RESTRICTED  
  
WT/TPR/S/315  
5 May 2015  
(15-2382)  Page: 1/164  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
CHILE 
This report, prepared for the fifth Trade Policy Review of Chile, has been drawn up by the 
WTO Secretariat on its own responsibility. The Se cretariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Chile on its trade policies 
and practices.  Any technical questions arising from this report may be addressed to Mr Angelo Silvy 
(022 739 52 49) or Ms Eugenia Lizano (022 739 65 78). 
 Document WT/TPR/G/315 contains the policy statement submitted by Chile. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Re v i e w  B o d y  o n  C h i l e .  T h i s  r e p o r t  w a s  d r a f t e d  
in Spanish. WT/TPR/S/315 • Chile 
 
- 2 - 
 
  CONTENTS 
SUMMARY ....................................................................................................................... . 7 
1   ECONOMIC ENVIRONMENT ........................................................................................ 12  
1.1   Structure and tr end of the economy ............................................................................ 12 
1.2   Fisca l policy ........................................................................................................... .. 15 
1.2.1   General characteristics and tren ds during the period under review ................................ 15 
1.2.2   Tax reform ............................................................................................................ 16 
1.2.3   Sove reign funds .................................................................................................... 18 
1.2.4   Public debt ............................................................................................................ 20 
1.3   Monetary and ex change rate  policies ........................................................................... 20 
1.4   Balance of payments ................................................................................................. 22 
1.5   Merchandise trade and investme nt flows ...................................................................... 24 
1.5.1   Composit ion of trade .............................................................................................. 24 
1.5.2   Direction of trade ................................................................................................... 25 
1.5.3   Trade in services ................................................................................................... 27 
1.5.4   Foreign di rect inve stment........................................................................................ 28 
1.6   Outlook ................................................................................................................... 31 
2   TRADE AND INVESTMENT REGIMES ........................................................................... 33  
2.1   Overview ................................................................................................................. 33 
2.2   Trade policy formulation and objective ......................................................................... 35 
2.3   International trade relations ....................................................................................... 36 
2.3.1   World Trade Organization ........................................................................................ 36 
2.3.2   Regional trade agreements ...................................................................................... 37 
2.3.3   Other agreements and arrangements ........................................................................ 40 
2.4   Foreign investment ................................................................................................... 40 
2.4.1   Legal framework .................................................................................................... 40 
2.4.2   Bilateral and international investment agreements ...................................................... 42 
3   TRADE POLICIES AND PRACTICES, BY MEASURE ....................................................... 44  
3.1   Measures direct ly affectin g imports ............................................................................. 44 
3.1.1   Customs procedures, documents and re gistration ....................................................... 44 
3.1.2   Custom s valuation ................................................................................................. 47 
3.1.3   Rules of origin .......................................................................................................  47 
3.1.4   Tariffs ............................................................................................................... ... 48 
3.1.4.1   Structure and levels ............................................................................................ 48 
3.1.4.2   Price band system ............................................................................................... 49 
3.1.4.3   Tari ff bindings .................................................................................................... 50 
3.1.4.4   Tariff quotas ....................................................................................................... 51 
3.1.4.5   Tariff concessions ................................................................................................ 52 
3.1.4.6   Preferential tariffs ............................................................................................... 52 
3.1.5   Other charge s affecting imports ............................................................................... 53 WT/TPR/S/315 • Chile 
 
- 3 - 
 
  3.1.6   Import prohibitions, restrictions an d licensing ............................................................ 55 
3.1.6.1   Import prohibitions ............................................................................................. 55 
3.1.6.2   Import restri ctions and licens ing ........................................................................... 55 
3.1.7   Anti-dumping, countervai ling and safegu ard measures ................................................ 55 
3.1.7.1   Overall legal framework ....................................................................................... 55 
3.1.7.2   Anti-dumping and countervailing measures ............................................................. 56 
3.1.7.3   Safeguard measures ............................................................................................ 58 
3.1.8   Standards and technical regulations ......................................................................... 60 
3.1.8.1   Legal and in stitutional framework .......................................................................... 60 
3.1.8.2   Technical regulations ........................................................................................... 61 
3.1.8.3   Standards .......................................................................................................... 63 
3.1.8.4   Conformity assessment ........................................................................................ 64 
3.1.8.5   Metrology .......................................................................................................... 65 
3.1.9   Sanitary and ph ytosanitary measures ....................................................................... 65 
3.2   Measures direct ly affectin g exports ............................................................................. 68 
3.2.1   Customs procedures, documents and re gistration ....................................................... 68 
3.2.2   Export ta xes and duties .......................................................................................... 69 
3.2.3   Export prohibitions and restrictions and licensing regimes ............................................ 70 
3.2.4   Support  for exports ................................................................................................ 70 
3.2.5   Export financ ing and guarantees .............................................................................. 71 
3.2.6   Export promotion ................................................................................................... 72 
3.3   Other measures affect ing production and trade ............................................................. 72 
3.3.1   In centives ............................................................................................................  72 
3.3.1.1   Support for remote  areas ..................................................................................... 73 
3.3.1.2   Support for micro, smal l and medium-sized  enterprises ............................................ 75 
3.3.1.3   Other programmes .............................................................................................. 75 
3.3.2   Competition poli cy and pric e cont rol ......................................................................... 76 
3.3.2.1   Overview ........................................................................................................... 76 
3.3.2.2   Regulatory and institutional framework .................................................................. 76 
3.3.2.3   Enforcement ....................................................................................................... 78 
3.3.2.4   Mergers .............................................................................................................  81 
3.3.2.5   Pr ice cont rol .......................................................................................................  82 
3.3.3   State trading, State-owne d enterprises and privatization ............................................. 82 
3.3.4   Governme nt procurement ....................................................................................... 84 
3.3.4.1   Overview ........................................................................................................... 84 
3.3.4.2   Legal framew ork and procedures ........................................................................... 85 
3.3.5   Intellectual property rights ...................................................................................... 88 
3.3.5.1   Overview ........................................................................................................... 88 
3.3.5.2   Legal framework ................................................................................................. 89 
3.3.5.3   Indust rial property .............................................................................................. 92 WT/TPR/S/315 • Chile 
 
- 4 - 
 
  3.3.5.4   Copyright ........................................................................................................... 93 
3.3.5.5   Enforcement ....................................................................................................... 95 
4   TRADE POLICIES BY SECTOR ..................................................................................... 97  
4.1   Agriculture, forestry and fishing .................................................................................. 97 
4.1.1   Agricultur e and fore stry .......................................................................................... 97 
4.1.1.1   Main characte ristics and ob jectives ........................................................................ 97 
4.1.1.2   Policy instruments ............................................................................................... 98 
4.1.1.2.1   Border measures .............................................................................................. 98 
4.1.1.2.2   Othe r measures ............................................................................................. 100  
4.1.2   Fishing ...............................................................................................................  102 
4.2   Mining ..................................................................................................................  106 
4.2.1   General characteristics and main products ............................................................... 106  
4.2.1.1   Copper ............................................................................................................ 1 07 
4.2.1.2   Othe r metals  .................................................................................................... 108  
4.2.2   Policy objectives and le gal and institutio nal framework .............................................. 108  
4.2.3   Regulatory framework for investment in mining ....................................................... 109  
4.2.3.1   General framework ............................................................................................ 109  
4.2.3.2   Specific conditions for foreign investment  in mining ............................................... 110  
4.2.4   Mining sector policie s for economic development ...................................................... 111  
4.3   Energy ..................................................................................................................  112 
4.3.1   General ch aracterist ics ......................................................................................... 112  
4.3.2   Institutional and regulatory fr amework ................................................................... 112  
4.3.3   El ectricity ...........................................................................................................  114 
4.3.4   Hydrocarbons ...................................................................................................... 116  
4.3.5   Renewable energies ............................................................................................. 120  
4.4   Manufac turing ........................................................................................................ 12 1 
4.5   Services ................................................................................................................  122 
4.5.1   Financial services ................................................................................................. 122  
4.5.1.1   General characteristics and regulatory and prud ential aspects ................................. 122  
4.5.1.2   Banking sector .................................................................................................. 126  
4.5.1.2.1   General characteri stics .................................................................................... 126  
4.5.1.2.2   Legal and in stitutional fr amework ..................................................................... 128  
4.5.1.3   In suranc e ........................................................................................................ 12 9 
4.5.1.3.1   General characteri stics .................................................................................... 129  
4.5.1.3.2   Legal and in stitutional fr amework ..................................................................... 130  
4.5.1.4   Pension funds ................................................................................................... 132  
4.5.1.4.1   General characteri stics .................................................................................... 132  
4.5.1.4.2   Legal and in stitutional fr amework ..................................................................... 133  
4.5.2   Telecommunications ............................................................................................. 134  
4.5.2.1   General characte ristics of th e sector .................................................................... 134  WT/TPR/S/315 • Chile 
 
- 5 - 
 
  4.5.2.2   Legal and inst itutional framework ........................................................................ 135  
4.5.3   Air transpor t ....................................................................................................... 1 37 
4.5.3.1   General characteristics ....................................................................................... 137  
4.5.3.2   Legal and inst itutional framework ........................................................................ 139  
4.5.4   Maritime tr ansport and ports ................................................................................. 143  
4.5.4.1   Mariti me transp ort ............................................................................................ 143  
4.5.4.2   Ports ...............................................................................................................  144 
5   APPENDIX TABLES .................................................................................................. 146  
 
CHARTS 
 
Chart 1.1 Merchandise trade by product, 2009 and 2014 ....................................................... 25 
Chart 1.2 Merchandise trade by trading partner, 2009 and 2014 ............................................. 27 
Chart 2.1 Network of Chile's trade agreements ..................................................................... 39 
Chart 3.1 Flow chart showing consider ation of a techni cal regulation ....................................... 64 
Chart 3.2 Contentious proceedings: cond uct recognized and judged by the TDLC 
at 30 September 2014 ...................................................................................................... 80 
 
TABLES 
 
Table 1.1 Structure and tren d of the econ omy, 2009- 2014 .................................................... 13 
Table 1.2 Non-financial operations of the central government, 2008-2014 ................................ 15 
Table 1.3 Main monetary  indicators , 2008-2 014 ................................................................... 21 
Table 1.4 Balance of payments, 2009-2014  ......................................................................... 23 
Table 1.5 Trade in services, 2009-2014 ............................................................................... 28 
Table 1.6 Direct investment  flows by se ctor, 2009- 2013 ........................................................ 28 
Table 1.7 Volume of direct investment by economic sector, 2009-2013 .................................... 29 
Table 1.8 Direct investment  flows by co untry, 2009- 2013 ...................................................... 29 
Table 1.9 Direct investment vo lumes by country , 2009-2013 ................................................. 30 
Table 1.10 Prospects for economic grow th and the current -account ba lance ............................. 31 
Table 3.1 Goods which require prior control before being cleared to enter Chile, 2014 ................ 45 
Table 3.2 Structure of MFN tariffs, 2009-2014 ...................................................................... 48 
Table 3.3 Products subject to price bands ............................................................................ 50 
Table 3.4 Tariff quotas, 2009-2014 ..................................................................................... 51 
Table 3.5 Analysis of the preferential ta riff under certain tr ade agreemen ts, 2014 ..................... 53 
Table 3.6 Indirect ta xes, December 2014 ............................................................................ 54 
Table 3.7 Principal laws governing the sa nitary and phytosan itary syst em, 2014 ....................... 66 
Table 3.8 CORFO foreign trade guaran tee operations (C OBEX), 2 011-20 14 .............................. 71 
Table 3.9 List of State-owned enterprises, De cember 2014 .................................................... 84 
Table 3.10 Overview of intellectua l property rights  in Ch ile, 2014............................................ 90 WT/TPR/S/315 • Chile 
 
