WT/REG356/1  
8 July 2015  
(15-3519)  Page: 1/39  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN HONG KONG, CHINA AND CHILE 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Hong Kong, China and Chile, has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the comments provided and does not imply offi cial endorsement or acceptance by the 
Secretariat of such terminology. 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) and thus does not imply any value judgement by the Secretariat regarding the contents of the Agreement. 
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/REG356/1 
 
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TABLE OF CONTENTS 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 5  
1.1   Merchand ise trade ..................................................................................................... 5  
1.2   Trade in servic es and inve stment ................................................................................. 7  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 10  
2.1   Background  Information ............................................................................................ 10 
2.2   Structure of the Agreement ........................................................................................ 10 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 11 
3.1.1   Genera l provisions ................................................................................................. 12 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 12 
3.1.3   Liberaliza tion schedules .......................................................................................... 12 
3.1.3.1   Hong Kong, China ............................................................................................... 12 
3.1.3.2   Chile ............................................................................................................... .. 13 
3.1.4   Tariff rate quotas ................................................................................................... 14 
3.2   Rules of origin .......................................................................................................... 14 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 15 
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 .................................................................................... 16 
3.4.2   Safeguard mechanisms ........................................................................................... 16 
3.4.2.1   Global safeguards ............................................................................................... 16 
3.4.2.2   Bilateral safeguards ............................................................................................. 16 
3.4.2.3   Measures to safeguard the balance of pa yments (BOP) ............................................. 16 
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 provisions on trade in goods .................................................................. 17 
4   PROVISIONS ON TRADE IN SERVICES AND IN VESTMENT ......................................... 17  
4.1   Scope and definitions ................................................................................................ 17 
4.2   Denial of benefits ..................................................................................................... 18 
4.3   General provisions on trade in services ........................................................................ 18 
4.3.1   National treatment and MFN .................................................................................... 18 
4.3.2   Mark et acce ss ....................................................................................................... 19 
4.3.3   Commercial presence ............................................................................................. 19 
4.3.4   Performanc e requirements ...................................................................................... 19 
4.3.5   Senior Managers and Boards of  Direct ors .................................................................. 19 WT/REG356/1 
 
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  4.3.6   Movement of  natural persons .................................................................................. 19 
4.4   Liberalization commitments ........................................................................................ 20 
4.4.1   Hong Kong, China .................................................................................................. 20 
4.4.1.1   Sector sp ecific commitments ................................................................................ 20 
4.4.1.2   Busi ness serv ices ................................................................................................ 22 
4.4.1.3   Communication services ....................................................................................... 22 
4.4.1.4   Construction and re lated engineerin g services ......................................................... 23 
4.4.1.5   Distribu tion serv ices ............................................................................................ 23 
4.4.1.6   Educat ional serv ices ............................................................................................ 23 
4.4.1.7   Environm ental services ........................................................................................ 23 
4.4.1.8   Financial services ................................................................................................ 23 
4.4.1.9   Health relate d and social servic es .......................................................................... 23 
4.4.1.10   Tourism and travel related services ...................................................................... 23 
4.4.1.11   Recreational, cultur al and sporting  services ........................................................... 23 
4.4.1.12   Transp ort serv ices ............................................................................................. 23 
4.4.2   Chile ................................................................................................................. ... 24 
4.4.2.1   Sector sp ecific commitments ................................................................................ 24 
4.5   Regulatory provisions ................................................................................................ 27 
4.5.1   Domestic regulation ............................................................................................... 27 
4.5.2   Recognition ........................................................................................................... 27 
4.5.3   Subsidies .............................................................................................................. 27 
4.5.4   Safeguards ........................................................................................................... 27 
4.6   Other ...................................................................................................................... 28 
4.6.1   In vestme nt ........................................................................................................... 28 
4.7   Sector specific provis ions on trade in services ............................................................... 29 
4.7.1   Financial services ................................................................................................... 29 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 29  
5.1   Tran sparency ........................................................................................................... 29 
5.2   Current payments and capital movements .................................................................... 29 
5.3   Exceptions ............................................................................................................... 29 
5.3.1   Genera l exceptions ................................................................................................ 29 
5.3.2   Security exceptions ................................................................................................ 30 
5.4   Accession and withdrawal .......................................................................................... 30 
5.5   Institutio nal framework ............................................................................................. 30 
5.6   Disput e settlement ................................................................................................... 31 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 32 
5.8   Government  procurement .......................................................................................... 34 
5.9   Intellectual property rights ......................................................................................... 34 
5.10   Ot hers ................................................................................................................. . 34 
5.10.1   Competition ........................................................................................................ 34 WT/REG356/1 
 
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  5.10.2   En vironm ent ....................................................................................................... 35 
5.10.3   Labour ...............................................................................................................  35 
ANNEX 1 ....................................................................................................................... . 36 
ANNEX 2 ....................................................................................................................... . 39 
 WT/REG356/1 
 
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Key Facts 
 
Parties to the Agreement:  Hong Kong, China and Chile 
 
Date of Signature:  7 September 2012   
 
Date of Entry into Force:  9 October 2014 
 
Date of Notification:   15 October 2014 
 
Full implementation:  Goods :  1 January 2016  
Services :  9 October 2014  
 
 1  TRADE ENVIRONMENT
1 
1.1.  The Free Trade Agreement between Hong Kong, China and Chile (hereinafter referred to as 
the Agreement) is Hong Kong, China's 4th and Chile's 25th regional trade agreement (RTA).2 
1.2.  In 2013, with a population of 7.2 million, Hong Kong, China's GDP was estimated at 
US$274 billion, while that of Chile, with a population of 17.6 million, was estimated at 
US$277 billion. Both Parties mainly imported manufactured products (respectively 75.7% of Hong Kong, China's and 69.4% of Chile's total imports). While manufactured products also 
constituted the main category of exports for Hong Kong, China, fuels and essentially mining 
products represented Chile's main export sector. Averaged over the period 2011-2013, the Parties' trade (goods and services) to GDP ratio were 432.5 for Hong Kong, China and 68 for Chile, showing two very different trade reliance profiles. 
1.1  Merchandise trade 
1.3.  In 2013, Hong Kong, China's shares in total world exports and imports were 2.85% and 
3.29% respectively. With total merchandise exports of US$535.5 billion and imports of 
US$ 622.3 billion, it was the 6
th largest global exporter and 5th largest importer, while Chile ranked 
33rd largest exporter and 25th largest importer (with exports of US$76.7 billion and imports of 
US$79.2 billion). 
1.4.  In 2013, Hong Kong, China was Chile's 29th largest source of imports and 28th destination for 
exports (0.2% of both Chile's global imports and exports)3. Chile was Hong Kong, China's 
27th largest source of imports and 29th destination for exports (0.1% of Hong Kong, China's global 
imports and exports).4 
1.5.  Developments in global and intra-Party tr ade are presented in Chart 1.1 A and B over the 
period 2002-2014. In connection with bilateral trad e, though the data from both parties confirm 
that Hong Kong, China had a trade surplus with Ch ile up to 2006, divergences can be observed for 
the following years with the data showing a trade surplus for both RTA partners, with the 
exception of a bilateral trade deficit for Hong Ko ng, China in 2009 and 2014. In its global trade, 
Hong Kong, China maintained a deficit over the period with the gap between imports and exports 
widening. During most of the period, Chile's trad e surplus with the world was maintained with the 
exception of the years 2012 and 2013 during which exports were surpassed by imports.  
                                               
1 Source for this section: WTO Trade Profiles September 2014 (2013 data) and, for bilateral trade, 
UNSD Comtrade (2013 data). Export figures are calculated f.o.b. and import figures are calculated c.i.f. Ranking in world trade excluding intra-EU trade.  
2 Agreements in goods and services counted as one an d only agreements in forc e, notified to the WTO. 
3 In 2013, the five top sources of imports for Chile were: the US (20.2%); China (19.7%); the EU(28) 
(16.6%); Brazil (6.4%); and Argent ina (4.9%). The five top destinatio ns for Chile's exports were: China 
(24.8%); the EU(28) (14.6%); the US ( 12.7%); Japan (9.9%); and Brazil (5.7%). 
4 In 2013, the five top sources of imports for Hong Kong, China were: China (42.9%); Switzerland 
(8.2%); the EU(28) (7.4%); Japan (6.2%); and the US (6%). The five top destinations for Hong Kong, China's exports were: China (59.9%); the EU(28) (8.1%); the US (8%); Japan (3.3%); and India (2.1%). WT/REG356/1 
 
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  Chart 1.1 Hong Kong, China and Chile: bilateral and total merchandise trade 
(2002-2014) 
012345678
0102030405060708090100
2002 2004 2006 2008 2010 2012 2014B. Chile 2002-2014
(US$ Billion)
Imports from Hong Kong, China (Right Axis)
Exports to Hong Kong, China (Right Axis)
Total Imports
Total Exports
012345678
0100200300400500600700
2002 2004 2006 2008 2010 2012 2014A. Hong Kong, China 2002-2014
(US$ Billion)
Imports from Chile (Right Axis)
Exports to Chile (Right Axis)
Total Imports
Total Exports
 
Note: mirror data used for bilateral trade of Chile for 2002. 
Source: UNSD, Comtrade database. 
 
1.6.  The commodity structure of trade between  Hong Kong, China and Chile, and between each 
Party and the world, during 2011-2013, is shown in Chart 1.2, on the basis of Harmonized System 
(HS) Sections.  
1.7.  With regard to bilateral trade relations between Hong Kong, China and Chile, vegetables 
represented a large part (73%) of Hong Kong, China's imports from Chile. Exports of this category 
of products was the third largest for Chile (repre senting 8% of its global exports) but only a 
marginal part of Hong Kong, China's global imports. Machinery alone accounted for 76% of Chile's imports from Hong Kong, China. This sector is Chile's second largest global import (22%) and 
Hong Kong, China's largest export to the world (56%). WT/REG356/1 
 
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  Chart 1.2 Hong Kong, China and Chile: Product Composition of merchandise trade, 
annual average (2011-2013) 
731082222Hong Kong, China imports from Chile (%)
51
175533222226Hong Kong, China's Global Imports (%)
36
25865443324Chile's Global Exports (%)
76943224Chile's imports from Hong Kong, 
China(%)
24
22
15855532287Chile's Global Imports(%)
56
1675332225Hong Kong, China's Global Exports(%)Total: US$ 441 million Total: US$ 562 billion
Total: US$ 78 billionTotal: US$ 495 billionTotal:  US$ 79 billion
Total: US$ 122 million
 
Source: UNSD, Comtrade database. 
 
1.2  Trade in services and investment 
1.8.  In 2013, Hong Kong, China's shares of total commercial services exports and imports were 
2.87% and 1.36% respectively, while Chile's shar es were 0.27% and 0.35% of world exports and 
imports of services respectively. With total co mmercial services exports of US$133.3 billion, and 
imports of US$59.5 billion, Hong Kong, China was the 6th world's largest exporter and 13th largest 
importer of commercial services. Chile was the 32nd largest exporter (US$76.7 billion) and 
33rd largest importer (US$79.2 billion). 
1.9.  Charts 1.3 and 1.4 below show trade in commercial services for Hong Kong, China and for 
Chile, both bilaterally5 and globally. Hong Kong, China experienced a surplus both in its global 
trade in services as well as with Chile during the period covered. While travel, transport, other business services, and financial services constitu te Hong Kong, China's main services exports, 
transport services are its largest export to Chile. Chile's balance of trade in services with the world 
is negative with exports below imports, transport,  travel and business services being the services 
sectors essentially traded. 
                                               
5 Statistics on bilateral trade are not available from Chilean sources. WT/REG356/1 
 
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  Chart 1.3 Hong Kong, China: Trade in commercial services with Chile (2011-2012) and 
the world (2011-2013) 
2011 2012051015A. Hong Kong, China imports from Chile
2011-2012
(US$ Million) 
050100150200
2011 2012B. Hong Kong, China exports to Chile
2011-2012
(US$ Million) 
050100150
2011 2012 2013D. Hong Kong, China exports  to world
2011-2013
(US$ Billion) 
Manufacturing services
Maintenance & repair services
Transport 
Travel Insurance and pension services
Financial services
Charges for the use of intellectual 
propertyTelecom, computer and information services
Other business servicesConstruction
Personal, cultural and recreational services050100150
2011 2012 2013C. Hong Kong, China imports  from world
2011-2013
(US$ Billion) 
 
Notes: 
Confidential bilateral trade figures suppressed for Maintenance and Repair; Travel; Construction; and for 
Financial exports. 
Bilateral trade figures are not indicated for Manufactu ring; Charges for the use of intellectual property; 
Telecom, computer and information services; and for import figures fo r Financial services which denotes 
figures < $HK 0.5 million. 
Export world figures not indicated for Manufact uring which denotes figures < $HK 0.5 million. 
Exchange rates used for converting from HK$ to US$ were: 7.78 (2011), 7.76 (2012) and 7.76 (2013).  
Source: Census and Statistics Depa rtment, HKSARG (based on BMP6). 
 WT/REG356/1 
 
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  Chart 1.4 Chile: Trade in commercial services with the world, 2001-2013 
024681012141618
2001 2003 2005 2007 2009 2011 2013A. Chile imports from world
2001-2013
(US$ Billion)
024681012141618
2001 2003 2005 2007 2009 2011 2013B. Chile exports to world
2001-2013
(US$ Billion)
 
Note: No trade data available for Communication services, Financial services and Computer and 
information services for 2013 and no trade data for Construction for 2001-2013. 
Source: WTO Statistics database (based on BMP5). 
 
