 
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  The Parties agree to apply national treatment to each other's goods in accordance with 
Article III of the GATT 1994, including its interpre tative notes, which are incorporated into and 
made part of the Agreement, mutatis mutandis  (Article 3.3).  
3.2.  The disciplines contained in Article XI of GATT 1994 (prohibition of quantitative restrictions on 
the import of any good of the other Party), includ ing the exceptions provided for in Article XI, are 
incorporated into and made part of the Agreemen t, mutatis mutandis (Article 3.11). However they 
are not applicable to Chile's measures concerning the import of used vehicles, as provided in its Law N° 18.483 or its successor. 
3.3.  Non-tariff measures that are permitted by th e Agreement shall not be constituted, adopted or 
applied with a view to or with the effect of cr eating unnecessary restrictions to trade between the 
Parties (Paragraph 2 of Article 3.11). WT/REG330/1 
 
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  3.1.2  Liberalization of trade and tariff lines 
3.4.  The tariff reduction and/or elimination programme agreed by the Parties is contained in 
Annex 3 to the Agreement. Article 3.4 and Annex 3 establish the modalities applicable to the liberalization programme for Chile (Section 1) and for Malaysia (Section 2). The Parties agreed to a 
standstill of the duty free treatment that was ap plied on the date of signature of the Agreement. 
They also accepted that, except as otherwise provided in the Agreement, neither Party was 
authorized to increase any existing customs duties (at that time) or adopt any customs duty on a 
good of the other Party covered by the Agreement. During the liberalization process, the Parties 
commit to apply in their bilateral trade the lower of the MFN duty or the duty resulting from the tariff liberalization programme. They also agree to consult to consider accelerating the tariff reduction and/or elimination programme, at the request of either Party. 
3.5.  Article 3.7 of the Agreement contains spec ial disciplines applicable to duty-free entry of 
commercial samples of negligible value and printed advertising materials. 
3.6.  In relation with administrative fees and formalities, Article 3.8 of the Agreement reaffirms the 
principles contained in Article VIII:1 of GATT 1994. It prohibits the use of consular transactions, 
including related fees and charges, in connection wi th the import of any good of either Party. The 
Parties also agree to make available through the internet, or a comparable computer-based 
telecommunications network, a list of the fees and charges, imposed in connection with import. 
3.1.3  Liberalization schedule 3.7.  The tariff elimination and/or reduction commitments of the Parties are registered in Annex 3 
to the Agreement, using the nomenclature of the Harmonised System (HS) 2007.  
3.8.  Introductory notes to each Party's Schedule  establish the categories under which the product 
concerned falls for the purpose of tariff reduction and/or elimination. For each category, the applicable number of stages is indicated together  with the respective agreed reductions, expressed 
in terms of a margin of preference (in percentage terms). Chile is nevertheless authorized to 
maintain its price band system
7, provided it is applied in a consistent manner with its rights and 
obligations under the WTO Agreement. 
3.9.  Chile's Schedule has four categories. The first Category (Year 0) contains products whose 
tariffs are eliminated immediately at the entry into force of the Agreement. The second Category (Year 3) has products
8 whose tariffs are progressively reduced, and eliminated two years after the 
entry into force of the Agreement (25 February 2014). The third Category (Year 5) covers 
products9 whose tariffs are also progressively reduced and eliminated four years after the entry 
into force of the Agreement (25 February 2016). Finally, the fourth Category (EXCL) covers 
products which are excluded from tariff reductions and/or elimination.10  
3.10.  Malaysia's Schedule has five categories. The first Category (NT1) covers products whose 
tariffs are eliminated immediately at the entry into force of the Agreement (25 February 2012). 
The second Category (NT2) covers products11 whose tariffs are progressively reduced and 
eliminated two years after the entry into forc e of the Agreement (25 February 2014). The third 
                                               
7 Chile's price band mechanism established under its Law N° 18.525 or succeeding system for the 
products covered by that law. The products cove red by the price band sy stem are certain cereals 
(HS 1001.9000); some flour (1101.0000); and some suga r and sugar confectionery (1701.1100; 1701.1200; 
1701.9100; 1701.9920; and 1701.9990). Chile shall not incorpor ate new products in its Price Band System. 
8 Products listed in this Category can be found in  HS Chapters 15, 18, 25, 28, 29, 32, 35, 39, 40, 48, 
49, 45, 55, 56, 58, 59, 60, 61, 62, 63, 64, 69, 70, 72, 73, 74, 76, 83, 84, 87, and 94. 
9 Products listed in this Category can be found in  HS Chapters 15, 25, 29, 32, 35, 38, 39, 40, 44, 54, 
55, 60, 61, 62, 63, 64, 69, 70, 72, 73, 74, 76, 82, 83, 84, 85, and 87. 
10 Excluded products can be found in HS Chapters 10 (rice), 17 (sugar and glucose), 22 (beer and wine 
products), 36 (fireworks), 39 (some waste, paining an d scrap), 40 (retreated tyres), and 93 (weapons). 
Moreover, no concessions have been made for the entire HS Chapter 77 (pearls, precious stones, some metals, 
imitation jewellery, and coins). 
11 Products listed in this Category can be found in HS Chapters 15, 29, 39, 40, 44, 48, 64, 70, 72, 73, 
76, 84, and 94.  WT/REG330/1 
 
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  Category (SL) covers products12 whose tariffs are also progressively reduced for four years after 
the entry into force of the Agreement (25 February  2016) with the final customs duty set at 5%. A 
fourth Category covers products which are subject to  a duty free tariff rate quota for quantities set 
forth in Malaysia's Schedule.13 Finally, a fifth Catego ry (EL) covers products14 which are excluded 
from tariff reductions and/or elimination.  
3.11.  The Tables below presents the liberalization programme applicable to the Parties. 3.1.3.1  Chile 
3.12.  Chile's applied MFN tariff in 2012 consisted of 7,715 lines at the HS eight-digit level 
(HS 2007). All tariff lines had ad valorem  rates. In 2012, 35 lines were duty free on a MFN basis, 
representing 0.4% of Chile's total tariff, corresponding to 0.3% of its imports from Malaysia during the period 2009-2011. Table 3.1 shows the scheduled duty elimination in terms of tariff lines and 
imports, as applied by Chile to imports from Malaysia. Following the entry into force of the 
Agreement, an additional 6,925 lines (97.2% of Ch ile's tariff) became duty-free for imports from 
Malaysia. As a result, 97.6% of Chile's tariff was duty free for imports from Malaysia in 2012, 
corresponding to 72.7% of its imports by value from Malaysia. Further tariff liberalization is 
expected to take place in 2014 (355 lines) and 2016 (314 lines). By the end of the implementation 
period (2016), 7,629 tariff lines, or 98.9% of Chile's tariff will be duty free for imports from 
Malaysia, corresponding to almost 100% of its imports from Malaysia. 86 tariff lines 
(corresponding to 1.1% of Chile's tariff) will remain dutiable, representing a negligible part of Chile's imports from Malaysia.
15 
Table 3.1 Chile: Tariff elimination commitmen ts under the Agreement and corresponding 
average trade 
Duty phase-out 
period Number of 
lines % of total lines 
in Chile's tariff 
schedule Value of Chile's 
imports from 
Malaysia 
(2009-2011) 
in million US$ % of Chile's 
total imports 
from  
Malaysia 
2009-2011 
MFN duty free (2012)  35 0.5 0.0 0.0 
2012 6,925 89.8 125.7 91.0 
2014 355 4.6 1.6 1.2 
2016 314 4.1 10.7 7.8 
Remain dutiable 86 1.1 0.0 0.0 
Total 7,715 100.0 138.0 100.0 
 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data  provided by Chile and WTO-IDB. 
 