- 6 - 
 
  Table 3.11 Administrative procedures by the Department of Intellectual Property Rights, 
2009-2013 ...................................................................................................................... 94 
Table 4.1 Main indicators for the fore stry and agricultur e sector, 2009-20 14 ............................ 97 
Table 4.2 Imports of products su bject to price ba nds, 2009- 2014 ........................................... 99 
Table 4.3 Main indicators for th e fisheries sector , 2009-2014 ............................................... 102  
Table 4.4 Main mining product exports, 2009-2014 ............................................................. 106  
Table 4.5 Mining's share of  exports, 2009-2014 ................................................................. 107  
Table 4.6 Chilean copper exports, by country of destin ation, 2009- 2014 ................................ 107  
Table 4.7 Non-copper metal production, 2009-2014 ............................................................ 108  
Table 4.8 Production, importation and consumption of primary energy, 2013 .......................... 112  
Table 4.9 Manufacturing sector GDP,  2008-20 14 ................................................................ 121  
Table 4.10 Main banking syst em indicators , 2009-201 4 ....................................................... 127  
Table 4.11 Telecommunications indicators, 2009-2014 (1st half) ........................................... 134  
Table 4.12 Rights for foreig n airlines in Chile ..................................................................... 141  
 
BOXES 
 
Box 4.1 Conditions imposed on the merger between LAN and TAM by the TDLC 
in Septembe r 2011 ........................................................................................................ 139  
 
APPENDIX TABLES 
 
Table A1. 1 Merchandise expo rts by produc t, 2009-2014  ..................................................... 146  
Table A1. 2 Merchandise impo rts by produc t, 2009-2014  ..................................................... 148  
Table A1. 3 Merchandise exports by trading partner, 2009-2014 ........................................... 150  
Table A1. 4 Merchandise imports by trading partner, 2009-2014 ........................................... 151  
 
 
Table A2. 1 Principal notifications submitted pursuant to the WTO Agreements, 
1 January 2009 to 31 December 2014 .............................................................................. 152  
Table A2. 2 Overview of Chile's regional trad e agreements that entered into force between 
2009 and 20 14 .............................................................................................................. 15 4 
 
 
Table A3. 1 Customs de stinations  2014 ............................................................................. 158  
Table A3. 2 Analysis of the MFN tariff, 2014 ....................................................................... 159  
Table A3. 3 Preferential tariff quot as, 2014  ........................................................................ 160  
Table A3. 4 Chilean Economic Developmen t Agency (CORFO) Su pport Programmes ................. 161  
 
 
Table A4. 1 Selected agricult ural support pr ogrammes ........................................................ 162  
Table A4. 2 Fishery support  programmes , 2009-201 4 ......................................................... 164 WT/TPR/S/315 • Chile 
 
- 7 - 
 
  SUMMARY 
1. While the Chilean economy did not escape the effects of the global economic crisis, it was 
quickly able to recover, thanks to higher mineral prices, to its sound financial system, and to its prudent management of economic policy which resulted in a fiscal surplus and a low level 
of borrowing. Between 2009 and 2014, GDP grew at an  average annual rate of 3.6% in real terms. 
Following a period of rapid growth between 201 0 and 2012, the economy slowed down in 2013 
and particularly in 2014, when real GDP expanded by just 1.9%. The authorities responded to this 
slowdown by adopting a more expansionary monetary policy in order to bring down interest rates 
and allow the peso to depreciate. But despite Ch ile's good economic performance, growth in 
productivity has been modest, and though there have been recent signs of revival, companies are not investing much in research and development, and there is a shortage of qualified personnel. 
Significant steps have been taken to improve productivity, including trade liberalization policies 
accompanied by changes to the regulatory framework for investment and the adoption of a more far-reaching competition law. All of this has been coupled with efforts to improve the 
educational system. 
2. Chile has maintained a policy of structural balance with certain flexibilities. This policy aims 
to ensure medium term fiscal stability while making it possible to use counter-cyclical measures 
in periods of slow economic growth. Though the ta rget surplus ranged from 0 to 1.8% during most 
of the period under review, there were deficits in 2013 and 2014, so that since 2014 the aim has been to try to restore the medium-term structural balance. Hence the enactment of the Tax Reform Law, designed to enhance tax efficiency and equity and increase tax revenue 
by 3 percentage points of GDP. This should help to finance the educational reform and other social 
protection policies, and to restore the central government structural balance. The tax reform is being introduced progressively over a period of four years, and involves reducing certain 
tax rates and increasing others with a view to achieving greater tax equity. 
3. Chile has a public savings mechanism, the Economic and Social Stabilization Fund (FEES) 
which, each year, receives the positive balance of the fiscal surplus after subtracting contributions 
to the Pensions Reserve Fund (FRP). The FEES makes it possible to finance future fiscal deficits, 
repay the public debt and stabilize expenditure levels. As of December 2014, the size of the fund was US$14,689 million, 27% below its peak value in 2008, owing in part to the withdrawals made to cope with the global financial crisis. 
4. The current account of Chile's balance of payments is characterized by a traditionally surplus 
merchandise trade balance and a negative balance of services and investments. The overall balance depends largely on the size of the trade surplus, which in turn, is highly influenced by 
fluctuations in the copper price on the export side, and domestic demand on the import side. 
During the review period, the current account went from a surplus in 2009 and 2010 to a deficit starting in 2011, following a substantial increase in merchandise imports between 2009 and 2012 
as a result of strong domestic demand and the real appreciation of the peso. Later in 2013 the 
current account deficit increased to 3.7% of GDP, but in 2014 it was back down to 1.7% of GDP thanks to a greater trade surplus attributable chiefly to a fall in imports. 
5. The period 2009-2014 saw a faster increase in merchandise imports (69%) than 
exports (38.2%). Chile exports mainly mineral and agricultural products. Despite the higher 
copper prices, the share of mining products in to tal exports dropped slightly during the period 
2009-2014 to 56.8%. Even so, Chilean exports continue to depend heavily on mining, in particular 
copper, which in 2014 accounted for 50.1% of its ex ports. The share of agricultural products in 
total exports grew from 25.9% in 2009 to 28.8% in 2014. China provided Chile's main export market in 2014, absorbing 24.6% of its export s, followed by the European Union (14.5%), 
the United States (12.2%) and Japan (10%). In  2014, China overtook the United States as 
Chile's main supplier, with 20.9% of the total, followed by the United States (19.8%), the European Union, Brazil and Argentina. 
6. Chile continued to receive large foreign direct investment (FDI) flows during the review 
period. Between 2009 and 2013 inflows amounted to US$100,856 million, nearly six times the 
amounts received in 2003-2008. Of the FDI received in Chile, almost 45% was absorbed by the mining sector, and the rest was chiefly split among the financial services sector, the electricity, 
gas and water sector, and the manufacturing industry. Chile was also a dynamic investor abroad 
during the 2009-2013 period. WT/TPR/S/315 • Chile 
 
- 8 - 
 
  7. Over the review period, Chile continued and in tensified its open trade strategy based on 
concluding trade agreements. Indeed, Chile is one of the countries with the most agreements and trading partners. Since the last review in 2009, Chile has concluded free trade agreements with Canada; China (services and investment); Hong Kong, China; Malaysia; Thailand; Turkey, and 
Viet Nam. It is continuing to negotiate the Trans-Pacific Partnership (TPP) to integrate the 
Asian and Pacific regions. It participated actively in the Pacific Alliance negotiations, and has continued to liberalize trade in the framework of  APEC. In 2010, Chile became a member of the 
Organisation for Economic Co-operation and Development (OECD), having introduced a number 
of far-reaching reforms to its domestic legislation and practices. 
8. Although the legal framework for foreign investment in Chile did not undergo any significant 
changes during the review period, there has in fa ct been a tendency over the past few years to 
favour Chapter XIV of the Central Bank's Compen dium of Foreign Exchange Regulations over the 
Foreign Investment Statute (Decree Law No. 600) as a mechanism for bringing capital into Chile. Most of Chile's free trade agreements include a chapter on investment. In January 2015, 
the Chilean Government announced the presentation of a draft law defining a new legal framework 
for foreign investment in Chile. 
9. Chile continued to implement trade facilitation measures during the review period. 
For example, it standardized customs procedures  for some customs destinations and expects to 
have a single window for definitive imports up and running in 2017. The SIBEX module for exports has been in operation since 2014. Steps have also been taken to ensure the impartiality of decisions regarding complaints brought before the National Customs Service with the creation of 
the Tax and Customs Courts (TTA) to resolve su ch issues. The TTA are independent courts, and 
their creation puts an end to a situation in which the Customs authorities were both judge and party in customs disputes. At the same time, the importer is still required to use the services of a 
customs agent for inward clearance of goods im ported when their f.o.b. value exceeds US$1000. 
The customs agents must be Chilean citizens. 
10. In 2014, the average MFN tariff rate was 6%, the same as in 2009. Leaving out the price 
band system, Chile has only two tariff rates: 0%  and 6%. The 12.5% rate that applied to poultry 
meat was reduced to 6% in 2012. Chile's tariff structure is practically homogenous inasmuch as the 6% rate applies to 99.6% of the lines, while the 0% rate only applies to 35 lines, including 
machinery and certain means of transport. Chile still applies a price band system based on 
international reference prices for imports of wh eat, wheat flour and sugar. According to the 
authorities, the price band resulted in zero rates during most of the review period. Although the application of the price band system has not le d to greater protection during this period, 
its existence is a source of uncertainty among potential exporters and it lessens the transparency 
of Chile's tariff policy. 
11. Chile applies preferential rules of origin under the RTAs and other preferential agreements it 
has signed, as well as for granting unilateral preferences. The rules of origin differ from one 
agreement to another, and include general and specific rules whose complexity varies depending on the agreement. In some cases, they could discour age preferential access, particularly in view of 
the fact that the 6% MFN tariff is relatively low. 
12. Chile's anti-dumping and countervailing duty legislation is not very trade restrictive. 
A number of legal amendments were introduced during  the review period to further limit the use of 
anti-dumping and countervailing measures by shortening the maximum period for an 
investigation. This is in addition to another important aspect of Chile's anti-dumping and 
countervailing measures regime, na mely, that measures may only last for one year and may not 
be renewed. Changes were also made to Chile's safeguards legislation, but they went in the 
opposite direction, extending the possible a pplication and renewal periods from one to 
two years - although these limits are still lower than those in the WTO Agreement on Safeguards. Some of the RTAs signed by Chile exempt the parties from imposition of global safeguard 
measures adopted within the WTO framework, although in its most recent RTAs there are 
no such exceptions. 
13. The legal framework for the drafting and application of technical regulations, standards and 
conformity assessment procedures is transparent and open. The measures are drafted on the basis 
of principles of non-discrimination and tran sparency, and for the most part, recourse to 
international standards. The regulatory agencies are required to publish on their websites all WT/TPR/S/315 • Chile 
 