1.10.  Charts 1.5-1.6 below depict each Party's foreign direct investment stocks and flows 
bilaterally6 and with the world which has grown steadily during the period 2001-2012, with the 
exception of 2008 in connection with the financial crisis. For both Parties however, since, 2012, FDI flows have stepped back as compared with the previous year.  
Chart 1.5 Hong Kong, China: FDI stock and flow with the world, 2001-2013 
 
02004006008001,0001,2001,4001,600
2001 2003 2005 2007 2009 2011 2013Hong Kong, China FDI stock with world
2001-2013
(US$ Billion) 
Outward Inward
020406080100120
2001 2003 2005 2007 2009 2011 2013Hong Kong, China FDI flow with world
2001-2013
(US$ Billion) 
Outward Inward
 
Note: 
Exchange rates used for converting from HK$ to US$ were: 7.78 (2011), 7.76 (2012) and 7.76 (2013). 
Source: UNCTAD and Survey of Exte rnal Claims, Liabilities and Income  of the Census and Statistics 
Department, HKSARG (2011-2013). 
  
                                               
6 Statistics on bilateral stock and flow are not available from Hong Kong, China's sources. WT/REG356/1 
 
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  Chart 1.6 Chile: FDI stock (2011-2013) and flow (2001-2013) with Hong Kong, China 
and the world 
0.00.20.40.60.81.01.2
2011 2012 2013Chile FDI stock with Hong Kong, China
2011-2013
(US$ Billion) 
Outward Inward
050100150200250300350400
2011 2012 2013Chile FDI flow with Hong Kong, China
2011-2013
(US$ Million) 
Outward
Inward
050100150200250
2001 2003 2005 2007 2009 2011 2013Chile FDI stock with world
2001-2013
(US$ Billion) 
Outward Inward
051015202530
2001 2003 2005 2007 2009 2011 2013Chile FDI flow with world
2001-2013
(US$ Billion) 
Outward Inward
 
Source: UNCTAD and Chilean authorities (2011-2013). 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed on 7 September 2012 and entered into force on 9 October 2014. 
The Parties notified the goods and services aspe cts of the Agreement to the WTO on 15 October 
2014 in document WT/REG356/N/1-S/C/N/773. The notification was made pursuant to 
Article XXIV:7(a) of GATT 1994 for goods, and to Article V:7(a) of GATS for services. The text of 
the Agreement, together with its annexes, is available on the Parties' official websites: 
Hong Kong, China : 
http://www.tid.gov.hk/english/trad e_relations/hkclfta/index.html  
Chile : 
http://www.direcon.gob.cl /acuerdos-comerciales/  
 
2.2.  According to Article 1.1, the Agreement establishes a free trade area based on Article XXIV of the GATT 1994 and Article V of the GATS. 
2.2  Structure of the Agreement 
2.3.  The Agreement is composed of 19 Chapters. It includes 17 annexes related to specific 
provisions of the Agreement, including the Parties' tariff elimination schedules and lists of specific commitments. Box 2.1 below summarizes the structure of the Agreement. A Memorandum of WT/REG356/1 
 
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  Understanding on Labour Cooperation between Hong  Kong, China and Chile was also concluded by 
the Parties separately but alongside the Agreement.  
Box 2.1 Structure of the Agreement 
Chapters Title/description 
Preamble  
Chapter 1 Initial provisions 
Chapter 2 General definitions and interpretations 
Chapter 3 Trade in goods 
Chapter 4 Rules of origin 
Chapter 5 Customs procedures and cooperation 
Chapter 6 Sanitary and Phytosanitary measures 
Chapter 7 Technical barriers to trade 
Chapter 8 Trade remedies 
Chapter 9 Government procurement 
Chapter 10 Establishment 
Chapter 11 Trade in services 
Chapter 12 Financial services 
Chapter 13 Competition 
Chapter 14 Environment 
Chapter 15 Transparency 
Chapter 16 Administration 
Chapter 17 Dispute Settlement 
Chapter 18 Exceptions 
Chapter 19 Final provisions 
Source: WTO Secretariat based on the Agreement. 
3  PROVISIONS ON TRADE IN GOODS 
3.1.  Besides provisions of general application, Chapters 3 through 8 of the Agreement contain 
disciplines applicable specifically to trade in goods.  
3.2.  The Agreement establishes a Committee on Trade in Goods to consider any matter arising 
under Chapters 3, 4, 5 and 8. Specific Sub-Committees are established to handle issues under 
Chapters 6 and 7. 
3.1  Import duties and charges,  and quantitative restrictions 
3.3.  The Parties agree that fees, charges, formalities and requirements imposed in connection 
with trade in goods shall be consistent with their obligations under GATT 1994.  
3.4.  Except as otherwise provided in the Agreement, neither Party shall adopt or maintain any 
non-tariff measures on the importation of any good of the other Party except in accordance with 
Article XI of GATT 1994 and its interpretative no tes and under the condition that such measures 
may not create unnecessary obstacles to trade between the Parties.7 
                                               
7 The covered non-tariff measures include: (i) impo rt price requirements, except as permitted in 
enforcement of countervailing and antidumping orders and undertakings; or (ii) import  licensing conditioned on 
the fulfilment of a perfo rmance requirement.  WT/REG356/1 
 
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  3.5.  As an exception to the prohibition of import restrictions, Chile may maintain measures 
concerning the import of used vehicles, as provided in Law N° 18.483 or its successor.  
3.1.1  General provisions 3.6.  The Parties grant each other national trea tment in accordance with Article III of GATT 1994 
and its interpretative notes, which are incorpor ated into and made part of the Agreement, mutatis 
mutandis (Article 3.3). 
3.1.2  Liberalization of trade and tariff lines 
3.7.  According to Article 3.4, the Parties agree to eliminate customs duties on each other's 
originating goods at the date of the entry into  force of the Agreement, except as otherwise 
provided in the Agreement and subject to each Party's tariff schedule in Annex 3.4. The base rate in connection with the elimination or reduction programme is defined in Annex 3.4. Moreover, 
neither Party may increase or adopt any existing or new customs duty on an originating good of 
the other Party. 
3.8.  If a Party reduces its applied MFN custom s duty rate after the entry into force of the 
Agreement and before the end of the tariff elimination period, the tariff schedule in Annex 3.4 of 
that Party shall apply with respect to the new MFN customs duty. 
3.9.  Acceleration of the reduction or elimination of customs duties set out in the Parties' tariff 
schedules may be agreed between the Parties and the Agreement shall consequently be subject to 
amendment procedures. 
3.10.  According to Article 3.7, Chile may maintain its price band system as established under its 
Law N° 18.525 or succeeding system for products covered by the law
8, to be applied in a manner 
consistent with Chile's rights and obligations under the WTO. 
3.1.3  Liberalization schedules 3.11.  Annex 3.4 to the Agreement (tariff elimination schedules) is divided in two parts (Section 1, 
containing Chile's tariff schedule, and Section 2,  containing Hong Kong, China's tariff schedule).  
3.12.  In the case of Hong Kong, China, customs duties on all goods classified under HS Chapters 
1 to 97 were eliminated at the date of entry into force of the Agreement. This did not in practice 
constitute a change (though de jure  it does) as all applied tariffs are duty free on an MFN basis.  
3.13.  Chile's tariff elimination programme identifi es three categories. Category "Y0", which applies 
to most tariff lines, foresees the immediate elim ination of customs duties from the date of entry 
into force of the Agreement. Category "Y3" contai ns tariff lines which shall become duty free after 
being reduced in three equal annual stages, the first reductions having started at the entry into 
force of the Agreement. For these products, custom s duties will be fully eliminated on 1 January 
2016.
9 The last category ("EXCL") covers products that are not subject to tariff elimination.  
3.1.3.1  Hong Kong, China 
3.14.  Hong Kong, China's applied tariff in 2014 consisted of 7,341 lines at the eight-digit level 
(HS 2012). The entire tariff is duty free on an MFN basis. Thus all of Chile's exports to Hong Kong, 
China during 2011-2013 (US$463.7 million) had duty free access to Hong Kong China's market.  
                                               
8 The products covered by Chile's price band sy stem, all excluded from Chile's tariff elimination 
commitments, are listed in Annex 2 to this factual presentation. 
9 For most tariff lines, the base rate is set at 6% . For some wheat products, including some flour, the 
base rate is set at 31.5%. For some suga r products, the base rate is set at 98%. WT/REG356/1 
 
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  3.1.3.2  Chile 
3.15.  Chile's applied tariff in 2014 consisted of 7,785 lines at the eight-digit level (HS 2012). 
0.53% of the rates were non-ad valorem (41 compound duties, related in most part to products 
subject to the price band mechanism) and 7,744 rates were ad valorem .  
3.16.  Table 3.1 shows tariff elimination commitm ents by Chile under the Agreement. Before the 
entry into force of the Agreement, 35 lines were duty free on an MFN basis, representing 0.4% of Chile's total tariff, corresponding to a negligible part of Chile's total imports from Hong Kong, 
China during 2011-2013. Following the entry into fo rce of the Agreement, an additional 6,817 lines 
(87.6% of Chile's tariff) became duty-free for imports from Hong Kong, China, corresponding to 85.4% of imports by value from Hong Kong, Chin a. A further 751 tariff lines shall be subject to 
duty free treatment in 2016, representing 9.6% of Chile's total tariff, and corresponding to 11.2% 
of its imports from Hong Kong, China. At the en d of the implementation period (2016), a total of 
97.3% of Chile's tariff, corresponding to 96.6% of  its imports from Hong Kong, China, shall be 
liberalized. 182 tariff lines (corresponding to 2.3% of Chile's tariff) will remain dutiable once the 
Agreement is implemented, representing 3.4% of Chile's imports from Hong Kong, China in 
2011-13.  
Table 3.1: Chile 
Tariff elimination commitments under the Ag reement 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 Hong 
Kong, China 
(2011-2013) 
US$ million  % of Chile's total 
imports from  
Hong Kong, China 
2011-2013 
MFN duty free (2014) 35 0.4 0.0 0.0 
2014 6,817 87.6 24.8 85.4 
2016 751 9.6 3.2 11.2 
Remain dutiable 182 2.3 1.0 3.4 
Total 7,785 100.0 29.0 100.0 
Note: Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data  from Chile authorities and WTO-IDB. 
 