3.13.  Table 3.2 shows Chile's tariff elimination, by HS section. The 86 lines that will remain 
subject to duties once implementation is completed are found in sections II (Vegetable products), 
IV (Mineral products), VI (Chemical products),  VII (Plastics), and XIX (Arms and Ammunitions), 
with final average tariffs at 6%, equal to the MF N applied rate. Chart 3.2 shows, by HS Chapter, 
depicting that the average preferential dutiab le rates is equal to the MFN applied rate.  
                                               
12 Products listed in this Category can be found in HS Chapters 8, 15, 25, 28, 29, 36, 38, 40, 44, 46, 48, 
56, 64, 72, 76, 83, 84, 85, 87, 91, and 95. 
13 The main features of the tariff rate quota granted by Malaysia ar e presented under section 3.1.4 of 
the present Factual Presentation. 
14 No concessions have been made fo r the entire HS Chapters 24 (Tobacco), 77 (pearls, precious stones, 
some metals, imitation jewellery, and coins), and 93 (a rms and ammunition). Those products are consequently 
to be considered excluded from the liberalization pr ogramme. A specific duty for Pineapples (HS 0804.30.000) 
has been capped at RMO.608 until the end of the implementation period (2016). This specific treatment is 
clarified under Malaysia's Exclusion List. 
15 The products subject to the Price Band Mechanism have been excluded from the tariff liberalization 
and are therefore included in the cate gory of tariffs remaining dutiable. WT/REG330/1 
 
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  Table 3.2 Chile: Tariff elimination und er the Agreement, by HS Section  
HS Section MFN average%  No. of lines MFN 2012  Number of  
duty-free lines Remain dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2014  2016 
I 6.0 604  604     
II 6.0 405  397   8 6.0 
III 6.0 60  55 3 2   
IV 6.0 415  370 1  44 6.0 
V 6.0 196  191 1 4   
VI 6.0 1,232  1,156  23 51 2 6.0 
VII 6.0 304  269 10 16 9 6.0 
VIII 6.0 81  81     
IX 6.0 158  152  6   
X 5.9 209 4 190 15    
XI 6.0 1,093  897 107 89   
XII 6.0 109  70 30 9   
XIII 6.0 187  140 37 10   
XIV 6.0 60  60     
XV 6.0 637  456 102 79   
XVI 6.0 1,142 2 1,088  11 41   
XVII 5.5 333 29 292 5 7   
XVIII 6.0 258  258     
XIX 6.0 23     23 6.0 
XX 6.0 202  192 10    
XXI 6.0 7  7     
Total 6.0 7,715 35 6,925  355 314 86 6.0 
 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data  provided by Chile and WTO-IDB. 
 
Chart 3.1 Chile: Average of duti able rates, by HS Chapter 
0246810
10 11 17 22 24 36 39 40 93
HS ChapterAverage rate of duty 
(%)  
 
 
Source: WTO Secretariat estimates based on the WTO-IDB and the data provided by the authorities of Chile. 
 
3.1.3.2  Malaysia 
3.14.  Malaysia's applied tariff in 2012 consisted of 10,389 lines at the HS nine-digit level 
(HS 2007). Most tariff lines (99.29 of the tariff) had ad valorem  duties, while 39 tariff lines had 
specific rates, 35 composed of compound duties, and one had mixed duty.  In 2012, 6,630 lines 
were duty free on a MFN basis, representing 63.8% of Malaysia's total tariff, corresponding to 94.5% of its imports from Chile during the period 2009-2011. Table 3.3 shows Malaysia's 
scheduled duty elimination in terms of tariff lines and imports, for imports from Chile. Following 
the entry into force of the Agreement, an addi tional 2,690 lines (25.9%) became duty-free for 
imports from Chile. As a result, 89.7% of Malaysia 's tariff was duty free for imports from Chile in 
2012, corresponding to 98.4% of its imports by valu e from Chile. Further tariff elimination took 
place in 2013 (four lines) and is expected in 2014  (663 lines). By the end of implementation 
(2014), 9,726 tariff lines, or 93.6% of Malaysia's tariff will be duty free for imports from Chile, 
corresponding to 98.4% of its imports from Chile. 663 tariff lines (6.4% of Malaysia's tariff) will 
remain dutiable, representing 1.6% of its imports from Chile. 
 WT/REG330/1 
 
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  Table 3.3 Malaysia: Tariff elimination commitments under the Agreement and 
corresponding average trade 
Duty phase-out 
period Number 
of lines % of total lines 
in Malaysia's 
tariff schedule Value of Malaysia's 
imports from Chile 
(2009-2011) 
in million US$ % of Malaysia's 
total imports from  
Chile 
2009-2011 
MFN duty free (2012)  6,630 63.8 204.7 94.5 
2012 2,690 25.9 8.5 3.9 
2013 4 0.0 0.0 0.0 
2014 402 3.9 0.1 0.1 
Remain dutiable 663 6.4 3.4 1.6 
Total 10,389 100.0 216.6 100.0 
 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Product coverage is from HS chapters 1-97. 
 Based on the HS 2007 nomenclature.   Source:  WTO estimates based on data provided by Malaysia and WTO-IDB. 
 
3.15.  Table 3.4 and Chart 3.1 respectively show Malaysia's tariff elimination, by HS section and 
HS Chapter. The 663 lines that will remain subject to duties once implementation is completed are 
spread out among all HS sections except Sections  VIII, XII to XIV, and XXI. Chart 3.2 shows, by 
HS Chapter, the average preferential dutiable rate s in comparison with the MFN applied rate. For a 
number of HS Chapters especially in Chapters  25-97, there is a significantly lower average 
preferential rate showing that while tariffs are not eliminated, preferential access for Chile has been improved  
Table 3.4 Malaysia: Tariff elimination under the Agreement, by HS Section 
 
HS Section MFN average%  No. of lines MFN 2012  Number of  
duty-free lines Remain dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2013  2014 
I 2.7 325 280 26  2 17 35.9 
II 2.7 354 262 62   30 16.7 
III 2.5 166 98 46  21 1 5.0 
IV 2.6 462 310 100   52 5.0 
V 1.4 203 178 24   1 5.0 
VI 1.9 1,083 941 128  1 13 16.9 
VII 13.2 655 199 243  97 116 9.4 
VIII 0.3 99 96 3     
IX 1.4 2,024 1,880 98  34 12 5.0 
X 10.4 333 124 207  1 1 5.0 
XI 7.7 1,075 475 598   2 5.0 
XII 6.6 84 51 27  6   
XIII 17.9 204 50 110  44   
XIV 0.4 62 58 4     
XV 11.3 1,020 300 413 1 134 172 5.0 
XVI 5.4 1,257 859 326 2 60 10 5.0 
XVII 17.7 463 112 141   210 5.0 
XVIII 0.8 266 247 17 1  1 5.0 
XIX 14.2 26 2    24 15.4 
XX 8.9 218 101 114  2 1 5.0 
XXI 1.5 10 7 3     
Total 6.0 10,389 6,630 2,690  4 402 663 7.8 
 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Product coverage is from HS chapters 1-97. 
 Based on the HS 2007 nomenclature. 
  
Source:  WTO estimates based on data provided by Malaysia and WTO-IDB. WT/REG330/1 
 
- 13 - 
 
  Chart 3.2 Malaysia: Average of du tiable rates, by HS Chapter 
020406080100
12478 1 0 1 5 * 2 2 2 4020406080100
25
28
29363839404446
48
56727683848587
91
9395HS  01-24HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
 
Note on Malaysia: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates are excluded and the ad valorem parts of alternat e rates are included.  
 