- 9 - 
 
  technical regulations and conformity assessment procedures in effect. Chile also has a 
Technical Regulations Gateway intended to centralize this information. Between January 2009 and December 2014, Chile submitted 209 new notifica tions of technical regulations to the WTO. 
As a general rule, for both imported and domestic products, compliance with technical regulations 
is verified after the products have been placed on the market. However, for the import of 
foodstuffs, beverages, medicines, weapons, radi oactive substances, electrical goods and fuels, 
verification takes place at the border. Chile has no single law governing the sanitary and 
phytosanitary system and the drafting and appl ication of sanitary and phytosanitary (SPS) 
measures is the responsibility of a number of auth orities. Drafts of SPS measures are drawn up by 
technical committees, which generally base themselves on the relevant international standards. SPS drafts are put up for public consultation and simultaneously notified to the WTO. 
During the period 2009-2014, Chile submitted 201 notifications to the WTO's SPS Committee 
(excluding addenda). 
14. Chile has two duty drawback systems for ex porters: one general, and one simplified. 
Under the simplified system, used above all by smal l exporters, non-traditional exports are eligible 
for a reimbursement of 3% of the f.o.b. value of  the goods exported. The temporary admission for 
inward processing regime (DATPA) allows companies producing goods for export to import raw 
materials, semi-processed goods and components and spare parts from abroad without paying 
import duties or VAT. The Chilean Economic Development Agency (CORFO) operates a bank loan guarantee scheme for exporters (COBEX) against the risk of non-payment, which was extended in 
2010 to investment or working capital for micro, small and medium-sized exporting or importing 
enterprises. The coverage provided by CORFO in creased during the review period, and can reach 
as much as 60%. 
15. Three programmes whose objective is regional development were notified to the WTO as 
subsidies: tax credit for investment in certain pr ovinces, exemption from tax in free zones, and the 
Fund for the Promotion and Development of Remote Areas. Chile has other support programmes aimed at fostering development of regions in th e far north and south of the country to boost 
employment, which provide non-reimbursable fina ncing to small and medium-sized enterprises 
interested in investing in these regions. In  addition, there are a number of SME support 
programmes, most of them administered by CORFO.  The SMEs may also obtain guarantees to the 
Guarantee Fund for Small Enterprises seeking loans through the financial institutions. 
16. During the period under review, Chile introduc ed measures to reinforce the activity and 
powers of its competition authorities, as well as their independence. For the time being, Chile's competition policy is designed to prevent abuse of a dominant market position, and action 
by the competition authorities focuses on combating international cartels, where they have 
obtained a large measure of success. However, Chile still lacks legislation requiring pre-notification 
or notification of mergers, which have been cont rolled through a semi-voluntary de facto system of 
notification. The authorities have sought to make good the absence of binding regulations by 
issuing operational guidelines, but they are not ma ndatory. To fill this gap, Chile has drawn up 
a new draft Competition Law which strengthens the powers of the authorities and regulates the review of mergers. 
17. Chile has a transparent and efficient government procurement system for goods and 
services, making use of an electronic procurem ent platform. The Chilean Government Procurement 
and Contracts System, introduced in 2003, is based on a best practices mechanism and, according 
to the authorities, has generated considerable savings for the State. Over 900 purchasers from the 
central and local administrations took part in ChileCompra's bidding procedures. Purchasing by State-owned enterprises and for public works is  governed by their respective regulations. 
However, the State enterprises are free to utilize ChileCompra. There is no provision for margins of 
preference for national suppliers and no discrim ination among products, services and suppliers 
according to their origin. Nor is there any provision for offsets as a condition for awarding a contract or any set-asides for certain bidders. Chile is an observer in the WTO Committee 
on Government Procurement. 
18. Chile has maintained its objective of implemen ting an intellectual property regime that 
strikes a balance between obligations and rights, on  the one hand giving adequate protection to 
creators and inventors, and on the other, safeguarding the interests of users when rights fall into 
the public domain. Chile has reformed its legislation to improve its intellectual property regime and bring it into line with its international commitments. In some instances, its legislation goes further WT/TPR/S/315 • Chile 
 
- 10 - 
 
  than the obligations under the TRIPS Agreement,  for example, in certain areas relating to 
copyright and industrial property. This reflects Chile's commitments under the RTAs that it has concluded. 
19. During the review period, Chilean agricultural policy focused on promoting competitiveness 
and innovation, including small-scale agriculture. Disregarding the protection that would result 
from applying the price band system, tariff protection for all agricultural products stands at 6%. Sugar is subject to MFN and preferential tariff qu otas. Within the context of the trade agreements 
it has signed, Chile has negotiated other preferential tariff quotas for products such as beef and 
veal, poultry meat, pigmeat and dairy produce. The Ministry of Agriculture has implemented a series of programmes to facilitate access to financing for small-scale family farmers and SMEs, and also provides technical assistance and training. Chile offers assistance to farmers in the form of a 
50% contribution to the agricultural insurance premium (75% in the case of cereals), with a ceiling 
per farmer per farming season. 
20. Chile has four types of regime for granting access to fishery resources. For each regime 
there is a different fishing permit: for the general access regime fishing authorizations are 
granted; for the fully exploited fisheries regimes licences are granted; and for the recovering and incipient fisheries regimes special permits are granted. In general, if the applicant is a natural 
person, he must be a Chilean or a foreigner with a permanent residence permit, and if the 
applicant is a legal person, it must be lawfully established in Chile. The aquaculture subsector continues to be of major importance for Chile since it is one of its main export industries. Aquaculture concessions are granted for a renewable period of 25 years, and may be transferred. 
There are no nationality restrictions. 
21. The mining sector accounts for more than 11% of  Chile's GDP, and is Chile's principal export 
sector and the main destination for foreign investment in the country. Although mines cannot be 
privately owned, a system of concessions enables mi nerals to be exploited and explored by private 
individuals, with equal treatment for domestic and foreign investors. The Chilean State plays a preponderant part in mineral production, especially copper mining, through two State 
enterprises: the National Copper Corporation (CODELCO) and the National Mining Company 
(ENAMI). In addition to the basic tax system, Chil ean legislation has provided for a specific mining 
tax on extraction and production operations. The tax rate is variable and depends on the total value of annual sales. 
22. Chile is a net importer of energy. Private companies, domestic and foreign, are authorized to 
participate in all energy sector activities without limitation. In practice, the State enterprise ENAP dominates most hydrocarbon exploitation, production and refining. The government is continuing 
to implement systems for stabilizing the domestic prices of certain fuels. The current Fuel Price 
Stabilization Mechanism (MEPCO), created in July 2014, operates through increases and abatements in the specific fuel taxes for certain fuels (automotive gasoline, diesel, compressed 
natural gas and liquefied petroleum gas). As with  previous systems, its purpose is to prevent 
transitory price rises and cushion the effect of permanent increases, but unlike its predecessors, 
it is not aimed at totally preventing the rise being passed on to the consumer; instead, where 
there are rises, they are gradually passed on by means of a price band system. 
23. Chile has a diversified financial sector, with a high degree of financial intermediation and 
international integration. During the review period , Chile made a series of proposals to adapt its 
banking rules to the Basel III criteria, but the complete implementation of these criteria will 
require amendments to the legislation. The Chilean financial sector operates within a supervisory 
and regulatory framework that has been deemed adequate given the size of the economy, with 
assets that exceed 200% of GDP. It has a significant level of foreign participation, both in banking 
and in insurance and pension funds. Access to the market is free of restrictions, although some 
conditions or requirements are imposed in certain instances. For example, for reasons of national interest, approval is required for a person  to acquire more than 10% of a bank's capital. 
Similarly, foreign insurance companies may market international maritime transport, international 
commercial aviation and transit goods insurance directly, but only if they are established in 
countries with which Chile has an international trea ty that allows such insurance to be effective. 
24. The General Law on Telecommunications provides  for free and equal access to the use of the 
radio frequency spectrum. Access is granted by means of concessions, permits or licences. 
Equality of access to telecommunications networks finds expression in the obligation upon the WT/TPR/S/315 • Chile 
 
- 11 - 
 
  holders of public telecommunications services and intermediate connection services concessions 
to grant access to those who request it. The Telecommunications Law was amended in 2010 to include the rights for Internet users and obligations for Internet service providers. 
25. Chilean commercial aviation policy establis hes the principles of free market entry, 
free pricing and minimum official intervention, and is designed to create the optimum conditions 
of competition among all the companies with an interest in Chile's air transport system. As a result, foreign companies have open access to the Chilean air transport market, provided that 
they comply with the technical requirements. In 2012, provisions were introduced to strengthen 
cabotage policy, allowing a foreign company free access without reciprocity. However, the principle of reciprocity applies to the entry of foreign companies into the international air transport market. There are no restrictions on the participation of foreign investors in airport concessions. 
While Chile's maritime transport policy is based on reciprocity, in practice, Chile applies more 
flexible and pragmatic criteria with respect to international maritime traffic cargoes. Similarly, although in principle cabotage is reserv ed for vessels registered in Chile, in practice, 
exceptions are permitted. To register a merchant vessel in Chile a majority of the capital must be 
owned by Chilean natural or legal persons. There are ten State port enterprises that operate directly or through port concessions or leasing agreements. 
 
 WT/TPR/S/315 • Chile 
 
- 12 - 
 
  1  ECONOMIC ENVIRONMENT 
1.1  Structure and trend of the economy 
1.1.  The Chilean economy did not escape the effects of the global economic crisis, as gross 
domestic product shrank in 2009, but it was quickl y able to recover, thanks to higher mineral 
prices and the room for manoeuvre afforded to it by its prudent management of economic policy in 
the upswing of the business cycle. This enabled it to present a solid fiscal position at the start of 
the crisis, with a surplus and low level of borrowing (see below), a sufficient level of international 
assets at the central bank, and a sound and adequa tely regulated and supervised financial system, 
with good capitalization ratios. 
1.2.  Nonetheless, as noted by the Organisation for Economic Co-operation and Development 
(OECD), Chile's growth over the last decade has been driven mainly by factor accumulation, rather 
than by a substantial increase in productivity.1 The same observation has also been made by the 
International Monetary Fund (IMF), which noted th at Chile's productivity grew by just 0.4% per 
year between 2000 and 2013.2 The OECD also notes that, while there have been recent signs of a 
revival of activity growth, there is little corporate investment in research and development (R&D), 
the results of innovation are weak, and technological progress has suffered from a shortage of graduates in the areas of science, technology and engineering management. 
1.3.  Following the recession in 2009, the growth path has been regained since 2010, with 
the economy expanding at rates above 5% in the period 2010-2012. Growth slowed 
in 2013 (4.1%), however, and particularly in 2014 when real GDP expanded by just 1.9%, mainly owing to weaker investment. Between 2009 and 2014, GDP grew at an average annual rate 
of 3.6% in real terms, down from the 5.2% achieved in 2003-2008, which was described in Chile's 
previous Trade Policy Review (Table 1.1). 
1.4.  Reflecting the country's relatively rapid economic growth, per capita GDP rose to 
roughly US$14,500 in 2014, well above the US$10,180 recorded in 2009. The World Bank 
estimates Chile's per capita GDP in purchasing power parity terms at US$21,990 for 2013.
3 
1.5.  During the period under review, Chile conti nued to make headway on reducing poverty. 
The proportion of the population living below the poverty threshold fell to 14.4% in 2011, well 
below the 20.6% recorded in 20004; and just 0.8% of the population in 2011 were living on less 
than US$2 a day. Nonetheless, despite this progress, income inequality remains relatively high, as evidenced by a Gini coefficient of 50.8% in 2011.
5 
1.6.  The sectoral composition of the economy has not changed significantly during the review 
period, apart from fluctuations in the mining sector, as shown in Table 1.1. As is usually the case in the Chilean economy, which depends heavily on the mining sector, the sectoral composition 
measured in current pesos suffered variations caused by the expansion of mining at the 
start of the review period, and then its relative decline in current GDP terms in 2013 and 2014. This mainly reflects variations in the copper price. The mining sector's share of 
current GDP was 11.2% in 2014, compared to 12.8% in 2012. In contrast, the share of the 
manufacturing sector remained broadly constant, at  around 11% of GDP. While agriculture staged 
a slight revival, in relative terms, while services accounted for 65% of GDP in 2014. In particular, business services grew as a proportion of GDP, while most other services maintained their shares. 
                                               
1 OECD (2013), OECD Economic Surveys, Chile, Overview , October 2013. Viewed at: 
http://www.oecd.org/eco/surveys/Overview Chile spanish.pdf . 
2 IMF (2014), Chile 2014 Article IV Consultation - Staff Report; Press Release; and Statement by the 
Executive Director for Chile. IMF Country Report No. 14/218. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2014/cr14218.pdf . 
3 Online information from the World Bank, viewed at: 
http://datos.bancomundial.or g/indicador/NY.GDP.PCAP.PP.CD . 
4 Online information from the World Bank, viewed at: http://data.worldbank.org/country/chile . 
5 Online information from the World Bank, viewed at: 
http://datos.bancomundial.org/indicador/SI.POV.GINI . WT/TPR/S/315 • Chile 
 