3.17.  Table 3.2 shows Chile's tariff elimination, by HS section with regard to imports from Hong 
Kong, China. The 182 lines that remain subject to duties once the tariff elimination programme is 
fully implemented by Chile at the end of the tran sition period (2016), are found in sections II 
(vegetable products)10, IV (prepared food)11, V (minerals), VI (chemicals), XI (textiles and textiles 
articles), XIII (articles of stone), XV (base metals and base metals products), and XVII (transport 
equipment) with final average preferential tariffs identical to the MFN applied rate (6%).12  
Table 3.2 Chile: Tariff elimination und er the Agreement, by HS Section  
HS 
Section MFN 
average
% No. of 
lines Duty-free 
lines under 
the  
MFN 2014 Number of duty-free 
lines under the 
Agreement Remain 
dutiable Avg. Final Tariff 
(Dutiable) 
2014 2016 
I 6.0 742  742    
II 6.0 704  660 3 41 6.0 
III 6.0 68  68    
IV 6.0 464  446  18 6.0 
V 6.0 195  190 3 2 6.0 
VI 6.0 1,219  1,182 37   
VII 6.0 295  237 52 6 6.0 
VIII 6.0 74  74    
IX 6.0 137  85 52   
X 5.9 200 4 77 119   
XI 6.0 949  628 258 63 6.0 
                                               
10 Including 34 HS (8-digit) lines covere d by Chile's price band mechanism. 
11 Including 7 HS lines covered by  Chile's price band mechanism. 
12 Tariff lines that remain dutiable can be found under HS Chapters 10, 11, 17, 25, 51, 54, 55, 60-63, 
69, 70, 73, 76, and 83-85. WT/REG356/1 
 
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  HS 
Section MFN 
average
% No. of 
lines Duty-free 
lines under 
the  
MFN 2014 Number of duty-free 
lines under the 
Agreement Remain 
dutiable Avg. Final Tariff 
(Dutiable) 
2014 2016 
XII 6.0 60  29 31   
XIII 6.0 166  127 36 3 6.0 
XIV 6.0 56  56    
XV 6.0 613  521 59 33 6.0 
XVI 6.0 1,042 2 993 31 16 6.0 
XVII 5.5 326 29 263 34   
XVIII 6.0 247  247    
XIX 6.0 21  21    
XX 6.0 200  164 36   
XXI 6.0 7  7    
Total 6.0 7,785 35 6,817 751 182 6.0 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 The tariff rates for the 41 excluded tariff lines13 are MFN applied duties as of entry into force, instead 
of the base rates containing the WTO bound rates. This process is in accordance with the 
methodology used by the Secretariat across all factual presentations where it aims to assess the margins of preference in reference to th e MFN duties as of entry into force. 
Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on  data from Chile authorities. 
 
3.1.4  Tariff rate quotas 
3.18.  Neither Party makes commitment with respect to tariff rate quotas. 
3.2  Rules of origin 
3.19.  The rules of origin are set out in Section 1 of Chapter 4. Section 2 of the same Chapter lays 
down operation procedures. Annex 4.2 contains the product specific rules of origin. Annex 4.15 
specifies the form to be used  for declaration of origin.  
3.20.  A good is considered as an originating good if it:  
a. is wholly obtained or produced in the Area of a Party (as described in Article 4.4);  
b. is produced entirely in the Area of one or both Parties exclusively from originating 
materials from one or both Parties; or 
c. is produced in the Area of one or both Parties using non-originating materials that 
conform to a change in tariff classification (CTC) requirement, a regional value content 
(RVC) requirement (as provided for in Article 4.514) or other requirements as specified in 
Annex 4.2 to the Agreement; and 
d. meets the other applicable provisions of Chapter 4. 
3.21.  The product-specific requirements for qu alifying transformations are specified, at the 
HS Chapter level, in Annex 4.2 to the Agreement. While a change in Chapter, or Heading, classification constitutes the relevant product spec ific rule for goods in Chapters 1 through 19, 22 
                                               
13 1001.9100, 1001.9911, 1001.9912, 1001.9913, 1001.9919, 1001.9921, 1001.9922, 1001.9923, 
1001.9929, 1001.9931, 1001.9932, 1001.9933, 1001.9939, 1001.9941, 1001.9942, 1001.9943, 1001.9949, 
1001.9951, 1001.9952, 1001.9953, 1001.9959, 1001.9961, 1001.9962, 1001.9963, 1001.9969, 1001.9971, 1001.9972,1001.9973, 1001.9979, 1001.9991, 1001.9992, 1001.9993, 1001.9999, 1101.0000, 1701.1200, 
1701.1300, 1701.1400, 1701.9100, 1701.9910, 1701.9920 and 1701.9990, all subject to Chile's price band 
mechanism. 
14 The formula for calculating the regional valu e content (RVC) is described in Article 4.5. WT/REG356/1 
 
- 15 - 
 
  and 24 (with alternative RVC rules applicable to Chapters 9, 15 and 24), RVC15 is the product 
specific rule applicable to all the other Chapters. 
3.22.  A good that does not undergo a change in tariff classification pursuant to Annex 4.2, and if 
the value of all non-originating materials does no t exceed 10% of the FOB value of the good, is 
nonetheless classified as an originating good, provided it meets all the other applicable 
requirements of Chapter 4 (Article 4.8).  
3.23.  Minimal operations or processes are described in Article 4.7.  
3.24.  Accumulation of origin is governed by the provisions of Article 4.6, which states that goods 
or materials originating in the Area of a Party, in corporated into a good in the Area of the other 
Party, shall be considered to originate in the Area of the other Party.  
3.25.  Section 1 of Chapter 4 also contains, in Articles 4.9 through 4.13, disciplines on direct 
consignment; treatment of packing materials and containers; accessories, spare parts, tools and 
instructional or information material; indirect materials; and identical and interchangeable materials. 
3.26.  Section 2 of Chapter 4 contains, in Articles 4.14 through 4.23, detailed disciplines related to 
operational procedures, such as treatment of goods for which preference is claimed; declaration of 
origin; exceptions from declaration of origin; records; compliance with direct consignment; non-
Party invoicing; verification of origin; exporter or producer visit; denial of preferential tariff 
treatment; and refund of import duties.  
3.3  Export duties and charges,  and quantitative restrictions 
3.27.  Except as otherwise provided in the Agr eement, neither Party shall adopt or maintain any 
non-tariff measures on the export of any good destined for the Area of the other Party except in 
accordance with Article XI of GATT 1994 and its in terpretative notes and under the condition that 
such measures may not create unnecessary obstacles to trade between the Parties.
16 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 
3.28.  Chapter 6 covers SPS. The Parties reaffirm their rights and obligations with respect to each 
other under the WTO SPS Agreement (Article 6.4) and confirm their commitment to implementing the transparency provisions in Article 7 and Annex B of the WTO SPS Agreement as well as 
relevant Decisions and Recommendations on tran sparency adopted by the WTO (Article 6.5). 
Notifications shall be made through the contact points
17 established under Article 6.9. 
3.29.  Articles 6.6 and 6.7 build on the correspon ding provisions under the WTO SPS Agreement in 
relation to equivalence and adaptation to regional conditions.  
3.30.  The Parties agree to cooperate to facilitate the implementation of Chapter 6 (Article 6.8) 
and to consult on any SPS matter. These consultati ons (Article 6.11) shall be without prejudice to 
the rights and obligations of the Parties und er the Agreement's dispute settlement chapter 
(Chapter 17, see below) or under the WTO Dispute Settlement Understanding. 
3.31.  A Sub-Committee on Sanitary and Phytosanitary measures is established by Article 6.10. 
                                               
15 A floor of RVC is set at 40% for most Chapters, when applicable. RVC is set at 50% in relation to 
products of Chapters 9, 39, 61 through 64, 72, 74, 76, 83 through 85, 87, 89, and 94. 
16 The covered non-tariff measures include: (i) expo rt price requirements; or (ii) voluntary export 
restraints.  
17 The Parties' competent authorities for SPS matters are identified in Annex 6.9.1 to the Agreement and 
the contact points identified in Annex 6.9.2 to the Agreement. WT/REG356/1 
 
- 16 - 
 
  3.4.1.2  Technical barriers to trade 
3.32.  Chapter 7 covers TBT with the objective to increase and facilitate trade by preventing and 
eliminating unnecessary obstacles to trade and enhancing bilateral cooperation in accordance with the rights and obligations of the Parties with respect to the WTO TBT Agreement, which is 
reaffirmed by the Parties (Article 7.4). Purchasing specifications prepared in the context of 
government procurement are not subject to Chapter 7 but are covered under Chapter 9 (government procurement).  
3.33.  The Parties agree to use international standards, guides and recommendations, or the 
relevant parts of them as a basis for their technical regulations and related conformity assessment procedures where such standards, guides and recommendations exist, except when they are 
ineffective or inappropriate to fulfil legitimate objectives, as provided for in Articles 2 and 5 and 
Annex 3 of the WTO TBT Agreement. When implementi ng this principle, the Parties shall base their 
determination on the principles set out in relevant Decisions and Recommendations adopted by the WTO Committee on TBT (Article 7.5). 
3.34.  In relation to equivalence of technical regulations (Article 7.7), conformity assessment 
procedures (Article 7.8), transparency (Article 7.9), and technical cooperation (Article 7.10), the 
Agreement builds on corresponding provisions in  the WTO TBT Agreement. The Parties also agree 
to work cooperatively in the fields of standards, technical regulations and conformity assessment 
procedures with a view to facilitating trade between them (Article 7.6).  
3.35.  The Parties may conclude or amend the Annexes to Chapter 7 setting out agreed principles 
and procedures relating to technical regulations and conformity assessment procedures applicable 
to trade between them (Article 7.12). 
3.36.  A Sub-Committee on technical barriers to trade is established and contact points for TBT 
related matters set up (Article 7.11).  
3.4.2  Safeguard mechanisms 
3.4.2.1  Global safeguards 3.37.  The Parties maintain their rights and obligations under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards (Article 8.2). The Ag reement does not confer any additional rights 
or obligations on the Parties with regard to actions taken pursuant to the relevant WTO provisions. The Agreement foresees the prompt notification to the other Party of the initiation by a Party of any global safeguard investigation and the reasons for initiation.  
3.4.2.2  Bilateral safeguards 
3.38.  The Agreement does not foresee the possibility for the Parties to activate bilateral safeguard 
measures. 
3.4.2.3  Measures to safeguard the balance of payments (BOP) 
3.39.  In case of serious balance of payments an d external financial difficulties or under threat 
thereof, a Party may adopt or maintain restrictive measures in accordance with GATT 1994 and 
the WTO Understanding on the Balance-of-Payment Provisions of the GATT 1994 (Article 18.4). 
The Parties shall, however, endeavour to avoid the application of such measures, which, if applied, shall be non-discriminatory and of limited duration  and shall not go beyond what is necessary to 
remedy the balance of payments and external fina ncial situation. In determining the incidence of 
restrictions adopted or maintained, each Party may give priority to economic sectors which are 
more essential to its economic development. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. Notification obligations as well as 
consultation procedures are established. 
 
 
 WT/REG356/1 
 
- 17 - 
 
  3.4.3  Anti-dumping and countervailing measures 
3.40.  In relation to antidumping measures, the Parties maintain their rights and obligations under 
Article VI of GATT 1994 and the WTO Agreement on the implementation of Article VI of GATT 1999 
(Article 8.3). While not conferring any additional rights or obligations on the Parties with regard to 
actions taken pursuant to the relevant WTO provisions, the Agreement tightens the deadlines for 
the provision of properly documented applications from an industry for the initiation of an antidumping investigation.  
3.41.   With regard to countervailing measures, the Parties maintain their rights and obligations 
under Article VI of GATT 1994 and the WTO SCM Agr eement (Article 8.1). The Agreement does not 
confer any additional rights or obligations on the Parties with regard to actions taken pursuant to the relevant WTO provisions but strengthens transparency obligations and shortens deadlines for 
consultations.  
3.4.4  Subsidies and State-aid 3.42.  The rights and obligations of the Parties regarding subsidies shall be governed by Article XVI 
of GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures (Article 3.8). 
Moreover, the Parties agree not to introduce or maintain any forms of export subsidy on any 
agricultural good destined for the Area of the other Party (Article 3.9). 
3.4.5  Customs-related procedures 
3.43.  While customs-related procedures are contained in other parts of the Agreement
18, Chapter 
5 also covers customs procedures and cooperation. 
3.44.  On facilitation (Article 5.3), the Agreement establishes that customs procedures and 
practices shall be predictable, consistent, transpar ent, and trade facilitating. The Parties' customs 
procedures shall, where possible, conform to the standards and recommended practices of the World Customs Organization, including those of the Revised Kyoto Convention. Each Party shall 
provide one or more focal points, electronic or otherwise, through which traders may submit all 
information as required for imports of goods.  
3.45.  On customs valuation (Article 5.4), the pr ovisions of Article VII of GATT 1994 and the WTO 
Customs valuation agreement are reaffirmed. 
3.46.  Chapter 5 also provides for advance rulings by customs authorities (Article 5.6); the use of 
automated systems to support customs operations (Article 5.7); the adoption of procedures to expedite the clearance of express consignm ents while maintaining appropriate control 
(Article 5.8); the adoption or maintenance of procedures allowing goods to be released within 
48 hours of arrival, though with some exceptions (Article 5.9); and the administration of customs 
procedures so as to facilitate the clearance of low-risk goods and focus on high-risk goods 
(Article 5.10). Chapter 5 also disciplines the Parties' review and appeal of customs administrative 
rulings, determinations or decisions (Article 5.11); organizes customs cooperation between the Parties (Article 5.12); and establishes rules on the publication of customs laws and administrative 
procedures and the designation of enquiry points for customs matters (Article 5.13). 
3.5  Sector specific provisions on trade in goods 3.47.  There are no sector specific provisions on trade in goods in the Agreement. 4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
4.1  Scope and definitions 
4.1.  Chapter 11 addresses trade in services, while Chapter 12 covers financial services. Both 
chapters apply to measures taken by the Partie s' central, regional or local governments and 
authorities as well as by non-governmental bodies to which power is delegated by governmental 
                                               