*HS chapter 22 contains specific duties only. 
 Source: WTO Secretariat estimates based on the WTO- IDB and the data provided by the authorities of 
 Malaysia. 
 
3.1.4  Tariff rate quotas 
3.16.  Malaysia grants Chile a duty-free preferen tial tariff rate quota of 1,000 metric tonnes for 
each of four (nine-digit) poultry products.16 The out of quota tariff is set at 20%.17 The preferential 
tariff rate quota treatment is granted immediately at the entry into force of the Agreement. The quota volume agreed for shall be increased, depend ing on the product, at a rate of 5% per annum 
until 2022. 
3.2  Rules of origin 
3.17.  Disciplines regarding rules of origin are set out in Chapter 4 of the Agreement
18. 
3.18.  A good is considered as originating, and thus benefiting from preferential treatment, when: 
a. it is wholly obtained or produced entirely in the territory of a Party19; or 
b. it is produced in the territory of a Party, using non-originating materials, which comply 
with a change of classification (CTC). To qualify under this condition, the HS Heading 
under which a final good is classified must be different from that under which the 
non-originating materials used in the production process of the final good are classified
20; or 
c. it is produced in the territory of a Party, using non-originating materials, which comply 
with a regional value content (RVC)21 that shall be no less than 40% (except for the 
goods for which a product specific rule apply); or 
d. it satisfies the product specific rules, which are specified in Annex 4-B to the Agreement. 
                                               
16 HS 0207.11.000, 0207.12.000, 0207.13.000, and 0207.14.000. 
17 For the four product lines, the applied MFN tariffs in 2012 were set at 40%. 
18 The terms used in HS Chapter 4 are defines in Article 4.1. 
19 The concept of wholly obtained or prod uced goods is detailed in Article 4.3. 
20 See Article 4.5. 
21 The Qualifying Value Content is detailed in Article 4.4. WT/REG330/1 
 
- 14 - 
 
  3.19.  Product specific rules are defined for a large number of HS Chapters.22 In most cases, all 
non-originating materials used in the production of a good must have undergone a CTC (either at 
the HS 2-digit, 4-digit, or, in few cases, 6-digit levels) to confer origin on the good, thus qualifying it for preferential treatment. For a number of products, either the CTC or the regional value 
content (40%) is required.
23 In a few cases, the product specific rules define a manufacturing or 
processing operation that, in addition to or instead of the CTC, confers origin. This is especially the case for most textiles and textile articles
24 as well as for discs, tapes, and other storage devices, 
when recording has been performed.25 
3.20.  Chapter 4 of the Agreement also contains additional disciplines on minimal operations and 
processes that do not confer origin (Article 4.7); the determination of origin for fungible goods and materials (Article 4.10) as well as for accessories, spare parts, tools and instructional or 
information materials (Article 4.11), the treatment of packages, packing materials and containers 
(Article 4.12), and aspects of the determination of origin related to direct consignment of goods (Article 4.13). A de minimis level, under which non originating materials not complying with rules 
conferring origin may still be determined as originating for the purposes of the Agreement, is set 
at 10% of the f.o.b. value of the good (Article 4.9). 
3.21.  On accumulation, an originating good of a Party which is used in the processing or 
production in the territory of the other Party as ma terial for a finished good, shall be deemed to be 
a material originating in the territory of the latter Party where the working or processing of the finished goods has taken place (Article 4.8).  
3.22.  The Agreement contains a standard certificate of origin form (in Annex 4-C) that must be 
used when a claim for preferential treatment under the Agreement is made (Article 4.14). 
Moreover, for the purposes of implementing the ru les of origin applicable to the Agreement, a 
number of operational procedures on the issuance and verification of the Certificate of Origin as 
well as other related administrative  matters are set out in Annex 4-A.
26 
3.23.  A Committee on Rules of Origin and Customs Administration is established by Article 4.15 
for the purposes of the effective implementation an d operation of Chapter 4 (on rules of origin), or 
of Chapter 5 (on customs administration). 
3.3  Export duties and charges,  and quantitative restrictions 
3.24.  In relation with administrative fees and formalities, Article 3.8 of the Agreement reaffirms 
the principles contained in Article VIII:1 of GATT 1994, as applicable for measures related to 
exports. The Parties also agree to make available through the internet or a comparable 
computer-based telecommunications network a list of the fees and charges, imposed in connection 
with exports. 
3.25.  The disciplines contained in Article XI of GATT 1994 (prohibition of quantitative restrictions 
on the export or sale for export of any good destined for the territory of the other Party), including 
                                               
22 No Product Specific Rules have been designed for HS Chapters 12, 14, 18, 23, 24, 26, 29, 34, 36, 38 
to 40, 44 to 47, 49, 64, 66 to 68, 75, 77 to 80, 86, 88, 89, 92, 93, and 95. 
23 T h i s  i s  t h e  c a s e  f o r  s om e  p r o d u c t s  o f  HS  C h a p ters 3 (fish), 8 (fruits), 19, 20, 21, and 22 (some 
prepared foodstuffs and beverages), 25 (cement), 28, 31, 32, 35, and 37 (some chemical products), 41, 42, and 43 (some articles of animal gu t), 48 (some paper), 65 (some headgear), 71 (some pearls and precious 
stones), 72, 73, 74, 76, and 83 (some base metals), 84 and 85 (machinery and mechanical appliances), 87 
(some parts and accessories of motor vehicles), 90 (some optical and precision instruments), as well as 94 and 
96 (miscellaneous manufactures articles). 
24 In particular for a number of products co vered by HS Chapters  50, 51, 53 to 63. 
25 Recording performed on products classified under HS 85.23. 
26 Certification-related disciplines related to the following topics are contained in a covering note 
contained in Annex 4-A: (i) certification of origin; (ii) certificate of origin; (iii) amendments to the certificate of origin; (iv) verification prior to issuance; (v) application for certificate or origin; (vi) obligations of the competent authority; (vii) issuance of certificate of origin; (viii) duplicate; (ix) exceptions to the requirement to produce a certificate of origin; (x) mi nor discrepancies in the certificate of  origin; (xi) request for information 
concerning certificate of origin; (xii) verification visit; (xiii) determination of origin and preferential treatment; 
(xiv) records and confidentiality; (xv) exhibition; (xvi) penalties against false declaration; (xvii) obligations of the exporters; (xviii) obligations of the importer; (x ix) customs duty refund; an d (xx) non-party invoices. WT/REG330/1 
 