- 13 - 
 
  1.7.  During the review period, the unemployment rate fell from 9.6% in 2009 to 6% in 2013, 
before rising slightly to average 6.4% in 2014 (Table 1.1).6 Nominal wages rose 
by 33.8% between 2009 and 2014. 
1.8.  As regards GDP by type of expenditure, the 2009-2014 period witnessed major fluctuations in 
both investment and private consumption. Gross capital formation, in particular, was hit hard by 
the global crisis, and it contracted sharply in 2009 before rebounding strongly in 2010-2012. Nonetheless, the weakening of mine ral prices also led to a sharp slowdown in 
investment, which barely grew in 2013 before shrinking substantially in 2014 by 6.1% in relation 
to the previous year's level. The decline was particularly steep in the case of machinery and equipment (down by 18.8%), mainly reflecting a drop in mining investment, given the lower 
mineral prices. 
1.9.   Gross capital formation relative to GDP fell substantially during the global financial crisis, 
to a rate of 20.3% in 2009. When economic gr owth resumed, the gross capital formation rate 
picked up again, especially in the period 2010-2012, to reach 25.5% of GDP in the latter year. 
In 2013 and 2014, lower copper prices had an impact on investment volumes, and gross fixed 
capital formation (GFCF) dropped to 21.4% of GDP in 2014. 
Table 1.1 Structure and tren d of the economy, 2009-2014 
 2009  2010  2011  2012 2013 2014  
Gross domestic product (GDP)       
GDP at current prices (Ch$ billion) 96,444  110,998.7  121,319.5  129,027.6 137,029.0 147,184.9  
GDP at current prices (US$ million)  172,340  217,556  251,004  266,399 277,022 258,038  
Real GDP (Ch$ billion, at 
constant prices) 92,875.3  98,219.0  103,954.7  109,627.6 114,260.7 116,424.8  
Real GDP (growth rate %) -1.0  5.8 5.8 5.5 4.2 1.9  
GDP per capita (current 
Ch$ thousand) 5,697  6,494  7,038  7,447 7,815 8,270  
GDP per capita (current US$)  10,180  12,727  14,552  15,308 15,779 14,508  
Share of GDP by activity (percent ages of GDP at current prices)  
Agriculture and forestry 2.8  2.7 2.8 2.6 2.6 2.7  
Fishing 0.4 0.5 0.5 0.4 0.3 0.3 
Mining 13.1  16.0 14.9 12.8 11.3 11.2  
Copper mining 12.1 14.7 13.3 11.3 9.9 10.0 
Other mining activities 1.1  1.2 1.6 1.5 1.4 1.2  
Manufacturing industry 11.3 10.8 11.0 10.8 10.8 11.3 
Food  2.8  2.6 2.6 2.5 2.7 3.2  
Beverages and tobacco 1.7 1.5 1.5 1.6 1.6 1.6 
Textiles, clothing and leathe r 0.3 0.3 0.3 0.3 0.3 0.2  
Wood and furniture 0.5 0.5 0.5 0.4 0.5 0.6 
Cellulose, paper and printed matte r 1.3  1.4 1.3 1.0 1.0 1.2  
Oil refining 0.7 0.7 0.7 0.7 0.8 0.9 
Chemicals, rubber and plastics 1.6  1.5 1.5 1.6 1.5 1.4  
Non-metallic minerals and basic 
metal industries 0.7 0.7 0.7 0.6 0.5 0.5 
Metal products, machinery and 
equipment, other 1.8 1.8 1.8 1.9 1.8 1.7  
Electricity, gas and wate r 3.1 2.8 2.8 2.5 2.4 2.3 
Construction 7.5  6.8 6.9 7.4 7.6 7.3  
Commerce 7.7 8.0 8.0 8.2 8.3 8.0 
Restaurants and hotels 1.5  1.4 1.5 1.6 1.7 1.8  
Transport 4.3 4.3 3.9 4.2 4.2 4.2 
Communications 2.1  2.0 2.0 1.9 1.9 1.8  
Financial services 5.3 4.8 5.0 5.2 5.2 5.1 
Business services 12.5  12.0 12.7 13.4 13.9 13.9  
Real estate 4.9 4.8 4.8 5.0 5.1 5.2 
Personal servicesa 11.0  10.7 10.8 11.1 11.6 11.7  
Government 4.6 4.4 4.3 4.4 4.5 4.6 
Value added tax 7.4  7.4 7.7 8.0 8.1 8.2  
Import duties 0.5 0.6 0.5 0.5 0.5 0.5 
GDP by expenditure category (real growth rate)b 
Domestic demand -5.7 13.5 9.4 7.3 3.7 -0.6 
Total consumption 0.8  9.7 7.8 5.7 5.5 2.5  
                                               
6 National Institute of Statistics (INE) (2015), Empleo Trimestral , Edición No. 195 , 30 January 2015. 
Viewed at: http://www.ine.cl/descarga.php?arch ivo=576&codigo=dO5Y9L2UGVBRWh6S . WT/TPR/S/315 • Chile 
 
- 14 - 
 
   2009  2010  2011  2012 2013 2014  
Consumption of households 
and PNPIb -0.8 10.8 8.9 6.1 5.9 2.2 
Durable goods -16.2  39.0 21.3 12.5 14.2 -1.9  
Non-durable goods -0.8 8.9 7.7 5.1 5.5 1.8 
Services 2.1  8.2 7.5 5.7 4.5 3.3  
Government consumption 9.2 4.6 2.5 3.5 3.4 4.4 
Gross fixed capital formation  -12.1  11.6 15.0 11.6 2.1 -6.1  
Construction and other works  -7.2 1.4 9.8 8.7 5.7 0.9 
Machinery and equipment -20.9  33.3 23.8 16.4 -3.5 -18.8  
Exports of goods and services  -4.5 2.3 5.5 0.1 3.4 0.7 
Exports of goods -2.9  -0.4 4.1 1.8 3.6 1.8  
Agriculture,forestry and fishing 0.2 2.4 12.3 -1.1 5.1 -7.7 
Mining 1.1  0.7 -1.5 2.6 5.0 1.6  
Coppe r 1.3 0.4 -2.0 2.1 6.0 1.5 
Other -1.2  5.1 5.2 7.5 -4.9 2.6  
Industry -8.4 -2.8 13.8 0.9 1.0 4.3 
Exports of services -13.6  19.3 13.7 -9.8 2.0 -6.3  
Imports of goods and services  -16.2  25.5 16.0 4.8 1.7 -7.0 
Imports of goods -18.6  28.3 15.6 7.1 1.1 -7.2  
Agriculture,forestry and fishing -29.2  8.1 25.8 11.6 -1.7 -0.8 
Mining -6.5  0.3 17.4 -7.5 9.1 -3.2  
Industry -20.6  33.2 15.2 9.6 0.0 -7.9 
Imports of services 1.6  11.4 17.9 -9.2 5.9 -5.5  
Employment       
Rate of unemployment (%) 9.6  8.3 7.2 6.5 6.0 6.4  
Nominal index of hourly wages 
(2009=100), Percentage annual 
cumulative variation  0.0 4.7 6.3 6.3 5.5 7.2 
Population (million) 16.9  17.1 17.2 17.4 17.6 17.8  
Other economic indicators (% 
GDP)       
Gross national saving 22.3  24.0 22.5 21.7 20.6 20.2  
Foreign saving -2.0 -1.7 1.2 3.6 3.7 1.2 
Gross capital formation 20.3  22.3 23.7 25.5 24.3 21.4  
Domestic demand -5.7 13.5 9.4 7.3 3.7 -0.6 
Disposable gross national income -1.0  6.4 6.2 6.6 4.7 2.3  
Disposable real gross national income 0.5 12.3 6.0 4.7 3.6 1.9 
a Includes education, health and other services. 
b Private non-profit institutions. 
Source: Central Bank of Chile. 
1.10.  Having faltered in 2009 in the wake of the global crisis, private consumption grew strongly 
between 2010 and 2013, before weakening again in 2014. Consumption was sustained by the increase in disposable income resulting from a period of rapid growth fuelled largely by the mining 
sector bonanza. Private consumption has made a positive contribution to GDP throughout the 
period under review except in 2009. Government expenditure grew substantially in 2009 on the back of the expansionary measures deployed to cope with the global crisis. In subsequent years 
the pace of growth has been slower, but always positive. Total domestic demand, for its part, 
contributed negatively to GDP growth in 2009, but was again the mainstay of growth in the 
period 2010-2013. Global domestic demand made a negative contribution to GDP growth 
in 2014, since the fall in investment could not be offset by the positive, albeit moderate, trend of 
private consumption (up by 2.5% in relation to the previous year). 
1.11.  Despite the burgeoning export growth, driven mainly to the rise in the copper price, net 
exports of goods and services have contributed ne gatively to real GDP for most of the period 
reviewed. This is because imports grew more strongly than exports in real terms. The exceptions 
to this were the years of weak domestic demand, 2009 and 2014, in which net exports made a positive contribution, since imports declined. The years in which net exports made a negative 
contribution coincide with periods of heavy importation of capital goods, owing to high rates of 
investment, and to a lesser extent an increase in fuel imports. 
1.12.  Chile's gross national saving as a percentage of  GDP exceeded the rate of gross fixed capital 
formation in 2009 and 2010, which meant negative external saving in those years (i.e. a surplus 
on the current account of the balance of payments). Since 2011, rapid investment growth has given rise to the opposite situation, with positive external saving rates having to finance the WT/TPR/S/315 • Chile 
 
- 15 - 
 
  excess of investment over saving. The domestic saving rate has been declining since 2010, since 
domestic demand has been outpacing disposable income; in 2014, it represented 20.2% of GDP, compared to 24% in 2010. 
1.2  Fiscal policy 
1.2.1  General characteristics and trends during the period under review 
1.13.  Responsibility for formulating and implementing fiscal policy rests with the Ministry of 
Finance. Pursuant to Law No. 20.128 of 2006 (the Fiscal Accountability Law), Chile has been 
maintaining a policy of structural balance with certain flexibilities. This policy aims to ensure 
medium-term fiscal stability, while at the same time making it possible to cope with critical situations by using countercyclical measures in periods when the economy is growing more slowly.
7 In general, this fiscal policy seeks to maintain structural surpluses and provident funds 
which can serve as future cushions. The target su rplus, initially set at 1% of GDP, was relaxed 
in 2008 and 2009 to 0.5% of GDP and 0% in 2010, as a result of the global financial crisis. The targets for 2011-2015 have envisaged deficits of between 1% and 1.8%.
8 Since 2014, the aim 
has been to try to restore the medium-term structural balance (see below). 
1.14.  As a result of the deterioration of the global economy, the fiscal balance worsened as from 
the final quarter of 2008, and the structural balance targets for 2009 and 2010 could not be met. 
In those years, there were fiscal deficits of 4.4%  and 0.5% of GDP, respectively. The fiscal balance 
was in surplus again in 2011 and 2012, which were years of rapid economic growth (Table 1.2). 
Table 1.2 Non-financial operations of the central government, 2008-2014 
(% of GDP) 
 2008  2009  2010  2011  2012 2013 2014  
Income 24.2  19.0 21.5 22.7 22.2 21.0 20.7  
Net tax revenue 17.6 13.8 15.8 17.4 17.6 16.7 16.7  
Unwrought coppe r 3.4  1.7 2.7 2.3 1.5 1.0 0.9  
Pension contributions 1.4 1.4 1.3 1.3 1.4 1.4 1.4  
Grants 0.1  0.1 0.1 0.1 0.1 0.1 0.0  
Property income 0.8 0.7 0.4 0.5 0.5 0.5 0.5  
Operating income 0.6  0.6 0.5 0.5 0.5 0.5 0.5  
Other income 0.4 0.8 0.6 0.7 0.7 0.8 0.7  
Expenditure 16.7  19.0 18.1 17.3 17.7 18.0 18.5  
Personnel 3.8 4.4 4.2 4.1 4.2 4.3 4.4  
Consumer and producer goods and services  2.0 2.3 2.1 2.2 2.0 2.0 2.2  
Interest 0.5 0.5 0.5 0.6 0.6 0.6 0.6  
Subsidies and grants 6.1  7.0 6.7 6.3 6.7 7.0 7.3  
Pension payments 4.4 4.8 4.5 4.2 4.2 4.1 4.0  
Gross operating balance (public saving) 7.5  0.0 3.5 5.4 4.5 3.0 2.2  
Net acquisition of non-financial assets 3.6 4.4 3.9 4.1 4.0 3.6 3.8  
Sale of physical assets 0.0  0.1 0.0 0.0 0.0 0.0 0.0  
Investment 2.1 2.6 2.1 2.1 2.1 2.0 2.0  
Capital transfers 1.5  1.9 1.8 1.9 1.9 1.7 1.8  
Total income 24.2 19.0 21.5 22.7 22.2 21.0 20.7  
Total expenditure 20.3  23.4 22.0 21.4 21.6 21.6 22.4  
Net lending/Net borrowing (effective 
surplus/deficit) 3.9 -4.4 -0.5 1.3 0.6 -0.6 -1.6 
Memorandum item        
General government        
Total income 25.8  20.7 23.1 24.3 23.9 22.7 n.a.  
Total expenditure 21.8 25.0 23.4 22.9 23.2 23.2 n.a. 
Net lending/net borrowing 3.9  -4.2 -0.4 1.4 0.7 -0.5 n.a.  
Municipal         
Total income 2.8  3.0 2.9 2.9 3.1 3.2 n.a.  
Total expenditure 2.8 2.9 2.8 2.8 3.0 3.0 n.a. 
                                               