18 For instance, in Chapter 4 on rules of origin. WT/REG356/1 
 
- 18 - 
 
  authorities. All four modes of supply, including the provision of services through commercial 
presence in the Area of the other Party, are covered by the Parties' commitments under both chapters. Chapter 11 however does not apply to  financial services (which are covered by 
Chapter 12); air transport services other than aircraft repair and maintenance services, the selling 
and marketing of air transport services, and co mputer reservation system services. Moreover, 
nothing in Chapters 11 and/or 12 shall be construed to impose any obligations with respect to government procurement; subsidies; measures affecting natural persons seeking access to the 
employment market of a Party; or measures regarding citizenship, nationality, residence or 
employment on a permanent basis. Chapter 12 does not apply to activities conducted by a central 
bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate 
policies; activities forming part of a statutory system of social security or public retirement plans; 
and other activities conducted by a public entity, for the account, or with the guarantee, or using 
the financial resources, of the Government.  
4.2.  Three years after the entry into force of the Agreement, a review of Chapter 11 (trade in 
services) may take place taking into account developments and regulations on trade in services of 
the Parties as well as the progress made at the WTO and other specialized fora. 
4.3.  While issues related to Chapter 11 are handled by the Free Trade Commission (see below), 
the supervision of Chapter 12 (financial services) is carried out by a Committee on Financial 
Services
19 established under Article 12.11. In relation to financial services, consultations between 
the Parties regarding any matter arising under Chap ter 12 may be requested (Article 12.12), while 
disputes arising under Chapter 12 shall be settled in accordance with Chapter 17 (dispute 
settlement) and with the specifications in Article 12.13.  
4.2  Denial of benefits 4.4.  Under Article 11.11, a Party may deny the benefits of Chapter 11 to service suppliers of the 
other Party where the service is being supplied by a juridical person that is owned or controlled by 
persons of a third-party or of the denying Part y and the juridical person has no substantive 
business operation in the Area of the other Party. There is no specific provision on denial of 
benefits under Chapter 12 (financial services).  
4.3  General provisions on trade in services 4.3.1  National treatment and MFN 4.5.  Under Article 11.3, which replicates the GATS  obligations, national treatment is granted for 
the sectors for which commitments are listed in An nex 11.6 and subject to the recorded conditions 
and qualifications. Formally identical or formally different treatment
20 accorded by a Party to like 
services and services suppliers from the other Party may be considered to meet the national 
treatment requirements. In relation to financial services, the same approach is contained in 
Article 12.4 and the Parties' specific commitments related to financial services are contained in Annex 12.5. 
4.6.  The Agreement does not contain any MFN specific type provision. 
                                               
19 The Parties' authorities responsible for financial serv ices are, for Chile: the Ministry of finance; and, 
for Hong Kong, China: the Financial Services and the Treasury Bureau, as well as the Trade and Industry Department. 
20 Formally identical or formally different treatment shall be considered to be less favourable if it 
modifies the conditions of competition in favour of services or service suppliers of the party compared to like services or service suppliers of the other Party. WT/REG356/1 
 
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  4.3.2  Market access 
4.7.  The Parties grant each other access to their respective markets for their services and service 
suppliers as provided for under the terms, limitations21 and conditions specified in their Schedules 
set out in Annex 11.6 to the Agreement (Article 11.4). The same is the case for financial services 
in Article 12.3 and the Parties' specific commitments for financial services are in Annex 12.5. 
4.3.3  Commercial presence 4.8.  The Agreement defines "commercial presence" as any type of business or professional 
establishment, including through the constitution, acquisition or maintenance of a juridical person; 
or the creation or maintenance of a branch or a re presentative office, within the Area of a Party for 
the purpose of supplying a service. Commitments on commercial presence (as defined in Article 11.1) for market access and national treatment are set out in the Parties' schedules of 
commitments on Services (Annexes 11.6 and 12.5). 
4.3.4  Performance requirements 4.9.  The Agreement does not contain any specific  provision related to performance requirements. 
They are however covered by the national treatm ent obligations as under the GATS and through 
limitations and restrictions but also additional commitments in the Parties' schedules of specific commitments. Moreover, Articles 11.7 and 11.8 addr ess recognition of education and experience 
obtained, requirements met or licences or certification granted in relation to standards or criteria 
for the authorization, licensing or certification of service suppliers (see below under section 4.5.2). 
4.3.5  Senior Managers and Boards of Directors 4.10.  The Agreement does not contain specific provisions related to senior managers and boards 
of Directors. However, in their schedules of specific commitments, both Parties make commitments 
in relation to the provision of trade in services through mode 4. While Hong Kong, China's commitments define specifically what "senior manager" means and do not cover boards of 
directors, it is clarified in Chile's schedule that the category of senior and specialized personnel, 
covered by the commitments, does not include the members of the board of directors of a 
company established in Chile. 
4.3.6  Movement of natural persons 
4.11.  The Parties' commitments, and related restrictions and limitations, in connection with the 
temporary movement of natural persons are contained in the Parties Schedules of specific commitments (Annexes 11.6 and 12.5).  
4.12.  Under the GATS, Hong Kong, China's commitments on mode 4 are recorded in an 
attachment on "presence of natural persons" to its schedule of specific commitments. Under the 
Agreement, Hong Kong, China's undertakings are registered as horizontal commitments in 
Annexes 11.6 and 12.5. They build on the GATS commitments in particular for intra-corporate 
transferees (covering senior managers
22 and specialists). In addition to intra-corporate 
transferees, Hong Kong, China's commitments under the Agreement also cover the category of 
business visitors, as defined under the horizontal commitments. The conditions for temporary 
entry of the categories of personnel covered under the Agreement are also detailed in the horizontal commitments. Moreover, while, under the GATS, commitments on mode 4 are applicable only to some services sectors or su b-sectors, under the Agreement, the coverage is 
expanded.  
4.13.  In the case of Chile, commitments on mode 4 in its GATS Schedule are limited and only 
apply to senior and specialized personnel, with some limitations and under certain conditions. 
Chile's commitments under the Agreement largely build on its GATS commitments. It is clarified 
                                               
21 The typology of limitations and restrictions contained in Annex 11.6 is identical to the one defined in 
Article XVI of GATS. 
22 Hong Kong, China clarified that the definition of "senior managers" under the FTA covers both general 
managers and senior managers as used under Hong Ko ng, China's GATS schedule.  "senior managers" under 
the FTA is used generically to refer to the senior mana gement of an organization instead of a specific post. WT/REG356/1 
 
- 20 - 
 
  that senior and specialized personnel do not incl ude the members of the board of directors of a 
company established in Chile. As compared to its commitments under GATS, Chile expands the coverage of its commitments by including in the covered category natural persons seeking temporary entry for the purpose of participating in business meetings, performing market or 
investment studies, generating business contacts or participating in negotiations related to the 
supply of services in the future (including the setti ng up of a business or enterprise in Chile); and 
persons working in a senior position within a legal person, who are responsible for setting up in 
Chile a commercial presence of a services in specific circumstances described in Chile's schedule. 
4.4  Liberalization commitments 4.14.  Annex 11.6 is attached to Chapter 11 and contains the Parties' schedule of specific 
commitments on trade in services, while Annex 12.5 is attached to Chapter 12 and contains the 
Parties' specific commitments on financial services. Both annexes form an integral part of the 
Agreement.
23  
4.15.  In Annex 11.6 (trade in services), the Parties' schedules specify: terms, limitations and 
conditions of market access; conditions and qualifications for national treatment; undertakings 
relating to additional commitments; and where a ppropriate, the time-frame for the implementation 
of such commitments and the date of their entr y into force. While the Agreement contains the 
Parties' commitments with respect, inter alia , to national treatment and market access, additional 
commitments with respect to measures affecting trade in services not subject to scheduling under Articles 11.3 (national treatment) or 11.4 (market access), including those regarding qualifications, standards or licensing matters, may be negotiated between the Parties.
24 In relation 
to financial services, the Parties' schedules in Annex 12.5 specify: the terms, limitations and 
conditions of market access; and the conditions and qualifications for national treatment. 
4.16.  The Parties' commitments in the Agreement are largely modelled on the GATS with respect 
to the sectoral classification and the separation between the horizontal and sector specific 
commitments, following a "positive list" approach. They also generally build on their GATS commitments. As described below, for certain sect ors (and sub-sectors) coverage is enlarged, 
while, for a number of sectors (sub-sectors) already covered, new commitments are made and/or 
certain GATS limitations are not included.  
4.17.  The sections below compare the Parties'  liberalization commitments under Annexes 11.6 
and 12.5 to the Agreement and their GATS commitm ents in relation to all modes of supply. 
Following a comparison of MFN exemptions and horizontal commitments in the GATS and in the 
Agreement, Tables 4.1 and 4.2 summarize specific  commitments under the Agreement, by sector 
and sub-sector and compare them with the GATS commitments. Improvements over existing GATS 
commitments are either a reduction of the limitatio ns to market access and/or national treatment, 
a relaxation of the form of establishment under mode 3, and/or additional commitments. However, horizontal limitations in the GATS Schedule of Specific Commitments and in Annexes 11.6 and 
12.5 to the Agreement, as well as mode 4 commitments are, to a large extent, not fully reflected 
in the comparison. 
4.4.1   Hong Kong, China  4.4.1.1  Sector specific commitments 
4.18.  In its GATS schedule, Hong Kong, China took commitments in 68 out of 155 services 
sectors
25, leaving in particular education services, environmental services, and health-related and 
social services unbound. 
4.19.  It has no MFN exemptions under the GATS and the Agreement has no specific MFN 
provisions. 
                                               
23 Section 1 covers Chile's commitments and Sect ion 2 covers Hong Kong, China's commitments. 
24 Eventual additional commitments shall be in scribed in a Party's Schedule to Annex 11.6. 
25 Source: WTO country profile 2014. WT/REG356/1 
 
- 21 - 
 
  4.20.  Under the GATS, Hong Kong, China does not have horizontal commitments and/or 
limitations although as noted it has mode 4 related commitments in an attachment on the presence of natural persons. Under the Agreement, and irrespective of the possibility that it might 
be covered by the GATS or not, Hong Kong, China has some horizontal limitations covering market 
access and national treatment, for any measure with respect to the provision of certain public 
services (public law enforcement, ambulance services, correctional services and firefighting services) and certain social services established for a public purpose (in sectors such as: health, 
education, housing, training, transport, public utilities, social security, and social welfare). 
Hong Kong, China's list of commitments on the movement of natural persons is also listed under its horizontal commitments
26 in both Annexes 11.6 and 12.5. 
4.21.  The following section identifies some of the main sectoral differences between Hong Kong, 
China's GATS schedule and its sector-specific co mmitments under the Agreement. It focuses on 
differences between its commitments in the Agre ement and its GATS commitments and should be 
read in conjunction with Annexes 11.6 and 12.5 to the Agreement. 
Table 4.1 Hong Kong, China: comparison between the GATS and Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS Sectoral 
Commitments  
(except as 
indicated in the 
GATS horizontal 
commitments) FTA Sectoral 
Commitments 
 FTA Sectoral 
Commitments 
(as compared to 
the GATS 
commitments) 
1. Business services    
A. Professional Services Partial Partial Improved 
B. Computer and Related Services  Partial Partial Improved 
C. Research and Development Services  --- --- Similar 
D. Real Estate Services  Partial Full Improved 
E. Rental/Leasing Services without Operators  Partial Partial Improved 
F. Other Business Services Partial Partial Improved 
2. Communication services     
A. Postal services --- --- Similar 
B. Courier services Partial Partial Similar 
C. Telecommunication services  Partial Partial Improved 
D. Audiovisual services Partial Partial Improved 
3. Construction and related engineering services     
A. General construction work for buildings --- --- Similar 
B. General construction work for civil Engineering --- --- Similar 
C. Installation and assembly work  --- --- Similar 
D. Building completion and finishing work  Partial Partial Improved 
E. Other Partial Partial Improved 
4. Distribution services    
A. Commission agents' services --- --- Similar 
B. Wholesale trade services --- Partial New 
C. Retailing services Partial Partial Improved 
D. Franchising --- --- Similar 
5. Education services    
A. Primary education services --- --- Similar 
B. Secondary education services  --- --- Similar 
C. Higher education services  --- --- Similar 
D. Adult education --- --- Similar 
E. Other education services  --- --- Similar 
6. Environmental services    
A. Sewage services --- Full New 
B. Refuse disposal services --- Partial New 
C. Sanitation and similar services  --- Full New 
D. Other --- Full New 
7. Financial services    
A. All insurance and insurance-related services  Partial Partial Similar 
B. Banking and other financial services Partial Partial Improved 
8. Health related and social services    
A. Hospital services --- --- Similar 
B. Other Human Health Services --- --- Similar 
C. Social Services --- --- Similar 
D. Other --- --- Similar 
9. Tourism and travel related services     
                                               