- 15 - 
 
  the exceptions provided for in Article XI, are incorporated into and made part of the Agreement, 
mutatis mutandis (Article 3.11).  
3.4  Regulatory provisions on trade in goods 3.4.1  Standards 
3.4.1.1  Sanitary and phytosanitary measures 
3.26.  Chapter 6 of the Agreement contains disciplines on the application of sanitary and 
phytosanitary measures of a Party that may, di rectly or indirectly, affect trade between the 
Parties. The Parties reaffirm their rights and obligations with respects to each other under the 
WTO SPS Agreement (Article 6.4). They also agree to cooperate in relevant bodies engaged in work on SPS related issues, including the WTO SPS Committee, the Codex Alimentarius, the OIE
27, 
and the IPPC.28 
3.27.  Each Party agrees to enter into consultations on any matter arising under Chapter 6, upon 
request from the other Party (Article 6.5). A request for consultation shall be made between the competent authorities of the Parties (set out in Annex 6-A to the Agreement), and through 
notification to the Contact Points established by Article 6.7 (set out in Annex 6-B to the 
Agreement). In case of a dispute between the Part ies on SPS related issues, and if consultations 
have failed to settle such dispute, the dispute settlement procedures contained in Chapter 12 of 
the Agreement are applicable.  
3.28.  The Parties shall explore opportunities for further cooperation and collaboration on SPS 
measures of mutual interest (Article 6.8). 
3.29.  A Committee on Sanitary and Phytosanitary Measures is established by Article 6.6. It 
provides a forum for the purposes of the effective implementation and operation of Chapter 6. 
3.4.1.2  Technical barriers to trade 3.30.  Chapter 7 of the Agreement contains common disciplines on technical barriers to trade 
(TBT) with the objective to increase and facilitate bilateral trade through the implementation of the 
WTO TBT Agreement, the elimination of unnece ssary technical barriers to trade and the 
enhancement of bilateral co-operation (Article 7.2). Chapter 7 applies to all standards, technical 
regulations, and conformity assessment procedures that may, directly or indirectly, affect trade in 
goods between the Parties. It does not however cover SPS measures and/or technical specifications prepared by governmental bodies for their production or consumption requirements. 
3.31.  The Parties reaffirm their rights and obligations with respects to each other under the 
WTO TBT Agreement (Article 7.4). They also agree to use international standards, as a basis for 
their technical regulations and related conformity assessment procedures where relevant international standards exist or are imminent, except when such international standards or their 
relevant parts are ineffective or inappropriate to fulfil legitimate objectives (Article 7.5).
29 
3.32.  Each Party shall give positive consideration to accepting as equivalent, technical regulations 
of the other Party when the objectives of the Party's regulations are fulfilled (Article 7.6). 
3.33.  Co-operation between the Parties in the fields of standards, technical regulations and 
conformity assessment procedures shall take place wi th a view to facilitating trade. Moreover, the 
Parties shall seek to identify trade facilitating bilateral initiatives regarding the above-mentioned aspects. An illustrative list of such initiatives is included in Article 7.7. Co-operation and exchange 
of information shall also take place between the Parties with a view to accepting the other Party's 
conformity assessment results, when possible. Ea ch Party shall accredit, approve, licence, or 
                                               
27 OIE: World Organization for Animal Health. 
28 IPPC: International Plant Protection Convention. 
29 The Parties shall apply the principles set out in the Decision of the Committee on Principles for the 
Development of International Standards, Guides and Recommendations with relation to Article 2, 5 and 
Annex 3 of the Agreement , adopted by the WTO Committee on Techni cal Barriers to Trade since 1 January 
1995 - G/TBT/1/Rev.8 May 2002, Section IX. WT/REG330/1 
 
- 16 - 
 
  otherwise recognize conformity assessment bodies in  the territory of the other Party, on terms no 
less favourable than those it accords to conformity assessment bodies in its territory (Article 7.8). 
3.34.  Chapter 7 also contains provisions on transparency, including on participation in public 
consultative processes if organized (Article 7.9); technical co-operation (Article 7.10); and 
information exchange (Article 7.12). In order to facilitate communication and ensure the proper 
functioning of the TBT Committee, which is establ ished by Article 7.11, Contact Points on TBT 
matters are also established by the Agreement.30  
3.35.  A Committee on Technical Barriers to Trade is established by Article 7.11. The TBT 
Committee's functions include , inter alia , the monitoring of the implementation and administration 
of Chapter 7 of the Agreement. 
3.4.2  Safeguard mechanisms 
3.4.2.1  Global safeguards 
3.36.  Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards. Moreover, the Agreemen t does not confer any additional rights or 
obligations on the Parties with regard to actions taken pursuant to Article XIX of GATT 1994 and 
the WTO Agreement on Safeguards (Article 8.1). 
3.4.2.2  Bilateral safeguards 
3.37.  During the transition period only31, a Party may impose a bilateral safeguard measure if, as 
a result of the reduction or elimination of a customs duty pursuant to the liberalization programme, an originating good of a Party is being imported into the other Party's territory in such increased quantities, in absolute terms or rela tive to domestic production and under such 
conditions as to constitute a substantial cause of serious injury, or threat thereof, to a domestic 
industry producing like or directly competitive goods (Article 8.4).
32 Applied to the extent 
necessary to prevent or remedy serious injury, or threat thereof, a bilateral safeguard measure 
consists of: either (i) the suspension of a furthe r reduction of any rate of customs duty provided 
for under the Agreement on the originating good33; or (ii) an increase in the rate of customs duty 
on the good to a level not to exceed the lesser of the MFN applied rate in effect on the date on 
which the bilateral safeguard is taken, or on the day immediately preceding the date of entry into 
force of the Agreement. Bilateral safeguard measures may not be used on an originating good subject to a tariff rate quota and imported within the in-quota quantity (as contained in Annex 3 to the Agreement). 
3.38.  Bilateral safeguard measures may apply for no longer than three years and, regardless of 
their duration, shall terminate at the end of the transition period. Moreover, they shall be progressively liberalized at regular intervals during the period of application (Article 8.5)
34 and 
may not be imposed more than once on the same good.  
3.39.  A Party may impose a bilateral safeguard measure only after an investigation has been 
carried out. Investigation-related procedures are those provided for by the WTO Agreement on 
Safeguards.35 The investigation shall, as far as possible, be completed within 180 days from 
                                               
30 The contact point has been established for Chile. For Malaysia, the contact point has been identified 
but needs yet to be formally established. Malaysia's participation in the TBT Committee will be coordinated by Standards Malaysia. 
31 The term "transition period" shall be understood as  the five year period beginning on the date of 
entry into force of the Agreement (25 February 2012), except where the tariff elimination for the goods against which the action is taken occurs over a longer period of  time, in which case the transition period shall be the 
period of the staged tariff elimination for that goods. 
32 The terms "domestic industry", "serious injury", "substantial cause", and "threat of serious injury" are 
defined under Article 8.3 of the Agreement.  
33 from the date on which the action to apply the bilateral safeguard measures is taken. 
34 Upon the termination of a bilateral safeguard measure, the rate of customs duty shall be the rate 
which would have been in effect  had the measure not been taken (Paragraph 5 of Article 8.5). 
35 Articles 3 and 4 of the WTO Agreement on Safeguar ds are incorporated into and made part of the 
Agreement, mutatis mutandis . WT/REG330/1 
 