7 The structural balance policy cons ists of isolating the cyclical co mponent of the fi scal accounts from 
the fiscal deficit. This is done by setting targets that aim to reflect what the net balance of the fiscal accounts 
would have been each year if the economy had follo wed its medium-term path in  the year in question, 
excluding cyclical fluctuations. 
8 The targets were: 2011, 1.8%; 2012, 1.5% ; 2013, 1.0%; 2014, 1.0%; and 2015, 1.1%. WT/TPR/S/315 • Chile 
 
- 16 - 
 
   2008  2009  2010  2011  2012 2013 2014  
Net lending/net borrowing 0.0  0.1 0.1 0.1 0.1 0.1 n.a.  
Total public debt (% of GDP) 4.9 5.8 8.6 11.1 12.0 12.8 13.7 a 
Gross domestic debt (US$ million) 4,400  8,566  16,262  20,647  26,288 28,355 27,836a 
External debt (US$ million) 2,935  2,530  4,095  5,281  6,135 5,160 4,998a 
n.a. Not available. 
a At September 2014. 
Source: Central Bank of Chile and Ministry of Finance. 
1.15.  In 2013, weakening economic growth was accomp anied by a deteriorating fiscal situation: 
revenue fell as a percentage of GDP and expenditure increased, to generate a deficit 
of 0.6% of GDP. In 2014, fiscal income fell slightly in relation to GDP, partly reflecting the slower 
economic growth, whereas the share of expenditur e increased, so the fiscal outturn worsened, and 
there was an effective deficit of 1.6% of GDP. 
1.16.  Decree No. 892 of 3 June 2014 laid the foundations for fiscal policy in the 
period 2014-2018.9 The decree provides that the fiscal poli cy to be implemented during the period 
will be guided by the concept of structural balance, reflecting the central government's trend 
financial situation, i.e. excluding the cyclical effect on public finances of the fluctuations in 
economic activity, the copper price, and other similar factors. In this way, public expenditure is decoupled from the natural and cyclical trend of fiscal income, and is associated with the trend of structural fiscal income to avoid making drastic adjustments in the level of public expenditure in 
the event of adverse economic events, without en dangering the stability of the fiscal accounts in 
the long term, and to allow for saving in periods of positive economic events. 
1.17.  Decree No. 892 provides that, in view of the st ructural deficit prevailing in late 2013, the 
fiscal target is to gradually converge towards structural balance equivalent to 0% of annual GDP 
by 2018. This target is contingent on implementing the Tax Reform Law (see below), which is expected to generate the tax revenue needed to  achieve such convergence. Moreover, the Decree 
stipulates that this target will be maintained unless objective macroeconomic circumstances 
warrant any change. This is expected to lay the foundations for regaining a structural surplus in the years after 2018, which is considered necessary to ensure a dynamic of asset accumulation in order to deal with future commitments, co ntingent liabilities and possible emergencies 
in the public sector. 
1.18.  It also provides for efficient rationalization of public expenditure, by a more in-depth 
evaluation of the quality and public impact of investment programmes. The 2015 budget stresses 
expenditure on education and health, allocating the estimated US$2.3 billion to be obtained from 
the tax reform (see below) in 2015 to these categories (US$1.2 billion to education and US$1.1 billion to public health). In any even t, the 2015 budget is expansionary and geared to 
stimulating the economy, because it starts from a situation of sharp slowdown in domestic 
demand. Accordingly, public expenditure in 2015 is expected to grow by 9.8% compared to the 2014 budget, and public investment is expected to increase by 27.5%, to reach a level of US$6,979.2 million, the highest in Chile's history.
10 
1.2.2  Tax reform 
1.19.  The Tax Reform Law (Law No. 20.780) was passed by the National Congress 
on 10 September 2014.11 The key objectives of the reform are to: (i) increase the tax burden 
by 3.02% of GDP (about US$8.3 billion) to financ e, from permanent revenue sources, the standing 
expenses of the education reform and other social protection policies, and to reduce the central government's structural deficit; (ii) enhance tax equity, improving the income distribution; 
(iii) introduce new and more efficient incentive mechanisms for saving and investment; 
and (iv) reduce tax evasion and avoidance. 
                                               
9 Law No. 20.128, on Fiscal Accountability, requires th e President of the Republic to define the bases of 
the fiscal policy to be applied during his or her ad ministration, including an explicit statement on the 
implications and effects that policy will have on the central government  structural balance. 
10 Ministry of Finance (2014), Prioridades de la Ley de Presupuestos 2015 . Viewed at: 
http://www.hacienda.cl/especiales/presupuesto/presupuesto-2015/prioridades-de-ley-de-presupuestos-
2015.html . 
11 Law No. 20.780 was published in the Official Journal ( Diario Oficial ) on 29 September 2014. WT/TPR/S/315 • Chile 
 
- 17 - 
 
  1.20.  The authorities have decided to implement th e reform gradually over a four-year period. 
The Ministry of Finance has defined the design and execution of an implementation plan, which includes issuing regulations specified in the law, adapting operational processes and information systems, and upgrading infrastructure, among other things. 
1.21.   The 2014 Tax Reform is the second such reform in the last 30 years. Until its adoption, 
the Chilean tax system was based on the 1984 Tax Reform, which established an integrated income-tax system, and on the amendments intr oduced with the reform of 1990. Nonetheless, 
the previous system favoured income from capital over labour income, since tax payment could 
only be deferred in the case of business profits and income from capital was eligible for First Category Income Tax only in a given period, whereas all labour income paid the final tax. The authorities consider that this resulted in low progressiveness and generated a high level of 
inequity owing to the rate differentials between capital and labour income taxes and a low level of 
revenue from direct taxes. 
1.22.  The changes introduced by the tax reform cover six areas: (i) changes to income taxation; 
(ii) taxation of the real estate market; (iii) stamp duties; (iv) environmental taxes; (v) corrective 
taxes (tobacco, alcoholic beverages and non-alcoholic beverages containing added sugar); and (vi) measures to control tax evasion and avoidance. Two alternative tax regimes have been 
established as part of the process of reforming income taxation: the Integrated Regime, under 
which attribution of incomes is provided, and the Semi-integrated Regime. Companies are required to choose one of these two systems, and, once aff iliated to one of them, they must stay in that 
regime for at least five years. The integrated regime with attribution of incomes requires resident 
private individuals and taxpayers without domicile or residence in the country to pay tax according 
to the total amount of capital income generated by the firms which they directly or indirectly own. 
For that purpose, a system of attribution is established in which the firm's earnings, in the year in 
which they are generated, are attributed to its shareholders according to their share in the 
ownership or profits. The income thus attributed is added to the individual's tax base and taxed according to the corresponding Complementary Global Tax
12 or Additional Tax brackets.13 This 
system maintains total integration between corporate and individual income taxation, as in the 
previous legislation. Under this regime, the rate of First Category Income Tax paid by firms rises to 25%, whereas the top rate of the Complementary Global or Additional Tax is 35%. 
1.23.  The semi-integrated taxation system, in contrast, requires company shareholders to pay 
taxes only on the withdrawals, remittances or di vidends they obtain from the company, and it 
defers the payment of final taxes in respect of th e company's retained profits. Firms that affiliate 
t o  t h i s  s y s t e m  m u s t  p a y  F i r s t  C a t e g o r y  I n c o m e  T a x  a t  a  r a t e  o f  2 7 % .  I t  i s  a l s o  e s t a b l i s h e d  
that 65% of this tax can be deducted as a cr edit against the final tax assessment. Thus, the 
effective maximum rate to be paid in respect of withdrawals, profit shares, or remittances in the case of taxpayers who have a nominal rate of Complementary Global and Additional Taxes 
of 35%, will reach a level of 44.45%. 
1.24.  Another important feature of the reform is that it lowers the top marginal rate of 
Complementary Global Tax from 40% to 35%, and raises the rate of First Category Income Tax to 25% or 27%, depending on the regime chosen. In addition, for firms in the agriculture, mining, 
                                               
12 Complementary Global Tax is levied on natural pers ons domiciled or resident in Chile, in respect of 
their global first or second category taxable income. It is assessed on a progressive scale of rates according to 
income bracket, starting with an exempt initial bracket,  and rising to a top bracket subject to a marginal rate 
of 40%. The rates scale is applicable to a tax base that  is grossed up by an amou nt equivalent to the First 
Category Income Tax withheld on th e income received as shareholder dividends, which is subsequently 
deducted as a credit. Online information from the Internal Revenue Service (SII), viewed at: 
http://www.sii.cl/portales/inversionistas/imp_chile/impuesto_global.htm . 
13 The Additional Tax is levied on income obtained  from Chilean sources by natural or legal persons 
without domicile or residence in Chile, when the income is available in Chile to the person living abroad. 
The general rate is 35%, although lower rates apply to some types of income. Online  information from the SII, 
viewed at: http://www.sii.cl/portales/inversionis tas/imp_chile/impuesto_adicional.htm . WT/TPR/S/315 • Chile 
 