26 See above Section 4.3.6 of this factual presentation. WT/REG356/1 
 
- 22 - 
 
  Sectors (CPC Classification) GATS Sectoral 
Commitments  
(except as 
indicated in the 
GATS horizontal 
commitments) FTA Sectoral 
Commitments 
 FTA Sectoral 
Commitments 
(as compared to 
the GATS 
commitments) 
A. Hotels and restaurants (including catering) Partial Partial Improved 
B. Travel agencies and tour operators services Partial Partial Improved 
C. Tourist guides services --- --- Similar 
10. Recreational and cultural and sporting 
services    
A. Entertainment services --- Partial New 
B. News agency services --- --- Similar 
C. Libraries, archives, museums and other cultural 
services Partial Partial Improved 
D. Sporting and other recreational services  --- --- Similar 
11. Transport services     
A. Maritime Transport Services Partial Partial Improved 
B. Internal Waterways Transport --- --- Similar 
C. Air Transport Services --- --- Similar 
D. Space Transport  --- --- Similar 
E. Rail Transport Services --- --- Similar 
F. Road Transport Services --- --- Similar 
G. Pipeline Transport  --- --- Similar 
H. Services auxiliary to all modes of transport  --- Partial Improved 
I. Other Transport Services  --- --- Similar 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered 
in the Table. 
Partial:  Commitments subject to some limitation(s) under market access or national treatment, under any of 
the three modes. 
Full: Commitments not subject to limitation(s) under market access or national treatment, under any of 
the three modes. 
---: No commitments. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly, in specific individual cases, with 
limited improvements and/or li mited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W/HKG), prepared by the 
Secretariat (in 2003) and Hong Kong, China's Sche dule annexed to the Agreement (Annexes 11.6 
and 12.5).  
4.4.1.2  Business services 
4.22.  Hong Kong, China's commitments under the Agreement build on its GATS commitments. 
Coverage is improved particularly in connection with professional services (architectural, engineering, urban planning, and veterinary services); real estate services, partially covered under 
GATS but fully covered under the Agreement; as well as a number of other business services. 
Several limitations and restrictions in the GATS are dropped under the Agreement. 
4.4.1.3  Communication services 
4.23.  While postal services remain unbound and the coverage of courier services remains partial, 
as under the GATS, some limitations on telecommunication services are not mentioned under the Agreement. In the audiovisual sector, coverage is improved to cover in particular motion picture 
projection services. Appendix II to Hong Kong, China's schedule contains additional commitments 
on regulatory principles applicable to basic telecommunications services and is identical to the Annex in the GATS schedule on specific commitments. WT/REG356/1 
 
- 23 - 
 
  4.4.1.4  Construction and related engineering services 
4.24.  Most subsectors under construction and related engineering services remain unbound, as 
under the GATS. However, improvements are made , through reduced limitations and restrictions, 
for building completion and finishing work and ot her construction and related engineering services. 
4.4.1.5  Distribution services 
4.25.  Commission agent's services and franchising remain unbound, as under the GATS. 
Wholesale trade services, also unbound under the GATS, are however covered, with some 
limitation, and coverage is improved for retailing services.  
4.4.1.6  Educational services 4.26.  The whole sector remains unbound, as under the GATS. 4.4.1.7  Environmental services 
4.27.  While the full sector is unbound under the GATS, sewage, certain refuse disposal and 
sanitation and similar services are fully covered under the Agreement without restrictions.  
4.4.1.8  Financial services 
4.28.  Hong Kong, China broadly matches its GATS commitments in insurance and insurance-
related services, though adjustments have been made  to the extent and nature of its reservations 
and commitments. With regard to banking services , there is some market access improvement in 
one of the banking sub-sectors under the Agreement.  
4.29.  Specific disciplines applicable to trade in financial services are contained in Chapter 12. 4.4.1.9  Health related and social services 4.30.  The whole sector remains unbound, as under the GATS. 
4.4.1.10  Tourism and travel related services 
4.31.  Tourist guide services remain unbound, as under the GATS, while coverage for hotels and 
restaurants (e.g. expansion of coverage to lodging services, restaurant and catering services), and 
for travel agencies and tour operator services is expanded, particularly for the provision of services 
through mode 1. 
4.4.1.11  Recreational, cultural and sporting services 
4.32.  Besides the new coverage of some entertainment services, unbound under the GATS, and 
the expanded coverage of library and archives se rvices under the Agreement, Hong Kong, China's 
GATS commitments are mirrored under the Agreement. 
4.4.1.12  Transport services 
4.33.  With the exception of some maritime transport services, for which some improvements are 
made particularly in connection with market access and national treatment granted for modes 1 and 2 and the expansion of coverage to freight fo rwarding and PSI services, the transport sector 
remains unbound under the Agreement, as under the GATS. WT/REG356/1 
 
- 24 - 
 
  4.4.2  Chile 
4.4.2.1  Sector specific commitments 4.34.  In its GATS schedule, Chile has commitments in 42 out of 155 services sectors
27 mainly on 
mode 3, with some commitments in modes 1 and 2 in telecommunications and tourism.  
4.35.  Chile's GATS MFN exemptions cover measures establishing dispute settlement procedures in 
bilateral treaties on the protection of investment; reciprocal measures on maritime transport – in particular freight; national treatment for suppliers  from signatories of the 1977 International Land 
Transport Convention; and national treatment for certain co-produced cinematographic works. 
There are no specific MFN provisions under the Agreement
28.  
4.36.  Under the GATS, Chile's horizontal limitations cover mode 3 (with other modes not being 
covered in most cases) with limitations on the form and modalities applicable to commercial 
presence and foreign investment, including on the repatriation of capital by foreign companies 
established in Chile. An economic needs test is applicable and residency required for foreign managers. Specialists are also subject to residency requirements. Chile has national treatment 
limitations in its GATS specific commitments for land ownership in border zones. Under the 
Agreement, Chile registers horizontal reservat ions for payments and transfers; the special 
investment regime covered by the Decree Law 600 (1974); original ethnic groups; commercial 
presence (covering only public corporations open or closed), private-limited companies, and 
subsidiaries; and the movement of natural persons.
29 
4.37.  The following section identifies some of the main differences, by sector, between Chile's 
GATS schedule and its sector-specific commit ments under the Agreement. It focuses on 
differences between the Agreement and its GATS commitments and. should be read with 
Annexes 11.6 and 12.5 to the Agreement. 
Table 4.2 Chile: comparison between the GATS  and Agreement specific commitments in 
trade in services  
Sectors (CPC Classification) GATS Sectoral 
Commitments  
(except as 
indicated in the 
GATS horizontal 
commitments) FTA Sectoral 
Commitments 
 FTA Sectoral 
Commitments 
(as compared to 
the GATS 
commitments) 
1. Business services    
A. Professional Services Partial Partial Improved 
B. Computer and Related Services  --- Partial New 
C. Research and Development Services  --- Partial New 
D. Real Estate Services  --- Full New 
E. Rental/Leasing Services without Operators  Partial Partial Similar 
F. Other Business Services Partial Partial Improved 
2. Communication services     
A. Postal services --- --- Similar 
B. Courier services --- --- Similar 
C. Telecommunication services  Partial Partial Improved 
D. Audiovisual services --- --- Similar 
3. Construction and related engineering services     
A. General construction work for buildings --- --- Similar 
B. General construction work for civil Engineering --- --- Similar 
C. Installation and assembly work  --- --- Similar 
D. Building completion and finishing work  --- --- Similar 
E. Other --- --- Similar 
4. Distribution services    
A. Commission agents' services --- --- Similar 
B. Wholesale trade services --- Full New 
C. Retailing services --- Partial New 
D. Franchising --- --- Similar 
5. Education services    
                                               
27 Source: WTO country profile 2014. 
28 Chile, nevertheless confirmed that the GATS MFN exemptions are applicable against Hong Kong, 
China's service providers. 
29 See above Section 4.3.6 of this factual presentation. WT/REG356/1 
 
- 25 - 
 
  Sectors (CPC Classification) GATS Sectoral 
Commitments  
(except as 
indicated in the 
GATS horizontal 
commitments) FTA Sectoral 
Commitments 
 FTA Sectoral 
Commitments 
(as compared to 
the GATS 
commitments) 
A. Primary education services --- --- Similar 
B. Secondary education services  --- --- Similar 
C. Higher education services  --- --- Similar 
D. Adult education --- --- Similar 
E. Other education services  --- --- Similar 
6. Environmental services    
A. Sewage services --- Partial New 
B. Refuse disposal services --- Partial New 
C. Sanitation and similar services  --- Partial New 
D. Other --- --- Similar 
7. Financial services    
A. All insurance and insurance-related services  Partial Partial Similar 
B. Banking and other financial services Partial Partial Similar 
8. Health related and social services    
A. Hospital services --- --- Similar 
B. Other Human Health Services --- --- Similar 
C. Social Services --- --- Similar 
D. Other --- --- Similar 
9. Tourism and travel related services     
A. Hotels and restaurants (including catering) Partial Full Improved 
B. Travel agencies and tour operators services Partial Partial Similar 
C. Tourist guides services Partial Partial Similar 
10. Recreational and cultural and sporting 
services    
A. Entertainment services --- --- Similar 
B. News agency services --- --- Similar 
C. Libraries, archives, museums and other cultural 
services --- --- Similar 
D. Sporting and other recreational services  --- Partial Improved 
11. Transport services     
A. Maritime Transport Services --- --- Similar 
B. Internal Waterways Transport --- --- Similar 
C. Air Transport Services Partial Partial Improved 
D. Space Transport  --- --- Similar 
E. Rail Transport Services --- --- Similar 
F. Road Transport Services --- --- Similar 
G. Pipeline Transport  --- --- Similar 
H. Services auxiliary to all modes of transport  --- --- Similar 
I. Other Transport Services  --- --- Similar 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered 
in the Table. 
Partial:  Commitments subject to some limitation(s) under market access or national treatment, under any of 
the three modes. 
Full: Commitments not subject to limitation(s) under market access or national treatment, under any of 
the three modes. 
---: No commitments. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly, in specific individual cases, with 
limited improvements and/or li mited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W /CHL), prepared by the 
Secretariat (in 2003) and Chile's Schedule annexe d to the Agreement (Annexes 11.6 and 12.5).  
4.4.2.1.1  Business services 
4.38.  Under the GATS, Chile has commitments for professional services, some rental and leasing 
services, and a number of other business services. Under the Agreement, the coverage for these 
sub-sectors as well as for other sub-sectors in business services (computer and related services, WT/REG356/1 
 