- 17 - 
 
  initiation but in no case to exceed one year (Art icle 8.6). The Agreement provides for notification 
obligations (Article 8.7). 
3.40.  Article 8.9 foresees the possibility of im posing provisional safeguard measures, which shall 
no exceed 180 days. The duration of the provisio nal measures shall be counted as a part of the 
total duration of the safeguard measures. A Party applying a bilateral safeguard measures shall 
also offer compensation to the other Party. Should a mutual agreement not be found on compensation, the other party shall be free to suspend the application of substantially equivalent 
concessions to the trade of the Party applying the safeguard measure. 
3.41.  While Chapter 8 of the Agreement does not prevent the Parties from applying safeguard 
measures in accordance with either Article XIX of the GATT 1994 and the WTO Agreement on Safeguards, or Article 5 of the WTO Agreement on Agriculture, neither Party may impose a 
bilateral safeguard measures on a good that is (or becomes) subject to a safeguard measure 
subject to either the WTO Agreement on Safeguards or the WTO Agreement on Agriculture (paragraph 4 of Article 8.5). 
3.42.  The Parties agree to co-operate and exchange information on their respective trade remedy 
laws, policies and practices, as well as in relation to international issues relating to the WTO Doha Round Rules negotiations (Article 8.11). 
3.4.2.3  Safeguard measures related to  balance of payment (BOP) difficulties 
3.43.  The Parties agree that they shall endeavour to avoid the imposition of restrictive measures 
for balance of payment purposes. Any measure taken for BOP purposes shall be in accordance with the Parties' rights and obligations under GATT 1994, including the Understanding on the BOP 
Provisions of the GATT 1994. In case such a measure is adopted, consultations with the other 
Party shall be initiated immediately. The Agreement confirms that the rights and obligations of a Party under the Articles of Agreement of the IMF shall not be altered (Article 13.4). 
3.4.2.4  Special safeguards 
3.44.  The Agreement does not contain any other special safeguards mechanism. 3.4.3  Anti-dumping and countervailing measures 
3.45.  With regard to the application of antidumping and countervailing duties, each Party retains 
its rights and obligations under Article VI of GATT 1994, the WTO Agreement on Implementation of Article VI of the GATT 1994 (Antidumping) and the WTO Agreement on Subsidies and Countervailing Measures. No provision of the Agreement shall be construed as imposing any rights 
or obligations on the Parties with respect to antidumping or countervailing duty measures 
(Article 8.2). 
3.4.4  Subsidies and State-aid 
3.46.  The Parties state their shared objective to see the multilateral elimination of export 
subsidies for agricultural goods and agree to work together towards an agreement in the WTO to eliminate those subsidies and prevent their reintroduction in any form (Article 3.10). 
3.4.5  Customs-related procedures 
3.47.  The determination of the customs value of goods trade between the Parties is to be 
consistent with Part I of the WTO Agreement on Customs Valuation, as may be amended, which is incorporated into and made part of the Agreement, mutatis mutandis  (Article 3.6). 
3.48.  In addition to aspects specifically related to the implementation of rules of origin disciplines, 
Chapter 5 of the Agreement covers customs procedur es related to trade between the Parties. A set 
of common rules on customs procedures agreed by the Parties cover the publication of statutory 
and regulatory provisions and procedures applicable  by each Party, the designation of one or more 
enquiry points to address enquiries concerning customs matters, and the invitation to allow prior consultation on any related regulation of general application governing customs matters WT/REG330/1 
 
- 18 - 
 
  (Article 5.4). It also contains principles applicable to and recommended practices for the prompt 
release of goods (Article 5.5); the use of risk  management methodology and the exchange of 
information on best practices, risk management  techniques and other enforcement techniques 
(Article 5.6); the importers' access to administ rative and judicial review of administrative 
determinations (Article 5.12); and the use of information and communications technology in the 
Parties' customs procedures (Article 5.10). A system  of penalties, in case of violations of the 
Parties customs laws and regulations, shall be in place (Article 5.13). Written advance rulings on 
tariff classification and application of customs valuation criteria shall also be available to importers 
upon request (Article 5.14). Moreover, the Parties agree to co-operate on capacity building, as may mutually be agreed upon, and for trade facilitation. Their customs authorities shall assist each other on compliance matters between their respective customs laws and the provisions of the 
Agreement as well as in relation to the implem entation and operation of the WTO Agreement on 
Customs Valuation, the enforcement of prohibitions and restrictions on exports to and imports from their respective territories, and, inter alia , the fight against customs fraud (Article 5.7). A 
best endeavour commitment to cooperate in enforcemen t matters related to illicit trafficking is also 
contained in the Agreement (Article 5.9). 
3.49.  Any information communicated between the Parties under Chapter 5 shall be treated as 
confidential unless the requested authority consents in writing to its disclosure. Moreover, such 
information shall be used solely for the purpose of administrative assistance (Article 5.11).  
3.5  Sector-specific provisions on trade in goods 3.5.1   Wines and Spirits 
3.50.  Article 3.13 of the Agreement contains the Parties commitments related to the recognition 
by the Parties of the geographical indications (GIs) of certain wines and spirits (Section 4.6 
below).  
4  GENERAL PROVISIONS OF THE AGREEMENT 
4.1  Transparency 4.1.  Transparency provisions of a general a pplication are contained in Chapter 10 of the 
Agreement. Article 10.2 establishes that the Contact Points, referred to in Annex 10 to the 
Agreement, shall facilitate communications between the Parties on any matter covered by the Agreement. Chapter 10 also foresees the prompt publication (preferably in electronic form) of laws, regulations, procedures and administrative rulings of general application respecting any 
matter covered by the Agreement. Advance publication and, where appropriate, reasonable 
opportunity to comment on proposed measures are encouraged. Notifications, through the relevant contact points, and the provision of information shall be performed as established by the 
Agreement.  
4.2.  Administrative proceedings shall be carried out with a view to administering the transparency 
provisions in a consistent, impartial and reasonable manner. Prompt reviews of administrative 
measures shall also be guaranteed and appeal procedures shall be made available.  
4.3.  Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of 
information (Article 13.5). 
4.4.  In addition to the general provisions in Chapter 10, each Party shall ensure the transparency 
of non-tariff measures that may be permitted by the Agreement (Paragraph 2 of Article 3.11). 
4.2  Current payments and capital movements 4.5.  The Agreement does not contain any specific disciplines on these matters. WT/REG330/1 
 
- 19 - 
 
  4.3  Exceptions 
4.6.  For the purposes of Chapters 3 to 7 (trade in goods, rules of origin, customs administration, 
SPS measures, and TBT), Article XX of the GATT 19 94 and its interpretative notes are incorporated 
and made part of the Agreement, mutatis mutandis  (paragraph 1 of Article 13.1). 
4.7.  Through the incorporation, in Article 13.2,  of a text similar to that of Article XXI of 
GATT 1994, the Agreement also reserves the applic ation by the Parties of measures covered by 
security exceptions. In case such measures are take n by a Party, it shall, to the extent possible, 
inform the Joint Committee of measures taken and of their termination. 
4.8.  According to Article 13.3, nothing in the Agreement shall apply to taxation measures. The 
Agreement shall only grant rights or impose obligations with respect of taxation measures where corresponding rights or obligations are also granted or imposed under the WTO Agreement. 
Moreover, nothing in the Agreement shall affect the rights and obligations of the Parties under any 
taxation agreement in force between them.
36 
4.9.  Nothing in the Agreement shall be construed to prevent a Party from taking an action 
authorized by the WTO Dispute settlement body. 
4.4  Accession and Withdrawal 4.10.  There are no specific provisions on third party accession to the Agreement.  
4.11.  The disciplines on termination are contained in Article 14.7 and foresee the possibility for a 
Party to terminate the Agreement, subject to a written notification, twelve months after which the Agreement will expire. 
4.5  Government procurement 
4.12.  The Agreement does not contain any provision on government procurement. 
4.6  Intellectual property rights 4.13.  The Agreement does not contain a specific Chapter on intellectual property rights. However, 
Chapter 3 (on trade in goods) contains specific disciplines agreed by the Parties on the recognition 
of geographical indications for some wines and spirits.
37 
4.14.  Malaysia recognizes, in accordance with its domestic legislation, a GI for "Chilean Pisco", 
that falls within the scope of protection estab lished in Article 22 of the TRIPS Agreement. This 
recognition by Malaysia shall in no way be prejudicial to its rights to also recognize a GI for "Pisco", exclusively for Peru, that also falls within the scope of protection of TRIPS Article 22.  
4.15.  In relation to wines, Article 3.13 clarifie s that Chilean GIs for wines are established by the 
Decree 464 of the Ministry of Agriculture of 14 December 1994, and its amendments, and by Law 
N° 18.455. 
4.7  Other 
4.7.1  Cooperation 
4.16.  Chapter 9 of the Agreement contains the Parties' commitment to promote co-operation 
between them in a number of trade-related activities. Illustrative lists of areas of co-operation, 
going beyond trade in goods matters, and cooperative activities are contained in Article 9.3.  
                                               