- 18 - 
 
  and transport sectors, the sales revenue limits for affiliation to the presumed income regime 
are lowered.14 
1.25.  In addition, several changes were made for micro, small and medium-sized enterprises 
(MSMEs), as an incentive to saving and investment (with up to 100,000 UF in sales). Such firms 
may deduct up to 20% (under the attributed in come system) or 50% (under the semi-integrated 
system) of the undistributed profits reinvested in the company from their taxable income.15 
In both cases, an upper limit of 4,000 UF is set for the reduction of the tax base. In addition, the 
credit in respect of fixed asset purchases was increased from 4% to 6% of the value acquired for 
firms with annual sales of up to 25,000 UF. For the incomes of firms with annual sales of up to 100,000 UF, a linear formula is used to calculate this benefit. Lastly, since 1 January 2015, firms with sales of up to 25, 000 UF have been able to defer payment of VAT 
for up to 2 months, and, as from 1 January 2016, th is will be extended to firms with sales of up 
to 100,000 UF. In addition, as from 2015 the re form repeals the regime provided for in 
Article 14 bis of the Income Tax Law, which allowed firms and their owners to avoid paying taxes 
by retaining profits in the enterprise. It also re pealed the regime exempting the portion of the tax 
base up to 1,440 UTM from the First Category Income Tax.
16 
1.26.  The reform introduces two types of environmental levies. Firstly, a tax is imposed on 
fixed-source carbon dioxide (CO2) emissions, of US$5 per tonne, and on particulate material (PM), 
nitrogen oxide (NOX) and sulphur dioxide (SO2) emissions, for which the rate is calculated according to the social cost of the pollution, ba sed on the different dispersion capacities of the 
pollutants and the size of the population exposed.
17 Secondly, new light and medium-sized motor 
vehicles are taxed in proportion to the environmental damage that the vehicle in question causes 
during its useful life, based on their NOX emissions, their urban yield and their sale price. In addition, "corrective taxes" are imposed on ci garettes, alcoholic beverages, and non-alcoholic 
beverages containing added sugar, to discourage th eir consumption. In the case of non-alcoholic 
beverages containing added sugar, the additional tax is raised from 13% to 18%, whereas the tax 
on non-alcoholic beverages not containing added sugar is lowered from 13% to 10%. For alcoholic 
beverages, the excise duty on beer and wine is raised from 15% to 20.5%, and on spirits with a 
higher alcohol content the rate of duty is  increased from 27% to 31.5%. In addition, 
the tax structure on tobacco is altered by increasing the excise duty on tobacco from 0.000128803 UTM to 0.001034240 UTM per cigarette and by lowering the ad valorem  
duty from 60.5% to 30%. 
1.27.   The tax reform also introduces a number of measures to reduce evasion and avoidance, 
including the incorporation of a general anti-avoidance clause, under which, when defining taxable 
events, account will be taken of the economic significance of the operations ahead of the 
legal definition. 
1.2.3  Sovereign funds 
1.28.  Chile has a policy for managing the savings generated as a result of applying the structural 
balance rules. In this regard, sovereign funds constitute a fundamental part of the fiscal policy implemented by the Chilean government, particularly in relation to the sustainability of that policy 
over time. Its objective is to contribute to macroeconomic stability and to finance certain 
contingent liabilities. 
                                               
14 Presumed income is the income which, for the pu rposes of the Income Tax Law is inferred on the 
basis of certain known facts such as: the fiscal valuatio n of agricultural and non-agricultural properties; the 
taxable value of vehicles; and the annual value of sales of mining products. Online information from the SII, 
viewed at: http://www.sii.cl/preguntas_frecuentes/renta/001_002_0627.htm . 
15 The Unidad de Fomento  (UF) is an inflation-linked unit of account created by Decree No. 40 of 
20 January 1967. It is used for all types of bank or financial loans involving private-sector agents, as well as investments, contracts, and in some cases fees. The values of determined on a daily basis. The value of the UF at 31 March 2015 was Ch$24,622.78. 
16 The Unidad  Tributaria Mensual  (UTM) created on 31 December 1974 is used for taxation and fines, 
and is updated monthly according to inflation. Unlike the UF, it is not used as a financial instrument. The value 
of the UTM in March 2015 was Ch$43,068. 
17 Specifically, the tax is levied on establishments whose sources consist of boilers and turbines, which 
individually or jointly represent an installed power of at least 50MWt. WT/TPR/S/315 • Chile 
 
- 19 - 
 
  1.29.  There are two sovereign funds: the Economic and Social Stabilization Fund (FEES) and the 
Pension Reserve Fund (FRP). The sovereign fixed income portfolios of the two funds are managed 
by the Central Bank of Chile, and firms specialize d in portfolio management have been contracted 
to invest the portfolios of shares and corporate bonds. The Sovereign Funds Unit of the Ministry of 
Finance is responsible for monitoring the performance of each fund manager. In addition, 
a Financial Committee, consisting of six experts, pr ovides advice on defining the funds' investment 
policy. The resources of both funds are invested wholly abroad. 
1.30.  The FEES was officially created through Decree having Force of Law No. 1 of 2006, of the 
Ministry of Finance, based on the prov isions of the Fiscal Accountability Law.18 The FEES makes it 
possible to finance any fiscal deficits, repay the public debt, and finance contributions to the FRP. It thus helps to ensure that fiscal expenditure is not unduly affected by fluctuations in the global 
economy or the volatility of income obtained from  taxes, copper and other sources. Each year the 
FEES receives the positive balance of the effectiv e fiscal surplus after subtracting contributions to 
the FRP, where appropriate, amortization payments  on the public debt, and advance contributions 
made to the fund in the previous year. 
1.31.  The current FEES investment policy, based on the recommendations made by the 
Financial Committee, entered into force in August 2013, with the aim of improving the coverage 
capacity of fiscal income compared to the previous  policy. The main objective is to maximize the 
cumulative value of the fund to partially cover cyclical falls in tax revenue. This is reflected in the selection of a highly liquid investment portfolio, of low credit risk and low volatility. From its creation in March 2007 until December 2014, the FEES received contributions totalling 
US$21,765.7 million. The fund's mark et value has fallen from a peak of US$20,211 million in the 
fourth quarter of 2008, owing to the withdrawal s made mainly in 2009 to cope with the global 
financial crisis.
19 At December 2014, the size of the fund was US$14,689 million, 27% below its 
peak value.20 In 2014, the fund's yield in US dollars was negative, affected by the sharp 
depreciations experienced by the currencies in which it is invested in relation to the US dollar. The return earned by the FEES from its cr eation until the fourth quarter of 2014 has 
averaged 2.82% per year in US dollars, and 4.36% in Chilean pesos.
21 
1.32.  The FRP was set up on 28 December 2006, with an initial contribution of US$604.5 million. 
Its purpose is to support the financing of fiscal liabilities arising from the State-guaranteed basic solidarity pensions in respect of old age and disability, as well as solidarity pension contributions. 
This complements the financing of future pensio n contingencies. The resources of the FRP are 
increased each year by a minimum amount equivalent  to 0.2% of the previous year's GDP. If the 
effective fiscal surplus exceeds 0.2% of GDP, the FRP receives a contribution equivalent to that 
surplus, up to a maximum of 0.5% of GDP. From its creation in December 2006 until the 
fourth quarter of 2014, the FRP received contri butions totalling US$6.94 billion, and its market 
value stood at US$7,943.7 million in late December 2014. 
The yield earned by the FRP from its 
creation until the fourth quarter of 2014 has averag ed 4.04% per year in US dollars and 5.58% in 
terms of Chilean pesos.22 
                                               
18 The FEES was set up in March 2007 with an init ial contribution of US$2,580 million, of which 
US$2,563.7 million corresponded to the balance of the old Copper Income Stabilization Fund. Online information from the Ministry  of Finance, viewed at: http://www.hacienda.cl/fo ndos-soberanos/fondo-de-
estabilizacion-economica-y.html . 
19 As of December 2014, total withdrawals from the FEES amounted to US$9,927 million, of which 
US$9,278 million were made in 2009 to cope with the financial crisis of that year. The other withdrawals have been made to finance the statutory contributions to the FRP. 
20 The assets of the FEES at that date consisted of bank deposits ( 25.7%), treasury bills and sovereign 
bonds (63.0%), inflation-linked sovereign bonds (3.5%), and shares (7.8%). Ministry of Finance (2014), Fondo 
de Estabilización Económica y Social. Informe Mensual a diciembre de 2014. Viewed at: 
http://www.hacienda.cl/fondos-soberanos/fondo-de-est abilizacion-economica-y/informes-mensuales/informe-
diciembre-2014.html . 
21 Ministry of Finance (2014), Fondo de Estabilización Económica y Social Informe Trimestral a 
septiembre de 2014. Viewed at: http://www.hacienda.cl/fondos-soberanos/fondo-de-estabilizacion-economica-
y/informes-trimestrales/informe-julio-septiembre-2014.html . 
22 As of December 2014, the FRP's assets consisted of sovereign and other related bonds (47.4% of 
total), inflation linked bonds (17.1%) corporate bonds (20.3%), and shares (15.2%). Ministry of Finance 
(2014), Fondo de Reserva de Pensiones. Informe Mensual a diciembre de 2014. Viewed at: 
http://www.hacienda.cl/fondos-soberanos/fondo-de-reserva-de-pensiones/informes-mensuales/informe-
diciembre-2014.html . WT/TPR/S/315 • Chile 
 
- 20 - 
 
  1.2.4  Public debt 
1.33.  The Public Debt Office proposes the borrowing strategy to the Minister of Finance and 
implements his decision on Treasury bond issues and placements, the main objective of which is to 
support the liquidity and depth of the local financ ial market, and to establish benchmark interest 
rates to facilitate access by Chilean firms to the capital market. The gross debt of the 
central government grew during the period under review, rising from 6% of GDP in 2009 to 12.8% in 2013.
23 
1.34.  As of end-September 2014, the central government's gross debt stood at 
Ch$19,754.7 million, equivalent to 13.7% of GD P, which represents a nominal increase 
of 12.5% compared to the balance outstanding in December 2013. Nonetheless, given its investment in financial assets, which amounted to the equivalent of 19.6% of GDP in 
September 2014, the central government had a net creditor position equivalent to 5.9% of GDP at 
that date. Moreover, the net debt of the Central Bank of Chile at end-September 2014 represented 13.4% of GDP, which, considering its assets of 16.8% of GDP, gives a net creditor 
position equivalent to 3.4% of GDP. The consolid ation of the central government with the central 
bank gives a gross debt of 26.4% of GDP in September 2014, whereas the net consolidated 
balance was a creditor position of 9.3% of GDP.  The amortization profile of the consolidated 
debt of the central government and central bank projects a relatively stable path 
until 2020. Between 2015 and 2020, amortizati on payments falling due should average 
Ch$2,435.56 billion, of which 90.5% is payable in na tional currency or inflation-adjusted national 
currency, and 9.5% are liabilities denominated in foreign currency.
24 
1.35.  The gross debt of public enterprises amounted  to 8.3% of GDP as of June 2014, whereas 
their financial assets totalled 0.9% of GDP, giving a net debt of these firms as a group equivalent to 7.4% of GDP. The State guarantees the debt of public enterprises in cases where financial 
assets are insufficient to cover the amount owed. In this regard, the total guaranteed debt as 
of September 2014 was 1.25% of GDP, corresponding mainly to the debt of the Metro (the company that operates the Santiago subway  system) and that of the state railway company 
(Ferrocarriles del Estado). Another important component of the debt guaranteed by the State is 
the guarantee aimed at financing higher education, authorized through Law No. 20.207, which represented 11.51% of the total domestic guarant eed debt. A total of 87.5% of the guaranteed 
debt has been issued domestically.
25 
1.3  Monetary and exchange rate policies 
1.36.  The monetary policy of the Central Bank of  Chile (BCCh) is aimed primarily at keeping 
inflation low, stable, and sustainable over time.26 Since 2007, the explicit commitment has been 
that annual inflation measured by the consumer price index (IPC) should be situated most of the 
time around 3% per year with a range of tolerance of plus or minus one percentage point. To fulfil this objective, the BCCH targets its monetary policy to ensure that projected inflation is at 3% per 
year over a two-year policy horizon. The central bank implements its inflation targeting policy by 
setting an intermediate target for the nominal interbank interest rate, known as the monetary 
policy rate (MPR). To ensure that the MPR is at the desired level, the BCCh regulates the liquidity (or reserves) of the financial system, using several instruments: open-market operations, 
purchase and sale of short-term notes, and credit lines and cash deposits (extended facilities). 
1.37.  The BCCh believes that gearing monetary policy  towards achievement of the inflation target 
helps to moderate fluctuations in employment and domestic production.
27 It publishes its policy 
                                               