- 26 - 
 
  research and development services, and real estate services) is enlarged. The leasing of private 
automobiles without operator is not included under the Agreement although it is in Chile's GATS Schedule. In the case of real estate services, unbound under the GATS, Chile commits to full coverage without any reservation.  
4.4.2.1.2  Communication services 
4.39.  Like in the GATS, postal, courier, and audiovisual services remain unbound. With respect to 
telecommunication services, the partial coverage is improved, in particular for private leased 
circuits and some value-added services (electronic data interchange, and code and protocol 
conversation). The limitations registered for the whole sector as a headnote in Chile's GATS schedule of specific concession is replicated in its schedule attached to the Agreement. However, the basic telecommunications reference paper, whic h is part of Chile's GATS schedule, is not 
referenced under the Agreement. 
4.4.2.1.3  Construction and related engineering services 4.40.  The whole sector remains unbound, as under the GATS. 
4.4.2.1.4  Distribution services 
4.41.  Commission agents' services and franchising remain unbound, as under the GATS, while 
wholesale trade services and retailing services, also unbound under the GATS, are fully committed 
without reservation. 
4.4.2.1.5  Educational services 4.42.  The whole sector remains unbound, as under the GATS. 4.4.2.1.6  Environmental services 
4.43.  While the whole sector was unbound under the GATS, it is covered under the Agreement 
and is fully committed without limitation, though essentially under mode 2. 
4.4.2.1.7  Financial services 
4.44.  The financial services sector (bound under the GATS with some limitations) is included. 
Chile improves its coverage particularly for banking services, though maintaining a number of limitations and restrictions.  
4.45.  Specific disciplines applicable to trade in financial services are contained in Chapter 12. 
4.4.2.1.8  Health relate d and social services 
4.46.  The whole sector remains unbound, as under the GATS. 4.4.2.1.9  Tourism and travel related services 
4.47.  Improvements, essentially in terms of coverage  (for instance to include travel agencies), is 
made in particular for hotels and restaurants.  
4.4.2.1.10  Recreational, cult ural and sporting services 
4.48.  The sector is unbound under the GATS. Under the Agreement, sporting and other 
recreational services are partly committed, with so me limitation in relation to market access. The 
other sub-sectors remain unbound. WT/REG356/1 
 
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  4.4.2.1.11  Transport services 
4.49.  The sector remains unbound, as under the GATS, except for some auxiliary air transport 
services (selling and marketing of air transport services; aircraft repair and maintenance services; and computer reservation system services), which are fully committed without limitations.  
4.5  Regulatory provisions  
4.50.  While Articles 11.7 through 11.9 establish the regulatory framework for trade in services 
between the Parties (domestic regulation, recognit ion, and subsidies), Articles 12.6 through 12.10 
provide for regulatory provisions for trade in financial services (data processing in the financial 
services sector, effective and transparent regulation in the financial services sector, confidential information, prudential carve out, and recognition).  
4.5.1  Domestic regulation 
4.51.  In sectors where specific commitments are undertaken, each Party shall ensure that all 
measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner. Practical judicial, arbitral or administrative tribunals or 
procedures, which provide for the prompt review of, and where justified, appropriate remedies for 
administrative decisions affecting trade in services shall be maintained or instituted. The Parties shall aim to ensure that measures relating to qualification requirements and procedures, technical 
standards, and licensing requirements and proc edures are based on objective and transparent 
criteria and are not more burdensome than nece ssary to ensure the quality of the service. 
Licensing procedures shall not in themselves constitute restrictions.  
4.52.  Where qualification requirements and procedures, technical standards and licensing 
requirements are maintained by a Party, informat ion on technical standards and on requirements 
and procedures to obtain, renew or retain any licences or professional qualifications shall be given. Procedural provisions are also contained in Article 11.7. 
4.5.2  Recognition 
4.53.  In relation to authorisation, licensing or certification of service suppliers, education or 
experience obtained, requirements met, or licences or certification granted in the Area of the other 
Party may be recognized by a Party. Where a Party recognises, autonomously or by agreement or 
arrangement, the education or experience obtained, requirements met, or licences or certifications granted in the Area of a third-party, nothing in Chapter 11 shall be construed to require the Party to accord such recognition to the education or ex perience obtained, requirements met, or licences 
or certifications granted in the Area of the other Party. Adequate opportunity for one Party to 
negotiate its accession to a recognition agreement or arrangement or to negotiate a comparable one shall be provided by the other Party. A Part y shall 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 authorisation, licensing, or certification of services suppliers, or a disguised restriction on trade in services (Article 11.8). 
4.5.3  Subsidies 
4.54.  While Chapter 11 does not impose any obligation with respect to subsidies, the Parties shall 
review the issue of disciplines on subsidies related to trade in services in the light of any disciplines agreed under Article XV of GATS, with a view to the incorporation of such disciplines into the 
Agreement. 
4.5.4  Safeguards 4.55.  In case of serious balance of payments an d external financial difficulties or under threat 
thereof, a Party may adopt or maintain restrictive measures in accordance with Article XII.2 of the 
GATS, including on payments, transfers or capital movement (Article 18.4). The Parties shall however endeavour to avoid the application of such measures, which, if applied, shall be 
non-discriminatory and of limited duration and shal l not go beyond what is necessary to remedy 
the balance of payments and external financial situation. In determining the incidence of WT/REG356/1 
 
- 28 - 
 
  restrictions adopted or maintained, each Party may give priority to economic sectors which are 
more essential to its economic development. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. Notification obligations as well as consultation procedures are established. 
4.6  Other 
4.6.1  Investment 4.56.  The Parties agree to initiate negotiations on investment
30, upon the entry into force of the 
Agreement, in accordance with the terms of reference established by the Notes exchanged 
between them alongside the Agreement.31 
4.57.  In connection with investment, but outside of the scope covered by the Agreement under 
trade in services, Chapter 10 applies to establishment in all sectors with the exception of sectors 
covered by Chapter 11 (trade in services). Consequently, the establishment of commercial 
presence by service providers (as covered by the definition of mode 3 under GATS) is not covered 
by the provisions of Chapter 10. With this und erstanding, the chapter covers establishment, 
defined as the constitution, acquisition or maintenance of a juridical person; or the creation or 
maintenance of a branch or a representative office, within the Area of a Party for the purpose of performing an economic activity. Moreover, the ju ridical person of one Party established in the 
other Party, to qualify, shall engage in substantive business operations in either Party 
(Article 10.1). 
4.58.  Under Chapter 10, with respect to establishment, the Parties commit to grant national 
treatment to each other's' juridical and natural persons. This commitment applies to the sectors 
inscribed in each Party's schedule of specific commitments on establishment, in Annex 10.3, and 
subject to any conditions and qualifications set out therein.  
4.59.  Chile's schedule covers establishment in the following sectors, though with some limitations: 
mining and quarrying; manufacturing; and elec tricity, gas and water supply. Horizontal 
reservations are made for payments and transfers; special investment regime (in particular through Decree Law 600); the disposal of State land; the transfer or disposal of any interest in 
stock or asset held in an existing State-owned company or Government entity; the acquisition of 
bonds, treasury securities or any other type of debt instruments issued by the Central Bank of Chile or the Government of Chile; residence requirements related to the ownership of or investment in coastal lands by investors of Hong Kong, China; the acquisition of any of the rights 
or preferences granted to indigenous peoples; and the rights and preferences to socially or 
economically disadvantaged minorities.  
4.60.  Hong Kong, China's schedule covers establishment, with some limitations, in the following 
sectors: agriculture; forestry; fishing; and manufacturing, except for manufacture and storage of 
dutiable commodities and manufacture of optical discs and stampers. Horizontal reservations are recorded in Annex 10.3 with respect to the acquisition or ownership of land and properties in the 
Parties' Area; the privatisation or divestment of corporate entities or assets in government 
ownership; measures in respect of subsidies or grants, including government-supported loans, guarantees and insurance, that are not inconsistent with Hong Kong, China's obligations under the WTO agreement; measures in respect of government procurement that are not inconsistent with 
Hong Kong, China's obligations under Chapter 9 (government procurement); and measures in 
respect of taxation that are not inconsistent with Hong Kong, China's obligations under the WTO agreement.  
4.61.  Subject to Article 10.3 (national treatmen t), Chapter 10 does not prevent the Parties to 
regulate juridical and natural persons with respect to establishment (Article 10.4). 
                                               
30 The first round of investment nego tiation was held in February 2015. 
31 The texts of the exchange of notes between the Parties on negotiations on investment can be found 
at http://www.tid.gov.hk /english/trade_relations/hkclf ta/files/LetterOnInvestment.pdf   WT/REG356/1 
 
- 29 - 
 
  4.7  Sector specific provisions on trade in services 
4.7.1  Financial services 4.62.  In addition to the provisions of Chapte r 12 relating to national treatment and market 
access, complemented by the Parties' specific commitments on financial services, Article 12.6 
provides that each Party shall permit a financial service supplier of the other Party to transfer 
information in electronic or other form, into and out of its Area, for data processing where such processing is required in the ordinary course of business of such financial services supplier.
32 
Chapter 12 also contains provisions  on effective and transparent regu lation in the financial services 
sector (Article 12.7) and on confidential information (Article 12.8).  
4.63.  Nothing in Chapter 12 shall be construed to prevent a Party from adopting or maintaining 
reasonable measures for prudential reasons (Article 12.9). Moreover, a Party may recognise 
prudential measures of the other Party through harmonization or otherwise, based upon an 
agreement or arrangement or accorded autonomously (Article 12.10). Furthermore, a Party that is a party to a recognition agreement or arrangement with a third-party, whether future or existing, 
shall afford adequate opportunity for the other Party to negotiate its accession to such agreements 
or arrangements, or to negotiate comparable ones with it. When a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that such 
circumstances exist. 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 5.1.  In addition to the provisions on transparen cy in specific parts of the Agreement, Chapter 15 
contains general transparency disciplines. For the purpose of facilitating communication between 
them on any matter covered by the Agreement, the Parties have designated contact points
33 
(Article 15.2). The transparency provisions contained in Chapter 15 cover publication 
(Article 15.3); notification and provision of information (Article 15.4); administrative proceedings 
(Article 15.5); and review and appeal (Article 15.6). 
5.2.  Nothing in the Agreement shall require the Parties to disclose information that would impede 
law enforcement, is contrary to its laws or otherwise contrary to the public interest, or would 
prejudice the legitimate commercial interests of any economic operator. Disclosure of information is also addressed in Article 18.5. 
5.2  Current payments and capital movements 
5.3.  Though the Agreement does not contain spec ific provisions on current payments and capital 
movements, Chile's specific commitments contains  horizontal reservations related to payments 
and transfers with respect to the measures adopted or  to be adopted by the Central Bank of Chile.  
5.3  Exceptions 
5.4.  Exceptions are addressed in Chapter 18. 5.3.1  General exceptions 
5.5.  For the purposes of Chapters 3 through 8 (tra de in goods, rules of origin, customs procedures 
and cooperation, SPS, TBT, and trade remedies), Article XX of the GATT 1994 and its interpretative notes shall apply and are incorporated into and made part of the Agreement, mutatis mutandis  
(Paragraph 1 of Article 18.1). 
                                               
32 Such transfer of information shall take place in accordance with the domestic laws and regulations 
regulating the protection of individuals with respect to the transferring and processing of personal data of the 
Party out of whose Area the in formation is transferred.  
33 For Hong Kong, China: the Trade and Industry Department, or its succ essor. For Chile: the 
Directorate on Bilateral Economic Affairs of the General Directorate of International Economic Affairs, Ministry of Foreign Affairs, or its successor. WT/REG356/1 
 