36 In the event of any inconsistency relating to a taxation measure between the Agreement and any 
taxation agreement, the latter shall prevail. The "taxation agreement" covered are: (i) the Agreement between 
the Government of the Republ ic of Chile and the Government of Malays ia for the Avoidance of Double Taxation 
and the Prevention of Fiscal Evasion with respect to Taxes on Income , including its Protocol; or (ii) other 
international taxation agreement or arra ngement in force between the Parties. 
37 See Section 3.5.1 of the present Factual Presentation. WT/REG330/1 
 
- 20 - 
 
  4.17.  The costs of co-operation under Chapter 9 sh all be borne by the Parties within the limits of 
their own capacities and through their own channels, in an equitable manner to be mutually agreed upon between the Parties (Article 9.7). 
4.18.  In relation with Chapter 9 of the Agreement, a Co-operation Committee is established 
together with national contact points. 
4.19.  Dispute settlement shall not apply to Chapter 9 (Article 9.8). 4.7.2  Environment 
4.20.  In Chapter 9 of the Agreement (on co-operation), the Parties agree that it is inappropriate 
to enact or use their environmental laws, regulations, policies and practices for trade protectionist purposes and to relax, or fail to enforce or admi nister, their environmental laws and regulations to 
encourage trade and investment (Article 9.5). They also identify a non-exhaustive list of areas of 
common global or domestic concern in which they intend to cooperate. Contact points
38 shall be 
designated in order to facilitate communication in those matters.  
4.7.3  General Review of the Agreement 
4.21.  The Parties may undertake a general review of the Agreement, with a view to furthering its 
objectives, within five years of the entry into force of the Agreement and at least every five years thereafter (Article 14.4). 
4.7.4  Trade in Services and Investment 
4.22.  Unless otherwise agreed, no later than two years after the entry into force of the 
Agreement, the Parties shall undertake consultations with regard to the inclusion of Chapters on Services and Investment to the Agreement, on a mutually advantageous basis (Article 14.5). 
4.23.  Future negotiations between the Parties on Financial Services are also envisaged in the 
Agreement. Article 14.6 establishes that, no later than two years after the entry into force of the 
Agreement, the Parties shall commence negotiations to include a separate and self-contained 
Chapter on Financial Services to this Agr eement, on a mutually advantageous basis. 
4.8  Institutional framework 4.24.  Chapter 11 of the Agreement covers inst itutional provisions and establishes the Joint 
Committee to ensure, inter alia , the review of the general functi oning of the Agreement. One of 
the functions of the Joint Committee is also to supervise the work of committees, working groups and contact points established under the Agreement. This is in particular applicable to the Committees, which are mentioned in various parts of the Agreement, including the Committee on 
trade in goods, which is established by Article 3.12 to, inter alia , review and monitor the 
implementation and operation of Chapter 3.  
4.25.  The institutional framework established und er the Agreement is summarized in Chart 4.1. 
                                               
38 Not yet established. WT/REG330/1 
 
- 21 - 
 
  Chart 4.1 Institutional Framework  established by the Agreement 
 
  
4.9  Dispute settlement 
4.26.  Chapter 12 sets out the procedures and institutional arrangements that apply in cases of 
disputes between the Parties regarding questions of interpretation or application of the Agreement. 
The dispute settlement mechanism is applicable in case a measure of a Party is considered by the 
other Party as being inconsistent with its obligations under the Agreement, or a Party considers 
that the other Party has failed to carry out its obligations under the Agreement.  
4.27.  Article 12.2 provides for "forum shopping" as well as "forum exclusion" clauses for matters 
falling under the Agreement and other agreements to which the Parties are party. Accordingly, a 
Party shall be considered to have selected a forum when it has requested the establishment of, or 
referred a matter to an arbitral tribunal. 
4.28.  Chapter 12 provides for detailed steps in the process for dispute resolution, the salient 
features of which are described in Chart 4.2 below.  
Chart 4.2 Specific Dispute Settlement Me chanism established by the Agreement 
 Joint Committee (Art. 11.1) Arbitral Tribunals (Art. 12.6) 
Committee on Trade in Goods (Art. 3.12 ) 
Committee on SPS measures (Art. 6.6 ) 
Committee on Technical Barriers to Trade (Art. 7.11) 
Committee on Rules of Origin and Cu stoms Administration (Art. 4.15) 
Source: WTO Secretariat based on the A greement.  Co-operation Committee (Article 9.6) 
Request for consultations and 
consultations (Art. 12.3) 
Request for the establishment of 
an Arbitral Tribunal (Art.12.6) 
Proceedings (Art. 12.9) 
Issuance of Final Report of the 
Arbitral Tribunal (Art. 12.12) Initial Report to the Parties  
(Art. 12.11) 
Implementation 
(Art. 12.13) 
Suspension of benefits  
(Art. 12.14) Determination of compliance by 
the Panel  
(Art. 12.13 or 12.14)) Non-Implementation (Art. 12.14)  Good Offices, Conciliation, or 
Mediation (Article 12.5) Referral to the Joint Committee 
(Art. 12.4) 
Source: WTO Secretariat based on the A greement.  WT/REG330/1 
 
- 22 - 
 
  4.29.  If the Parties fail to resolve a dispute through consultations, they may refer the case to the 
Joint Committee with a view to reaching a mutually satisfactory resolution of the dispute. The Joint Committee may call upon technical advisers, create such working groups or expert groups as it deems necessary, or make recommendations (Article 12.4). The parties may also, at any time, 
agree to good offices, conciliation or mediation (Article 12.5). Subsequently, the case may be 
referred, upon request by a Party, to a Arbitral  Tribunal (Article 12.6) with standard terms of 
reference (Article 12.7), composed of three arbitrators chosen by the Parties (Article 12.8).
39 
Majority voting and publication of dissenting opinions are foreseen in cases the Tribunal may not 
decide by consensus. 
4.30.  An initial report (Article 12.11) shall be issued to the Parties, in principle within 120 days 
(or within 60 days in cases of urgency), followed by a final ruling within 30 days. The final report 
(Article 12.12), which is binding on the Parties, shall be made public within 15 days of being 
transmitted to them. 
4.31.  In case of non-compliance, the complaining Party is entitled to temporarily suspend 
concessions either in the same sector as the one affected, or, if this is not feasible, in a different 
sector. The Party complained against may complain about the level of suspension to the original Tribunal to rule on the matter.  
4.32.  Dispute settlement, as established under Chapter 12, does not apply to Chapter 9 
(on Co-operation).  
4.10  Relationship with other agreements concluded by the Parties 4.33.  The Parties affirm their existing rights an d obligations with respect to each other under the 
WTO Agreement.
40  
4.34.  The Parties also affirm their rights and obligations under other agreements to which they 
are both a party. In the event of any inconsistency between the Agreement and these other 
agreements, the Parties agree to immediately consult with a view to finding a mutually satisfactory 
solution, taking into consideration general principles of international law (Paragraph 2 of Article 1.2). 
4.35.  The Parties' other regional trade agreements in force (both notified and non-notified) are 
listed in Table 5.1. 
Table 5.1 Chile and Malaysia: Participation in  other RTAs (notified and non-notified in 
force), as of 17 October 2013*
 
Partner / Agreement Date of 
entry 
into force  Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
CHILE  
Nicaragua (Chile-Central 
America) 19.10.12 Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
Turkey 01.03.11 Goods 2011 GATT Art. XXIV 
Guatemala (Chile-Central 
America) 23.03.10 Goods & 
Services 2012 GATT Art. XXIV & GATS Art. V 
                                               