23 Online information from the Mini stry of Finance, viewed at: http://www.hacienda.cl/oficina-de-la-
deuda-publica.html . 
24 Ministry of Finance (2014), Informe de Estadísticas de la Deuda Pública , December 2014. Viewed at: 
http://www.hacienda.cl/oficina-de-la-deuda-publica/est adisticas/deuda-sector-publico/informe-de-estadisticas-
de-la-deuda-846487.html . 
25 Ministry of Finance (2014), Informe de Estadísticas de la Deuda Pública, December 2014. Viewed at: 
http://www.hacienda.cl/oficina-de-la-deuda-publica/est adisticas/deuda-sector-publico/informe-de-estadisticas-
de-la-deuda-846487.html . 
26 Central Bank of Chile (2014), Monetary Policy Report , December 2014. Viewed at: 
http://www.bcentral.cl/publicaciones/politicas/pdf/ipm122014.pdf . 
27 Central Bank of Chile (2014), Monetary Policy Report , December 2014. Viewed at: 
http://www.bcentral.cl/publicaciones/politicas/pdf/ipm122014.pdf . WT/TPR/S/315 • Chile 
 
- 21 - 
 
  decisions through its Monetary Policy Report (IPoM), which appears four times a year (in March, 
June, September and December) and focuses on the main factors that affect the path of inflation. These include the international environment, financial conditions, prospects for aggregate demand, activity and employment, and recent developments in prices and costs. 
1.38.  During the period under review, monetary policy was conducted in three main phases: 
a phase of rapid monetary expansion between 20 08 and 2010; an increasingly tighter phase, 
between 2011 and 2013; and an accommodative phase in 2014 and 2015. The first phase 
corresponded to the measures adopted to counteract the negative effects of the international 
financial crisis on the level of activity of the Chilean economy, against a backdrop of falling inflation. This led the BCCh to implement a policy of aggressive monetary expansion, which resulted in the MPR falling from 8.25% in December 2008 to 0.50% between August 2009 and 
May 2010, before starting to rise again gradually.
28 The MPR attained a maximum of 5.25% in 
December 2011, before stabilizing at 5% between January 2012 and September 2013, at which point it began a new declining phase, dropping to 3% in November 2014. 
1.39.  Following the movements of the MPR, market interest rates dropped substantially 
between 2008 and 2010, before rising again between mid-2010 and late 2013. Since then they have embarked on a new downward trend, coinci ding with a phase of low inflation and weak 
economic growth. The average spread between inte rest rates on loans and deposits has varied 
relatively little in the period under review, betw een 2.7% and 4.8%, which reflects the stability of 
the Chilean financial system and its high de gree of intermediation, even at times of 
crisis (Table 1.3). 
Table 1.3 Main monetary indicators, 2008-2014 
 2008  2009  2010  2011  2012 2013 2014  
Monetary aggregates (end of period, Ch$ billion)  
Monetary base 4,288  4,735  5,595  6,720  7,660 8,297 8,715  
Banknotes and coins in circulation 2,485  2,755  3,209  3,647  4,199 4,693 5,371  
M1 10,808  13,279  16,105  18,009  19,598 22,112 25,562  
M2 54,598  51,716  56,511  66,944  72,016 82,733 90,709  
M3 88,251  87,006  96,709  114,998  122,172 139,144 155,011  
Interest rates (annual average)  
Commercial credits, 30-89 days 12.4 6.7 4.5 8.4 9.2 8.6 7.4 
Commercial deposits, 30-89 days 7.2  2.0 1.8 5.2 5.6 5.1 3.7  
Interest rate spread between credits 
and deposits, 30-89 days 4.8 4.7 2.7 3.2 3.6 3.5 3.7 
Monetary policy rate 7.1  2.0 1.4 4.7 5.0 4.9 3.8  
Inflation        
General consumer price index IPC 
(Dec.-Dec.) 7.1 -1.4 3.0 4.4 1.5 3.0 4.6  
Core consumer price index IPC X 
(Dec.-Dec.) 8.6 -1.8 2.5 3.3 1.3 2.4 5.1 
Exchange rate (p eriod average)  
Exchange rate (Ch$/US$) 521.8  559.7  510.4  483.4  486.8 495.0 570.4  
Multilateral nominal exchange rate 108.3  110.9  102.1  99.8 97.6 97.3 107.9  
Real exchange rate (1986=100) 96.2 95.7 91.4 92.1 89.8 90.0 98.2 
Variation in the real exchange rate 2.5  -0.5 -4.6 0.8 -2.5 0.2 9.1  
Note: The multilateral exchange rate measures the nominal va lue of the peso with respect to a broad basket of foreign 
currencies. The real exchange rate is defined as the pr oduct between the observed nominal exchange rate and an 
index of external prices relevant for Chile (IPE), deflated by the Chilean consumer price index (IPC). 
Source: Central Bank of Chile. 
1.40.  Following a substantial rise in inflation in 2008, resulting from the increase in oil prices and 
those of other raw materials, and a fall in the IPC in 2009 as a result of the weakening of domestic 
demand caused by the global financial crisis, the central bank managed to keep inflation rates 
under control between 2010 and 2014, with year-on-year rates ranging from 1.5% in 2012 
to 4.6% in 2014. As the central bank's targeting rule  is to keep inflation within a range of 3% plus 
or minus one percentage point over a two-year ho rizon, the variation of the IPC has been held 
within the parameters of the rule for most of the period under review. The authorities also consider 
                                               
28 Central Bank of Chile, Statistics Da tabase, Interest Rates. Viewed at: 
http://si3.bcentral.cl/Siete/secure/cuadros/arboles.aspx . WT/TPR/S/315 • Chile 
 
- 22 - 
 
  that the credibility of the central bank's inflation target is an important asset which has helped to 
maintain the inflation expectations of economic agents anchored, which over the two-year horizon have remained at 3% for mo st of the period analysed. 
1.41.  Chile maintains a floating exchange rate syst em. The BCCh may intervene in the exchange 
market in situations involving high volatility and uncertainty, but such interventions must be 
consistent with the inflation target, and the time-frames and amounts involved must also be explicitly defined. The interventions must also be announced in advance and sterilized to preserve 
the independence of monetary policy. In practice, this seldom happens; the most recent 
BCCh intervention on the foreign exchange market was in January 2011. 
1.42.  The nominal exchange rate appreciated substa ntially between 2009 and 2012, resulting in 
an appreciation of the real exchange rate of ar ound 6% on average (Table 1.3). In 2014, the trend 
reversed, and the nominal exchange rate deprecia ted by 11% in multilateral nominal terms and 
by 9% in real terms. 
1.4  Balance of payments 
1.43.  The current account of Chile's balance of payments is characterized by a traditionally surplus 
merchandise trade balance and a traditionally negative balance of services and investments. The overall balance depends largely on the size of the trade balance, which in turn, is highly 
influenced by fluctuations in the copper price. The initial effects of the global economic crisis were 
expressed in Chile through a deficit on the curre nt account of the balance of payments in 2008, 
when exports fell but imports continued to grow . This changed in 2009, when, as result of the 
crisis, domestic demand fell and merchandise imports plummeted by almost 30%, to post a 
surplus on the current account equivalent to 2% of GDP. The surplus recorded in 2010 resulted 
from exports growing faster than imports, the latter fuelled by the fiscal stimulus measures 
implemented to cope with the crisis, and the fo rmer by stronger demand and a higher price 
of copper. 
1.44.  In 2011 and 2012, with merchandise imports growing, the trade balance deteriorated and 
the current account moved back into deficit. Although starting from a depressed level, 
merchandise imports almost doubled in just three years, between 2009 and 2012. The rapid 
growth in imports reflected the high rate of GDP growth and the real appreciation of the peso (Table 1.4). 
1.45.  In 2013, and there was a slight fall in both exports and imports, and the current-account 
balance deteriorated latterly. In 2014, Chile's trade surplus widened, mainly as a result of a 
reduction in imports. The deficit in services trade fluctuated between US$1,897 million in 2010 and US$3,757 million in 2014. The current-account deficit declined from 3.7% of GDP in 2013 to the 
equivalent of 1.7% of GDP in 2014. 
1.46.  As Chile is a major recipient of foreign direct investment (FDI), particularly in the mining 
sector, profit repatriation has left an income balance that is deeply in deficit. Remittances of profits 
outweighed net FDI flows in 2009, 2010 and 2013, but the latter greatly exceeded the former 
in 2011 and 2012, owing to major inflows in the "una ssigned" category in those years (see below). 
Net cumulative FDI inflows between 2009 and 2014 amounted to roughly US$138,538 million, attaining a maximum level of US$28,457 million in 2012. Chile is also a large investor abroad, with 
flows of US$79,742 million in the period. WT/TPR/S/315 • Chile 
 
- 23 - 
 
  Table 1.4 Balance of payments, 2009-2014 
(US$ million) 
Description 2009  2010  2011  2012 2013 2014  
I. Current account 3,518  3,769  -3,088  -9,624 -10,125 -2,995  
Goods and services 13,350  14,045  7,967  -411 -1,582 4,010  
Balance of merchandise trade 15,360  15,941  11,040  2,333 1,820 7,767  
Exports of goods 55,463  71,109  81,438  77,791 76,477 75,675  
Imports of goods 40,103  55,167  70,398  75,458 74,657 67,908  
Balance of trade in services  -2,010  -1,897  -3,073  -2,744 -3,402 -3,757  
Exports of services 8,493  11,149  13,105  12,387 12,452 10,967  
Exports of transport services 4,720  6,394  7,450  6,318 6,087 4,824  
Exports of travel services  1,604  1,645  1,889  2,150 2,181 2,252  
Other service exports 2,169  3,109  3,766  3,918 4,185 3,891  
Imports of services 10,503  13,046  16,178  15,131 15,855 14,724  
Imports of transport services 4,778  6,571  8,206  7,334 7,107 6,239  
Imports of travel services  1,167  1,383  1,624  1,833 1,867 2,136  
Other service imports 4,558  5,091  6,348  5,965 6,881 6,349  
Income (primary income)  -11,395  -14,686  -13,920  -11,274 -10,730 -8,857  
Income from investment -11,393  -14,684  -13,921  -11,219 -10,559 -8,714  
Income from direct investment -11,846  -14,860  -13,771  -11,902 -11,002 -8,866  
Income from direct investment abroad 2,955  4,202  4,422  4,251 4,217 4,652  
Income from direct investment in Chile 14,801  19,062  18,193  16,153 15,219 13,518  
Income from portfolio investment 661 909 350 1,098 709 507 
Dividends from portfolio investment 785  1,347  1,109  1,900 1,617 1,625  
Interest from portfolio investment -124 -439 -759 -802 -909 -1,118  
Income from other investment -209  -733 -501 -415 -266 -355  
Inflows 633 413 475 706 764 656 
Outflows 841  1,145  975 1,121 1,029 1,012  
Current transfers (secondary income) 1,563  4,410  2,865  2,060 2,187 1,851  
Government transfers 1,213  2,762  2,565  1,995 2,198 1,992  
Transfers of other sectors 350 1,648  300 65 -10 -140 
II. Capital account 15 6,240  12 12 11 10  
III. Financing capacity/needa 3,533  10,010  -3,076  -9,613 -10,114 -2,985  
IV. Financial account 4,178  8,967  -3,638  -9,321 -11,252 -2,726  
A. Direct investment -6,159  -6,049  -3,057  -7,902 -8,956 -9,950  
Assets 7,233  9,461  20,252  20,555 10,308 12,052  
Capital shares 4,700  3,975  6,838  9,401 10,192 6,617  
Reinvested profits 2,706  3,597  4,063  3,322 2,960 3,620  
Debt instruments -174 1,888  9,351  7,833 -2,844 1,815  
Liabilities 13,392  15,510  23,309  28,457 19,264 22,002  
Equity shares 1,905  4,662  10,921  8,532 4,679 10,347  
Reinvested profits 10,519  7,863  9,226  9,085 6,256 4,406  
Debt instruments 967 2,985  3,162  10,841 8,329 7,248  
B. Portfolio investment 12,399  6,421  -11,484  3,971 -5,014 -3,692  
Assets 14,269  15,710  -798 15,043 10,545 8,688  
Liabilities 1,870  9,289  10,685  11,072 15,559 12,380  
C. Financial derivatives 1,049  934 2,418  -10 778 1,607  
D. Other investment -4,758  4,637  -5,705  -5,013 1,628 8,252  
Assets 612 6,384  -662 -2,334 -821 4,379  
Commercial credits 1,366  2,416  1,175  -308 -812 125  
Loans 290 593 263 63 53 131 
Currency and deposits -1,045  -111 -416 -846 477 4,123  
Other assets 0 3,487  -1,684  -1,242 -539 0 
Liabilities 5,370  1,746  5,043  2,679 -2,449 -3,873  
Commercial credits -1,848  1,701  1,583  -316 -639 -1,512  
Loans 5,912  -273 3,566  2,364 -1,727 -2,261  
Currency and deposits 230 320 -118 618 -65 -104 
Other liabilities -8  -2 12 14 -19 5  
SDR allocations 1,084  0 0 0 0 0 
E. Reserve assets 1,648  3,024  14,190  -367 311 1,057  
V. Errors and omissions 646 -1,043  -562 291 -1,138 259 
Memorandum item       
Overall balance of payments  1,648  3,024  14,190  -367 311 1,057  
Current account deficit as a % of GDP 2.0  1.7 -1.2 -3.6 -3.7 -1.7  
a Corresponds to the sum of the current account and capital account. 
Source: Central Bank of Chile. WT/TPR/S/315 • Chile 
 