- 30 - 
 
  5.6.  For the purposes of Chapters 10 to 12 (establishment, trade in services and financial 
s e r v i c e s ) ,  A r t i c l e  X I V  o f  G A T S  s h a l l  a p p l y  a n d  i s  i n c o r p o r a t e d  i n t o  a n d  m a d e  p a r t  o f  t h e  Agreement, mutatis mutandis  (Paragraph 2 of Article 18.1). 
5.3.2  Security exceptions 
5.7.  Article 18.2 replicates to a large extent the provisions contained in both Article XXI of GATT 
1994 and in Article XIV bis of the GATS.  
5.8.  Nothing in the Agreement shall apply to taxation measures. However, the rights and 
obligations of the Parties under any tax convention or other arrangement on taxation in force 
between them are reserved. In the event of incons istency relating to a taxation measure between 
the Agreement and any such convention or other arrangement on taxation, the latter shall prevail to the extent of the inconsistency (Article 18.3). Consultations between the Parties are foreseen in 
Article 18.3 and no procedures concerning taxation measures may be initiated under Chapter 17 
(dispute settlement). The national treatment provisio ns contained in Articles 3.3 (trade in goods) 
10.3 (establishment), 11.3 (trade in services) and 12.4 (financial services) shall apply to taxation 
measures to the same extent as Article III of GATT 1994 and the relevant provisions under the 
GATS respectively. 
5.9.  The Parties shall review, 2 years after the entry into force of the Agreement and at the 
request of either Party, their taxation measures with the purpose of improving the disciplines in 
Article 18.3. 
5.4  Accession and withdrawal 5.10.  The Agreement does not contain an accession clause.  
5.11.  Each Party may terminate the Agreement by notification to the other Party. The Agreement 
shall expire 180 days after the date of the notification (Article 19.7). 
5.5  Institutional framework 
5.12.  The Agreement establishes a Free Trade Commission (Article 16.1). Among the functions of 
the Commission are the review of the general functioning of the Agreement; the review, 
consideration, and decision taking related to the operation, application and implementation of the 
Agreement; and the supervision and coordination of the work of committees, working groups and 
contact points established under the Agreement. The Commission may also seek to resolve disputes that may arise regarding the interpretation, implementation or application of the Agreement (without prejudice to the disput e settlement mechanism in accordance with 
Chapter 17). Article 16.2 establishes procedures of the Commission. 
5.13.  The Committees and Sub-Committees established by the Agreement are summarized by 
Chart 5.1 below. WT/REG356/1 
 
- 31 - 
 
  Chart 5.1 Institutional Framework  established by the Agreement 
 
  
 
  
 
   
 
  
 
  
 
   
 
5.6  Dispute settlement 
5.14.  Chapter 17 contains rules for the settlement of disputes between the Parties in relation to 
their implementation of the Agreement. It provid es for forum shopping, at the discretion of the 
complaining Party, regarding the same matter arising under both the Agreement and the WTO Agreement (Article 17.2). The forum selected shall be used to the exclusion of the other. 
Article 17.4 provides for the use of good offices, conciliation and mediation to be undertaken 
voluntarily by the Parties if they so agree. 
5.15.  The dispute settlement process starts mandatorily by consultations between the Parties 
(Article 17.3). In case they fail to achieve a mutu ally satisfactory result, a Party is entitled to 
request the establishment of an arbitration panel (Article 17.5). The arbitration panel's standard 
terms of reference are defined in Article 17.6. Th e rules of procedure of the panel are set out in 
provisions on proceedings (Article 17.8), and on suspension or termination of proceedings 
(Article 17.9). In principle, the report of the arbitral panel shall, under Article 17.10, be drafted 
within 120 days after the date of its estab lishment (60 days in case of urgency).  
5.16.  The ruling of the panel shall be immediately, or within a reasonable period of time, complied 
with (Article 17.11). The arbitration panel may be requested to determine the length of the 
reasonable period of time for compliance, should th e Parties fail to agree. If the Party complained 
against notifies the complaining Party that it is impracticable, or the arbitral panel confirms that the Party complained against has failed, to eliminate the non-conformity with the Agreement as 
determined in the final report of the arbitral panel, the Party complained against shall, if so 
requested, enter into negotiations with the complaining Party with a view to reaching mutually satisfactory compensation (Art. 17.12). If there is  no agreement on satisfactory compensation, the 
complaining Party may suspend the application to the Party complained against of concessions or 
other obligations under the Agreement. Compensation or suspension of concessions shall be temporary measures.  
5.17.  Chart 5.2 below summarizes the main steps of the dispute settlement mechanism 
established by the Agreement. Free Trade Commission (Art. 16.1) 
Committee on Trade in Goods (Art. 3.11)  
Sub-committee on Sanitary and Phytosanitary Measures 
(Art. 6.10 ) 
Sub-committee on Technical Barriers to Trade  
(Art. 7.11) 
Committee on Procurement (Art. 9.20 ) 
Committee on Financial Services (Art. 12.11) Arbitration Panel(s) 
(Art. 17.5) 
Contact points  
 
 SPS (Art. 6.9) 
 TBT (Art. 7.11) 
 Environment (Art. 14.4) 
 Transparency (Art. 15.2) 
 
Source: WTO Secretariat based on the Agreement. WT/REG356/1 
 
- 32 - 
 
  Chart 5.2 Specific Dispute Settlement Me chanism established by the Agreement 
 
 
5.7  Relationship with other agreements concluded by the Parties 
5.18.  According to Article 1.2, nothing in the Ag reement shall derogate from the existing rights 
and obligations of either Party under the WTO Ag reement or any international agreement to which 
it is a party. In case of inconsistency with the Agreement, consultations between the Parties are 
foreseen. Should the WTO agreement(s) that the Pa rties have incorporated into the Agreement be 
amended, the Parties may consult each other on whether to amend the Agreement accordingly (Article 19.3).  
5.19.  Table 5.1 below shows the Parties RTAs, notified and non-notified, other than the 
Agreement. 
Table 5.1 Hong Kong, China and Chile: Part icipation in other RTAs (notified and 
non-notified in force), as of 5 June 2015 
RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
HONG KONG, CHINA 
EFTA - Hong Kong, China 01-Oct-12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Hong Kong, China - New Zealand 01-Jan-11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
China - Hong Kong, China 29-Jun-03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V Source: WTO Secretariat based on the Agreement. 
 Consultations (Art. 17.3)  
Establishment of an 
Arbitration Panel  
(Art. 17.5) 
Proceedings  
(Art. 17.6 – 17.9) 
Report of 
Arbitration Panel (Art. 17.10)  
Implementation 
(Temporary) suspension of 
benefits by complaining 
Party (Art. 17.12 §2) Review of compliance  
(Art. 17.11 §4) Non-implementation Determination of the 
length of "reasonable 
period" for 
implementation 
(Art. 17.11 §3) 
Compliance Non-compliance Negotiation of 
(temporary 
compensation  
(Art. 17.12 §1) 
Ruling by the  
Arbitration Panel  
(Art. 17.12 §7) Good Offices, 
Conciliation or 
Mediation  
(Art. 17.4) 
or WT/REG356/1 
 
- 33 - 
 
  RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
CHILE 
Chile - Viet Nam 01-Jan-14 Goods 2015 GATT Art. XXIV 
Chile - Nicaragua 
(Chile - Central America) 19-Oct-12 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Chile - Malaysia 25-Feb-12 Goods 2013 GATT Art. XXIV 
Turkey - Chile 01-Mar-11 Goods 2011 GATT Art. XXIV 
Chile - Guatemala 
(Chile - Central America) 23-Mar-10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Chile - Colombia 08-May-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Australia - Chile 06-Mar-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Peru - Chile 01-Mar-09 Goods & Services  2011 GATT Art. XXIV & GATS Art. V 
Chile - Honduras 
(Chile - Central America) 19-Jul-08 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Panama - Chile 07-Mar-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Chile - Japan 03-Sep-07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Chile - India 17-Aug-07 G oods 2009 Enabling Clause 
Chile - China 01-Oct-06 
01-Aug-10 Goods 
Services 2007 
2010 GATT Art. XXIV  
GATS Art. V 
Trans-Pacific Strategic Economic 
Partnership 28-May-06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
EFTA - Chile 01-Dec-04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea - Chile 01-Apr-04 Goods & Se rvices 2004 GATT Art. XXIV & GATS Art. V 
United States - Chile 01-Jan-04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
European Union - Chile 01-Feb-03 
01-Mar-05 Goods & Services 2004 
2005 GATT Art. XXIV & GATS Art. V 
Chile - El Salvador 
(Chile - Central America) 01-Jun-02 Goods  
Services 2004 
2004 GATT Art. XXIV 
GATS Art. V 
Chile - Costa Rica  
(Chile - Central America) 15-Feb-02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Chile - Mexico 01-Aug-99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada - Chile 05-Jul-97 Goods & Services 1997 GATT Art. XXIV & GATS Art. V 
Global System of Trade 
Preferences among Developing 
Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Latin American Integration 
Association (LAIA) 18-Mar-81 Goods 1982 Enabling Clause 
Protocol on Trade Negotiations 
(PTN) 11-Feb-73 Goods 1971 Enabling Clause 
LAIA - Accession of Panama 03-May-12 Goods Not notified 
Chile - Ecuador  
[LAIA, AAP.CE N°65] 25-Jan-10 Goods Not notified 
Cuba - Chile  
[LAIA,AAP.CE N°42] 27-Jun-08 Goods Not notified 
MERCOSUR - Chile  
[LAIA, AAP.CE N°35] 01-Oct-96 Goods Not notified 
Chile - Bolivia  
[LAIA, AAP.CE N°22] 06-Apr-93 Goods Not notified 
Chile - Venezuela  
[LAIA, AAP.CE N°23] 02-Apr-93 Goods Not notified 
Chile - Argentina  
[LAIA, AAP.CE N°16] 02-Aug-91 Goods Not notified 
LAIA - Seeds [AAP.AG N°2] 07-Jun-93 Goods Not notified 
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7] 28-Jul-01 Goods Not notified 
LAIA - Preferences in favour of 
Ecuador [LAIA, AR.AM N°2] 27-Jan-84 Goods Not notified 
LAIA- Preferences in favour of 
Paraguay [LAIA, AR.AM N°3] 27-Jan-84 Goods Not notified 
LAIA - Preferences in favour of 
Bolivia [LAIA, AR.AM N°1] 27-Jan-84 Goods Not notified 
Source: WTO Secretariat. WT/REG356/1 
 
- 34 - 
 
  5.8  Government procurement 
5.20.  While Hong Kong, China is a signatory to  the WTO Agreement on Government Procurement 
(GPA), Chile is an observer to the GPA.  
5.21.  Chapter 9 covers government procurement. It is complemented by Annex 9.1, which 
contains the list of entities and covered goods and services to which Chapter 9 is applicable for 
each Party, and by Annex 9.2, which contains the thresholds applicable to the Parties' commitments on government procurement. 
5.22.  In Articles 9.3 through 9.18, the Agreement contains disciplines and rules on valuation; 
exceptions; national treatment and non-discrimination; non-disclosure of information; publication of information on procurement; notice of intended procurement; conditions for participation; lists of qualified suppliers; technical specifications; tender documentation; tendering procedures; 
treatment of tenders and awarding of contracts; post-award information; ensuring integrity in 
procurement practices; domestic review of supplie r complaints; and encouraging use of electronic 
communications in procurement. These provisions largely draw on rules contained in the 1994 GPA 
as well as in the revised GPA.  
5.23.  Hong Kong, China's list of entities cove red by government procurement commitments under 
the Agreement as well as the applicable thresholds are identical to those it has registered under 
the GPA except that no commitment is made under the Agreement for "other entities", while this is 
the case under the GPA. Chile, which is not a signatory to the GPA, makes commitments under Chapter 9 applying to a number of entities, at the national and regional levels. As for Hong Kong, China, Chile's commitments apply to all goods; all services except financial services; and all 
construction services, except for those intended for Easter Island. 
5.9  Intellectual property rights 5.24.  The Parties shall, consistent with the WTO TRIPS agreement, ensure in their domestic law 
adequate and effective means to protect geographical indications (GIs) with regards to all goods. 
In particular, Hong Kong, China shall grant relevant protection on intellectual property, subject to its domestic laws and regulations
34, to terms listed in Annex 3.10 to the Agreement, which are GIs 
under Chile's domestic laws and regulations.35 
5.25.  Besides the mention of GIs in Chapter 3 (trade in goods), the Agreement does not contain 
any specific mention to the intellectual property rights.  
5.10  Others 
5.10.1  Competition 
5.26.  Chapter 13 contains provisions covering the agreement between the Parties to promote 
competition and endeavour to ensure that the de sign of trade and competition policies and the 
implementation of domestic laws and regulations give due recognition to the effects on 
competition (Article 13.2). They also agree to cooperate and coordinate in competition policy by exchanging information on the development of competition policy (Article 13.3). Consultations on 
particular anti-competitive practices adversely affecting trade or investment between the Parties 
are also foreseen under Article 13.4. Starting at least within 3 years after the entry into force of the Agreement, the Parties agree to review Chapter 13 with a view to elaborating further steps in light of future developments.  
 