39 If a Party has not appointed an arbitrator or if  the Chair of the arbitral tribunal has not been 
designated by the parties within 45 days of the receipt of the request to establish an arbitral tribunal, either Party may request the Director-General of the WTO to appo int the arbitrator or arbitrators not yet appointed. If 
the Director-General of the WTO has not appointed the arbi trator or arbitrators within 30 days after the date of 
the request, the arbitrator or arbitrat ors not yet appointed shall be chosen within 15 days by the arbitrator or 
arbitrators that were already appointed. 
40 The Marrakech Agreement establishing the World Trade Organization. Unless otherwise provided in 
the Agreement, if any provision of the WTO Agreement th at the Parties have incorporated into the Agreement 
is amended, the Parties shall consult on whether to amend the Agreement. WT/REG330/1 
 
- 23 - 
 
  Partner / Agreement Date of 
entry 
into force  Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
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 
Peru 01.03.09 Goods & 
Services 2011 GATT Art. XXIV & GATS Art. V 
Honduras (Chile-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 
EFTA 01.12.04 Goods & 
Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & 
Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & 
Services 2003 GATT Art. XXIV & GATS Art. V 
European Union 01.02.03 
01.03.05 Goods 
Services 2004 
2005 GATT Art. XXIV 
GATS Art. V 
El Salvador (Chile-Central 
America) 01.06.02 Goods & 
Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica (Chile-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 
LAIA - Accession of Panama 03.05.12 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 
LAIA - Cultural Goods  
(AR.CEYC N°7) 28.07.01 Goods Not notified 
MERCOSUR (AAP.CE N°35) 01.10.96 Goods Not notified 
LAIA - Seeds 
(AAP.AG N° 2) 07.06.93 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 - Preferences in favour 
of Bolivia (AR.AM N°1) 27.01.84 Goods Not notified WT/REG330/1 
 
- 24 - 
 
  Partner / Agreement Date of 
entry 
into force  Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
LAIA - Preferences in favour 
of Ecuador (AR.AM N°2) 27.01.84 Goods Not notified 
LAIA - Preferences in favour 
of Paraguay (AR.AM N°3) 27.01.84 Goods Not notified 
MALAYSIA 
Australia 01.01.13 Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
India 01.07.11 Goods & 
Services 2011 Enabling Clause & GATS Art. V 
New Zealand 01.08.10 Goods & 
Services 2012 GATT Art. XXIV & GATS Art. V 
ASEAN-Rep. of Korea 01.01.10 
01.05.09 Goods 
Services 2010 
2010 GATT Art. XXIV, Enabling Clause 
& GATS Art. V 
ASEAN-Australia-New Zealand 01.01.10 Goods & 
Services 2010 GATT Art. XXIV & GATS Art. V 
ASEAN-India 01.01.10 Goods 2010 Enabling Clause 
ASEAN-Japan 01.12.08 Goods 2009 GATT Art. XXIV 
Pakistan 01.01.08 Goods & 
Services 2008 Enabling Clause & GATS Art. V 
Japan 13.07.06 Goods & 
Services 2006 GATT Art. XXIV & GATS Art. V 
ASEAN-China 01.01.05 
01.07.07 Goods  
Services 2005  
2008  Enabling Clause 
GATS Art. V 
AFTA 28.01.92 Goods 1992 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
 
Source: WTO Secretariat.  EFTA:   European Free Trade Association GSTP:  Global System of Trade Pref erences among developing countries 
LAIA:  Latin American Integration Association 
PTN:  Protocol on Trade Negotiations AFTA:  ASEAN Free Trade Area  ACE:  Economic Complementarity Agreements AAP.AG:  Agreements under Article 12 of the Montevideo Treaty on Agricultural Goods. 
AR.CEYC:  Agreements on Co-operation  and Exchange of Cultural Goods. 
 
* For those agreements negotiated under the LAIA frame work, the LAIA reference is  i n c l u d e d  i n  b r a c k e t s .  
Details of these agreements can be found at: http://www.aladi.org .  
"Partial scope" agreements are those RTAs not providin g for the establishment of a free-trade area and/or 
providing for a limited coverage. 
 
 
  WT/REG330/1 
 
- 25 - 
 
  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
The Chilean Market 
1. Annex Table A1.1 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs by Chile for imports from Malaysia and its MFN rates 
at the entry into force of the Agreement. Chile's  average applied MFN rate in 2012 was 6% (for all 
products). MFN duty-free tariff lines accounted for 0.5%  of all tariff lines. At the date of entry into 
force of the Agreement for Chile (18 April 2012), Malaysian exporters enjoyed an absolute margin 
of preference of 5.6% vis-à-vis  the prevailing MFN tariff; 5.7% for agricultural goods and 5.5% for 
non-agricultural products. The share of duty free lines applicable to imports from Malaysia was 90.2% overall, 94.4% for agricultural products and 89.6% for non-agricultural products. At the 
end of the implementation period in 2016, Malaysia n exporters will face zero duties on 98.9% of 
Chile's tariff (95% for agricultural products  and 99.5% for non-agricultural products). 
Table A1.1 Chile: Indicators of MFN tariff rates and preferential rates for imports from 
Malaysia
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 6.0 6.0 0.5 6.0 6.0 0.0 6.0 6.0 0.5 
Malaysia 2012 0.4 4.6 90.2 0.3 5.8 94.4 0.5 4.5 89.6 
 2013 0.3 3.1 90.2 0.3 5.6 94.4 0.3 2.9 89.6 
 2014 0.2 3.2 94.8 0.3 5.9 94.8 0.1 2.8 94.8 
 2015 0.1 2.2 94.8 0.3 5.8 94.8 0.1 1.7 94.8 
 2016 0.1 6.0 98.9 0.3 6.0 95.0 0.0 6.0 99.5 
a WTO Definition. 
 Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data  provided by Chile and WTO-IDB. 
 
2. Annex Table A1.2 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Malaysia's top 25 global exports. During 2009-2011 Malaysia's top 
25 exports accounted for 54% of its global exports and corresponding to 67 lines at the 
HS eight-digit level, none of which were duty free. However, at the entry into force of the 
Agreement, in April 2012, 64 lines became duty free . One more line will become duty free in 2014. 
At the end of the implementation period for Chile (in 2016), two tariff lines (crude oil and some 
rubber products) will remain dutiable. 
Table A1.2 Chile: Market access opportunities  under the agreement for Malaysia's top 
25 exports to the world  
Malaysia's top export products in 2009-2011 Access Conditions to Chile's 
import markets 
MFN (2012)  Duty-
free in 
HS number and description of the product Share in 
global 
exports (%) Average 
MFN 
applied 
rate 
(%) 
No. of 
dutiable 
tariff lines 
2012 
2014 
2016 
854231 -- processors and controllers, whether or 
not combined with memories, converters, logic circuits, amplifie rs, clock and timing 
circuits, or other circuits 7.0 6.0 1 1   
271111 -- natural gas 6.4 6.0 1 1   WT/REG330/1 
 