                                               
34 Under the Trade Marks Ordinance of Hong Kong, Chin a, a term listed in Annex 3.10 to the Agreement 
may receive protection if it is registered and the regist ration remains valid in accord ance with that Ordinance. 
However, Hong Kong, China shall no be t precluded from accepting an applicat ion for trade mark registration of 
a mark consisting of or similar to a term listed in An nex 3.10 where the relevant re quirements for registration 
are fulfilled. Further, Arti cle 3.10 shall not be construed to impose any obligation on Hong Kong, China to 
amend its domestic laws and regulations or affect its international position in relation to intellectual property. 
35 The terms contained in the list of GIs under the domestic laws and regulations of Chile cover some 
wines, spirits, agricultural and marine products (specific types of lemon and crayfish). WT/REG356/1 
 
- 35 - 
 
  5.10.2  Environment 
5.27.  Chapter 14 covers environment. It contains the Parties' best endeavour commitments to 
pursue a high level of environmental protection and to fulfil their respective multilateral environmental commitments in conformity with sustainable development objectives. The Parties 
also agree that it is inappropriate to set or use their environmental laws, regulations, policies and 
practices for trade protectionist purposes. Moreover, they agree to the inappropriateness of relaxing, not enforcing or administering their environmental laws and regulations so as to 
encourage trade and investment (Article 14.2). The Parties agree to establish a collaborative 
framework as a means to provide enhanced opportunities to advance the common commitments on environmental protection under the framework of Chapter 14 (Article 14.3). 
5.28.  No later than 6 months after the entry into force of the Agreement, the Parties shall 
designate a contact point to exchange information on the matter (Article 14.4). This has been 
done by both Parties. Consultations are foreseen to settle any issue concerning the interpretation, 
implementation or application of Chapter 14.  
5.10.3  Labour 
5.29.  The Parties' dialogue and cooperation on  labour matters shall be enhanced through the 
Memorandum of Understanding on Labour Cooperation
36 that they have concluded separately but 
alongside the Agreement (Article 19.5). 
 
                                               
36 The text of the Understanding can be found at: 
http://www.tid.gov.hk/english/trade_relations/hkclfta/files/LabourMoU.pdf  WT/REG356/1 
 
- 36 - 
 
  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
Hong Kong, China 
1. Table A1.1 gives an indication of market acce ss in Hong Kong, China for Chile's top 25 global 
exports, which accounted for 73.3% of its glob al exports in 2011-2013; these corresponded to 
46 lines of Hong Kong, China's tariff at the HS six-digit level (using the HS 2012). In 2014, prior to the entry into force of the Agreement, all these li nes were already (MFN) duty free. On the date of 
entry into force of the Agreement, in 2014, all these tariff lines became legally bound at duty free 
level for exports from Chile. 
Table A1.1 Hong Kong, China: Market a ccess opportunities under the agreement for 
Chile's top 25 exports to the world 
Chile's top export products in 2011-2013 Access Conditions to Hong 
Kong, China's import markets 
HS number and description of the product  Share in 
global 
exports 
(%) MFN (2014) 
Average MFN  
applied rate 
(%) No. of Duty-
free tariff 
lines 
740311 -- cathodes and sections of cathodes 28.1 0.0 1 
260300 Copper ores and concentrates. 20.1 0.0 1 
740200 Unrefined copper; copper anodes for 
electrolytic refining. 4.3 0.0 
1 
080610 - fresh 1.9 0.0 1 
220421 -- in containers holding 2 l or less 1.9 0.0 5 
710812 -- other unwrought forms 1.9 0.0 2 
470321 -- coniferous 1.6 0.0 1 
470329 -- non-coniferous 1.5 0.0 1 
260111 -- non-agglomerated 1.5 0.0 1 
261310 - roasted 1.2 0.0 1 
280120 - iodine 1.0 0.0 1 
080810 - apples 1.0 0.0 1 
440710 - coniferous 0.9 0.0 1 
030312 -- other pacific salmon (oncorhynchus 
gorbuscha, oncorhynchus keta, 
oncorhynchus tschawytscha, oncorhynchus 
kisutch, oncorhynchus masou and 
oncorhynchus rhodurus) 0.7 0.0 
1 
740811 -- of which the maximum cross-sectional 
dimension exceeds 6 mm 0.6 0.0 
1 
710691 -- unwrought 0.6 0.0 1 
310420 - potassium chloride 0.6 0.0 1 
271019 -- other 0.6 0.0 15 
230120 - flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 0.6 0.0 
2 
030441 -- pacific salmon (oncorhynchus nerka, 
oncorhynchus gorbus cha, oncorhynchus 
keta, oncorhynchus tschawytscha, 
oncorhynchus kisutch, oncorhynchus masou 
and oncorhynchus rhodurus), atlantic 
salmon (salmo salar) and danube salmon 
(huchohucho) 0.6 0.0 
1 
081040 - cranberries, bilberries and other fruits of 
the genus vaccinium 0.5 0.0 
1 
030314 -- trout (salmo trutta, oncorhynchus 
mykiss, oncorhynchus clarki, oncorhynchus 
aguabonita, oncorhynchus gilae, 
oncorhynchus apache and oncorhynchus 
chrysogaster) 0.5 0.0 
1 
020329 -- other 0.5 0.0 1 WT/REG356/1 
 
- 37 - 
 
  Chile's top export products in 2011-2013 Access Conditions to Hong 
Kong, China's import markets 
HS number and description of the product  Share in 
global 
exports 
(%) MFN (2014) 
Average MFN  
applied rate 
(%) No. of Duty-
free tariff 
lines 
740400 Copper waste and scrap. 0.5 0.0 2 
440122 -- non-coniferous 0.5 0.0 1 
Total of above 73.3 0.0 46 
 
Source: WTO estimates based on data provided by Ho ng Kong, China to the WTO-IDB and UNSD, Comtrade 
database. 
 
Chile 
2. Tables A1.2 shows tariff liberalization by Chile by total, agricultural and non-agricultural 
products.  
3. In 2014, Chile's average applied MFN rate was 6% overall, for agricultural products and for 
non-agricultural products. Some 0.4% of Chile's tariff was duty free on an MFN basis; 0.5% of 
non-agricultural products were duty free while a negligible part of agricultural products were duty free. At the entry into force of the Agreement (2014), Hong Kong, China's exporters enjoyed an 
absolute margin of preference of 5.5% vis-à-vis  the prevailing MFN tariff; 5.4% for 
non-agricultural goods and 5.7% for agricultural products. The share of duty free lines applicable 
to imports from Hong Kong, China when the Ag reement started to be implemented (2014) was 
88%. Two years after the entry into force of th e Agreement, in 2016, when implementation is 
expected to be complete, Hong Kong, China's expo rters will face zero duties on 97.7% of their 
exports to Chile (95.8% for agricultural products and 98.1% for non-agricultural products). 
Table A1.2 Chile: Indicators of MFN tariff rates and preferential rates for imports from 
Hong Kong, China 
Origin of 
goods Year ALL PRODUCTS Agricultural productsa 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 2014 6.0 6.0 0.4 6.0 6.0 0.0 6.0 6.0 0.5 
Hong Kong,  2014 0.5 4.4 88.0 0.3 5.8 95.5 0.6 4.3 86.4 
China 2015 0.3 2.8 88.0 0.3 5.7 95.5 0.3 2.6 86.4 
 2016 0.1 6.0 97.7 0.3 6.0 95.8 0.1 6.0 98.1 
a WTO Definition. 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 41 tariff lines under the Excluded category reflect the MFN 2014 duties.1 
Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on  data from Chile authorities. 
 
4. Table A1.3 gives an indication of additional market access in Chile resulting from the entry 
into force of the Agreement for Hong Kong, China's top 25 global exports, which accounted for 56.7% of its global exports in 2011-2013; these co rresponded to 53 lines of Chile's tariff at the 
HS six-digit level (using the HS 2012). In 2014, prior to the entry into force of the Agreement, 
none of these tariff lines were duty free. With  the entry into force of the Agreement, in 2014, 
50 tariff lines, which were (MFN) dutiable, were lib eralized for exports from Chile. 3 additional 
                                               
 1 HS tariff lines  1001.9100, 1001.9911, 1001.9912, 1001.9913, 1001.9919, 1001.9921, 1001.9922, 
1001.9923, 1001.9929, 1001.9931, 1001.9932, 1001.9933, 1001.9939, 1001.9941, 1001.9942, 1001.9943, 
1001.9949, 1001.9951, 1001.9952, 1001.9953, 1001.9959, 1001.9961, 1001.9962, 1001.9963, 1001.9969, 
1001.9971, 1001.9972,1001.9973, 1001.9979, 1001.9991, 1001.9992, 1001.9993, 1001.9999, 1101.0000, 1701.1200, 1701.1300, 1701.1400, 1701.9100, 1701.9910, 1701.9920 and 1701.9990. WT/REG356/1 
 
- 38 - 
 
  tariff lines shall be liberalized in 2016. No tariff  line corresponding to Hong Kong, China's top 
25 exports products in 2011-2013 will remain dutiable once the tariff elimination programme is fully implemented.  
Table A1.3 Chile: Market access opportuniti es under the Agreement for Hong Kong, 
China's top 25 exports to the world 
Hong Kong, China's top export products in 2011-2013 Access conditions to Chile's 
import markets HS number and description of the product 
Share in 
global exports 
(%) MFN 2014 Duty-free in Average 
MFN 
applied 
rate (%) 
Dutiable 
Lines 2014 2016 
710812 -- other unwrought forms 10.2 6 1 1  
851770 - parts 5.4 6 1 1  
854239 -- other 5.0 6 1 1  
854231 -- processors and controllers, whether or not 
combined with memories, converters, logic 
circuits, amplifiers, cloc k and timing circuits, 
or other circuits 4.6 6 1 1  
847330 - parts and accessories of the machines of 
heading 84.71 4.5 6 1 1  
851762 -- machines for the reception, conversion and 
transmission or regeneration of voice, images 
or other data, including switching and routing 
apparatus 2.7 6 6 6  
852990 - other 2.6 6 1 1  
851712 -- telephones for cellular networks or for 
other wireless networks 2.5 6 1 1  
710239 -- other 2.5 6 1 1  
854232 -- memories 2.1 6 1 1  
853400 Printed circuits. 1.9 6 1 1  
847170 - storage units 1.8 6 5 5  
844399 -- other 1.6 6 2 2  
711319 -- of other precious metal, whether or not 
plated or clad with precious metal 1.1 6 1 1  
850440 - static converters 1.0 6 1 1  
853690 - other apparatus 1.0 6 3 3  
950300 Tricycles, scooters, pedal cars and similar 
wheeled toys; dolls' carriages; dolls; other toys; reduced-size ("scale") models and similar recreational mo dels, working or not; 
puzzles of all kinds. 0.9 6 11 11  
910211 -- with mechanical display only 0.8 6 1 1  
710691 -- unwrought 0.7 6 2 2  
847130 - portable automatic data processing 
machines, weighing not more than 10 kg, 
consisting of at leas t a central processing 
unit, a keyboard and a display 0.7 6 1 1  
852580 -television cameras, digital cameras and video 
camera recorders 0.6 6 3 3  
950490 - other 0.7 6 1 1  
901380 - other devices, appliances and instruments 0.6 6 1 1  
640399 -- other 0.5 6 4 1 3 
852351 -- solid-state non-volatile storage devices 0.5 6 1 1  
Total of above 56.7  53 50 3 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature.  Source:  WTO estimates based on data from Ch ile authorities and UNSD, Comtrade database. WT/REG356/1 
 
- 39 - 
 
  ANNEX 2 
LIST OF PRODUCTS COVERED BY CHILE'S PRICE BAND SYSTEM 
1. The following products, according to HS 2012 classification, are covered by Chile's price 
band system.  
Table A2.1 Chile: Price band system  
List of Chilean products covered under pr ice band system (HS 2012 classification) 
1001.9100 1001.9911 1001.9912 
1001.9913 1001.9919 1001.9921 
1001.9922 1001.9923 1001.9929 
1001.9931 1001.9932 1001.9933 
1001.9939 1001.9941 1001.9942 
1001.9943 1001.9949 1001.9951 
1001.9952 1001.9953 1001.9959 
1001.9961 1001.9962 1001.9963 
1001.9969 1001.9971 1001.9972 
1001.9973 1001.9979 1001.9991 
1001.9992 1001.9993 1001.9999 
1101.0000 1701.1200 1701.1300 
1701.1400 1701.9100 1701.9910 
1701.9920 1701.9990  
 
__________