- 26 - 
 
  Malaysia's top export products in 2009-2011 Access Conditions to Chile's 
import markets 
MFN (2012)  Duty-
free in 
HS number and description of the product Share in 
global 
exports (%) Average 
MFN 
applied 
rate 
(%) 
No. of 
dutiable 
tariff lines 
2012 
2014 
2016 
151190 Palm oil, other than crude, and fractions 
thereof , whether or not refined but not chemically modified 5.4 6.0 1 1   
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 4.7 6.0 2 2   
847330 - parts and accessories of the machines of 
heading 84.71 4.4 6.0 1 1   
854239 Other Electronic integrated circuits, other 
than amplifiers, memo ries, processors and 
controllers 2.9 6.0 1 1   
271019 Petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 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 constituents of the preparations, other than waste oils and light oils and preparations 2.8 6.0 13 13   
847170 - storage units 2.2 6.0 5 5   
852872 -- other, colour 1.9 6.0 4 4   
847180 - other units of automatic data processing 
machines 1.5 6.0 3 3   
400122 -- technically specified natural rubber 
(tsnr) 1.4 6.0 1 1   
151110 - crude oil 1.3 6.0 1  1  
271011 -- light oils and preparations 1.3 6.0 11 11   
401519 Gloves (excluding su rgical), mittens and 
mitts, for all purposes, of vulcanised 
rubber other than hard rubber 1.2 6.0 4 2  2 
854290 Parts of electronic integrated circuits 1.1 6.0 1 1   
151620 - vegetable fats and oils and their 
fractions 1.1 6.0 1 1   
854140 - photosensitive semiconductor devices, 
including photovoltaic cells whether or not assembled in modules or made up into 
panels; light emitting diodes 1.1 6.0 1 1   
854232 -- memories 1.0 6.0 1 1   
854129 Transistors (excluding photosensitive 
transistors), other than those with a dissipation rate of <1W 0.9 6.0 1 1   
852990 Other parts suitable for use solely or 
principally with the apparatus of headings 
85.25 to 85.28., other than aerials and 
aerial reflectors of all kinds 0.8 6.0 1 1   
847130 - portable automatic data processing 
machines, weighing not more than 10 kg, consisting of a least a central processing unit, a keyboard and a display 0.7 6.0 1 1   
853710 - for a voltage not exceeding 1,000 v 0.7 6.0 4 4   
854190 Parts of the devices of HS heading 85.41 0.7 6.0 1 1   
711319 -- of other precious metal, whether or not 
plated or clad with precious metal 0.7 6.0 1 1   
853690 - other apparatus 0.6 6.0 5 5   
Total of above 54.0  67 64 1 2 
 
Note: Based on the HS 2007 nomenclature.  Source: WTO estimates based on data provided by  Chile, WTO-IDB and UNSD, Comtrade database.  WT/REG330/1 
 
- 27 - 
 
  The Malaysian Market 
3. Annex Table A1.3 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs by Malaysia for imports from Chile and its MFN rates at the entry into force of the Agreement. Malaysia's average applied MFN rate in 2012 was 6% 
overall (2.8% for agricultural products and 6.4% for non-agricultural products). MFN duty-free 
tariff lines accounted for 63.8% of all tariff lines.  At the date of entry into force of the Agreement 
for Malaysia (25 February 2012), Chilean exporters enjoyed an absolute margin of preference of 
4% vis-à-vis  the prevailing MFN tariff; 1.7% for agricultural goods and 4.5% for non-agricultural 
products. The share of duty free lines applicable  to imports from Chile was increased to 89.7% 
overall, 89.8% for agriculture and 89.7% for non-agriculture. At the end of the implementation period in 2016, Chilean exporters will face zero duties on 93.6% of Malaysia's tariff lines (91.6% 
for agricultural products and 93.9% for non-agricultural products). 
Table A1.3 Malaysia: Indicators of MFN tari ff rates and preferential rates for imports 
from Chile
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 6.0 16.7 63.8 2.8 10.7 71.5 6.4 17.2 62.8 
Chile 2012 2.0 19.8 89.7 1.1 15.5 89.8 2.1 20.2 89.7 
 2013 1.4 14.0 89.7 1.1 14.9 89.8 1.4 13.9 89.7 
 2014 0.8 13.1 93.6 1.0 19.1 91.6 0.8 12.4 93.9 
 2015 0.5 8.5 93.6 1.0 19.0 91.6 0.4 7.3 93.9 
 2016 0.5 7.8 93.6 1.0 19.0 91.6 0.4 6.6 93.9 
a WTO Definition. 
 Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Product coverage is from HS chapters 1-97. 
 Based on the HS 2007 nomenclature.   Source:  WTO estimates based on data provided by Malaysia and WTO-IDB. 
 
4. Annex Table A1.4 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Chile's top 25 global exports. During 2009-2011, Chile's top 25 exports accounted for 75.1% of its global exports; these corresponded to 63 lines at the 
HS eight-digit level. Before the entry into force of the Agreement 56 of these tariff lines were duty 
free on an MFN basis. At the entry into force of  the Agreement, in 2012, four additional lines 
became duty free. At the end of the implementation period for Malaysia (in 2016), three tariff lines 
relating to certain wine products and some wood  products will continue to remain dutiable. 
Table A1.4 Malaysia: Market access opportuni ties under the agreement for Chile's top 25 
exports to the world
 
Chile's top export products in 2009-2011 Access Conditions to Malaysia's import 
markets 
MFN (2012)
Duty-free in 
2012 
Remain 
dutiable HS number and description of the product 
Share in 
global 
exports (%) 
Average 
MFN applied 
rate 
(%) No. of tariff 
lines Duty-
free 
Dutiable 
740311 -- cathodes and sections of cathodes 31.5 0.0 1    
260300 Copper ores and concentrates. 18.2 0.0 1    
740200 Unrefined copper; copper anodes for 
electrolytic refining. 3.6 0.0 1    
080610 - fresh 2.0 5.0  1 1  
220421 -- in containers holding 2 l or less 1.9 RM7.00  2  2 
470321 -- coniferous 1.7 0.0 1    
710812 -- other unwrought forms 1.6 0.0 1    
261310 - roasted 1.6 0.0 1    WT/REG330/1 
 
- 28 - 
 
  Chile's top export products in 2009-2011 Access Conditions to Malaysia's import 
markets 
MFN (2012)
Duty-free in 
2012 
Remain 
dutiable HS number and description of the product 
Share in 
global 
exports (%) 
Average 
MFN applied 
rate 
(%) No. of tariff 
lines Duty-
free 
Dutiable 
470329 -- non-coniferous 1.5 0.0 1    
260111 -- non-agglomerated 1.1 0.0 2    
740400 Copper waste and scrap. 0.9 0.0 1    
740319 Unwrought products of refined copper 
(excl. of 7403.11-7403.13) 0.9 0.0 1    
030429 Fish fillets & other fish meat (excl. of 
0304.21-0304.92, whether/not minced), frozen fillets 0.9 0.0 1    
080810 - apples 0.9 5.0  1 1  
440710 - coniferous 0.8 0.0 24    
230120 - flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 0.8 0.0 2    
271019 Petroleum oils & oils obtained from 
bituminous minerals (other than crude) & preparations not elsewhere specified/incld., containing by weight 
70 %/more of petroleum oils/of oils 
obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils & light oils & preparations 0.7 0.4 11 1 1  
280120 - iodine 0.7 0.0 1    
030319 Pacific salmon (Oncorhynchus 
gorbuscha/keta/tschawytscha/kisutch/masou/rhodurus), frozen (excl. of 0303.11; excl. fillets/other fish meat of 03.04/livers & roes) 0.7 0.0 1    
710691 -- unwrought 0.6 0.0 1    
740811 -- of which the maximum cross-
sectional dimension exceeds 6 mm 0.6 25.0  1 1  
030321 -- trout (salmo trutta, oncorhynchus 
mykiss, oncorhynchus clarki, 
oncorhynchus aguabonita, 
oncorhynchus gilae, oncorhynchus 
apache and oncorhynchus 
chrysogaster) 0.6 0.0 1    
030419 Fish fillets & other fish meat (excl. of 
0304.11-0304.12, whether/not minced), fresh/chilled 0.5 0.0 1    
260112 -- agglomerated 0.5 0.0 2    
441239 Plywood, consisting solely of sheets of 
wood (other than bamboo, excl. of 4412.31 &4412.32), each ply not> 6 mm thkns 0.5 35.0  1  1 
Total of above 75.1  56 7 4 3 
 
Note: Based on the HS 2007 nomenclature.  Source: WTO estimates based on data provided by Malaysia, WTO-IDB and UNSD, Comtrade database.  
__________