- 24 - 
 
  1.47.  In September 2014, the external public debt stood at US$4,998 million, equivalent to 
roughly 2.1% of GDP. 
1.5  Merchandise trade and investment flows 
1.5.1  Composition of trade 
1.48.  Merchandise imports grew much faster than exports in the period 2009-2014 
(by 69% compared to 38.2%). 
1.49.  Chile's merchandise exports mainly consist of commodities, mostly agricultural products and 
processed minerals. Despite the higher copper prices , the share of mining products in total exports 
dropped slightly during the period 2009-2014 — 56.4% of Chile's merchandise exports in 2014 compared to 59.8% in 2009 (Table A1.1 and Chart 1.1). Copper ore and refined copper jointly accounted for 50.1% of the country's exports in 2014, compared to 53% in 2009. The share 
of agricultural products in total exports grew slightly during the period under review, 
from 25.9% in 2009 to 28.8% in 2014. Agricultural exports consist mainly of wine, fruit, salmon and other fish, along with agricultural raw materials, particularly forestry products. 
1.50.  The share of manufactures in total imports grew slightly during the period reviewed, 
from 67% in 2009 to 67.9% in 2014. Among these, the leading category continues to be transport machinery and equipment, which acco unted for 34.2% of imports in 2014, compared 
to 35.4% in 2009. The share of fuels in total imports, in contrast, declined from 23.2% in 2009 
to 21.2% in 2014. The share of chemical produc ts in total imports remained broadly stable, 
whereas the share of food products grew (Table A1.2 and Chart 1.1). WT/TPR/S/315 • Chile 
 
- 25 - 
 
  Chart 1.1 Merchandise trade by product, 2009 and 2014 
2009 2014
(a)    Exports
Total: US$55,459 million
(b)    Imports
Manufactures
67.0%
Total: US$42,805 million Total: US$72,344 millionTotal: US$76,639 millionNonferrous 
metals
35.9%Other 
agricultural 
products
5.9%Other 
manufactures
5.4%Other
1.6%
Agricultural 
products
25.9%
Chemicals
11.0%Other mining
1.7%Fuels
23.2%Food 
products
7.3%
Agricultural 
products
9.1%
Manufactures
67.9%Mining
23.0%Agricultural 
products
8.0%Mining
25.0%Food products
20.0%
Manufactures
12.7%Manufactures
13.4%Chemicals
3.8%
Other mining
1.3%Other semi-
manufactures
3.4% Food products
22.1%
Other 
agricultural 
products
6.1%Chemicals
4.4%Other semi-
manufactures
3.4%Other 
manufactures
5.6%Other
1.4%
Agricultural 
products
28.8%
Other 
agricultural 
products
0.7%
Other semi-
manufactures
7.3%Transport 
machinery and 
equipment
35.4%Other 
manufactures
13.3%Food 
products
8.5%Other 
agricultural 
products
0.7%
Fuels
21.2%
Other 
mining
1.8%
Chemicals
10.9%
Other semi-
manufactures
7.1%Transport 
machinery and 
equipment
34.2%Other 
manufactures
15.7%Mining
59.8%Mining56.4%
Metallic minerals
22.5%
Metallic minerals
26.9%Nonferrous 
metals
28.6%Other mining
0.8%
 
Source: United Nations Statistics Division, Comtrade database. 
1.5.2  Direction of trade 
1.51.  In 2014, China provided Chile's main export  market, absorbing 24.6% of its exports, 
compared to 23.5% in 2009. In contrast, the European Union's share of Chile's total exports shrank to 14.5% from 17.7% in 2009 (Table A1.3 and Chart 1.2). The proportion of exports sent 
to the United States grew from 11.2% in 2009 to 12.2% to 2014, and the share absorbed by WT/TPR/S/315 • Chile 
 
- 26 - 
 
  Japan rose from 9.2% to 10%. The proportion of exports going to other countries of the American 
continent declined slightly during the review period, from 21% in 2009 to 19% in 2014. 
1.52.  During the period under review, China overtook  the United States as Chile's main import 
source. China was Chile's largest provider in 2014,  accounting for 20.9% of the total, followed by 
the United States with 19.8%, and then the Europe an Union, Brazil and Argentina (Table A1.4 and 
Chart 1.2). The proportion of imports sourced from Argentina contracted by nearly seven percentage points during the period, mainly ow ing to the suppression of trade in natural gas 
between the two countries. WT/TPR/S/315 • Chile 
 
- 27 - 
 
  Chart 1.2 Merchandise trade by trading partner, 2009 and 2014 
 
2009 2014
(a)    Exports
Total: US$55,459 million
(b)    Im ports
Total: US$42,805 million Total: US$72,344 millionTotal: US$76,639 millionBrazil
5.1%Other
2.1% United States
11.2%
EU (28)
14.5%Other 
America
13.4%
EU (28)
17.7%
Mexico
2.9%China
23.5%Other Asia
14.2%
Americas
31.2%United 
States
12.2%
Other 
America
11.2%
China
24.6%Other 
Europe
1.6%Other Asia
15.4%Other
2.7%
Asia
50.0%Americas
32.2%Asia
46.9%
United 
States
18.7%
Other 
America
11.2%EU(28)
16.0%Other Europe
0.8%Japan
3.7%
China
14.5%Other Asia
9.5%Other
5,2%
United 
States
19.8%
Mexico
3.4%
Other 
America
12.5%EU (28)
14.4%Other Europe
0.9%China
20.9%Other Asia
8.2%Other
4.9%
Americas
50.4%Americas
47.5%
Europe
16.8% Europe
15.3%Asia
27.6% Asia
32.3%Japan
3.3%Europe
18.9%Europe
16.1%
Other 
Europe
1.2%Brazil
5.4%
Brazil
6.7%Brazil
7.8%Peru
2.5%
Japan
9.2%Peru
2.4%
Japan
10.0%
Argentina
10.9%Argentina
4.0%
 
 
Source: United Nations Statistics Division, Comtrade database. 
1.5.3  Trade in services 
1.53.  During the period under review, the deficit that Chile traditionally runs in its services trade 
widened from US$2,010 million in 2009 to US$3,757 million in 2014 (Table 1.5). The gap remains 
particularly high in the "Other services" category, which includes professional, financial and 
insurance services. WT/TPR/S/315 • Chile 
 
- 28 - 
 
  Table 1.5 Trade in services, 2009-2014  
(US$ million) 
 2009  2010  2011  2012 2013 2014  
Exports       
Transport 4,720  6,394  7,450  6,318 6,087 4,824  
Travel 1,604  1,645  1,889  2,150 2,181 2,252  
Other services 2,169  3,109  3,766  3,918 4,185 3,891  
Total 8,493  11,149  13,105  12,387 127,452 10,967  
Imports       
Transport 4,778  6,571  8,206  7,334 7,107 6,239  
Travel 1,167  1,383  1,624  1,833 1,867 2,136  
Other services 4,558  5,091  6,348  5,965 6,881 6,349  
Total 10,503  13,029  16,158  14,732 15,694 14,724  
Source: Central Bank of Chile. 
1.5.4  Foreign direct investment 
1.54.   Chile continued to receive large FDI flow s during the review period. According to 
information provided by the authorities, between 2009 and 2013 inflows amounted to 
US$100,856 million, nearly six times the amounts received in 2003-2008 (US$17,455 million). 
Of the FDI received by Chile in the period, 44.9% was absorbed by the mining sector, 13.4% by the financial services sector, 10.2% by the electricity, gas and water sector, and 4.5% by manufacturing industry (Table 1.6). Chile was also  a dynamic investor abroad during the period 
under review, with outward FDI on the order of US$70,199 million between 2009 and 2013. 
Chilean investment abroad is channelled into various sectors, chiefly those in the "unassigned" category (45.5% of the total), which is an ad justment category that includes the difference 
between the total of flows/volumes on the aggregate financial account and the information 
distributed by sector/country. Other important target areas for investment abroad were commerce (11.5% of the total), manufacturing indu stry (10.9%), financial services (10.5%), the 
electricity, gas and water sector (5.4%), and mining (5%). 
Table 1.6 Direct investment flows by sector, 2009-2013 
(US$ million) 
Sector 2009  2010  2011  2012 2013 Total flows  
Outward direct investment        
Agriculture and fishing 16 39 14 7 63 139 
Mining 140  1,771  1,004  375 245 3,535  
Manufacturing industry 1,052  1,292  1,363  2,329 1,613 7,649  
Electricity gas and wate r 688  617 540 -340 2,280 3,785  
Construction 61 -21 -43 83 56 136 
Commerce 276  421 1,273  4,167 1,922 8,059  
Hotels and restaurants 2 67 -49 0 0 20 
Transport and storage -9  202 -86 3,190 1,533 4,830  
Communications -2 13 0 3 434 448 
Financial services 2,012  3,576  -86 365 1,504 7,371  
Real estate and business services 739 372 714 259 -797 1,287  
Other services 56  78 644 47 172 997  
Unassigned 2,200  1,035  14,965  11,846 1,897 31,943  
Total 7,233  9,461  20,252  22,330 10,923 70,199  
Inward direct investment       
Agriculture and fishing 68  179 -4 -111 22 154  
Mining 7,057  5,017  17,917  12,963 2,295 45,249  
Manufacturing industry 421  595 942 2,095 671 4,724  
Electricity gas and wate r 2,337  681 424 2,013 4,852 10,307  
Construction 118  126 157 476 125 1,002  
Commerce 579 256 131 231 34 1,231  
Hotels and restaurants 5  10 9 31 25 80  
Transport and storage 803 17 117 -51 -118 768 
Communications -1,341  1,828  -548 1,839 877 2,655  
Financial services 1,236  2,702  2,771  3,602 3,236 13,547  
Real estate and business services 208  1,318  473 -6 -156 1,837  
Other services -13 -11 717 357 1,214 2,264  
Unassigned 1,409  3,008  339 5,104 7,181 17,041  
Total 12,887  15,725  23,444  28,542 20,258 100,856  
Source: Central Bank of Chile. WT/TPR/S/315 • Chile 
 
- 29 - 
 
  1.55.  In terms of FDI volumes, inward investment into Chile amounted to US$215,452 million in 
late 2014 — concentrated mainly in the mining sector (32.4% of the total) financial services (11.6%) the electricity, gas and water sector (7%), manufacturing industry (4.4%), and telecommunications (3.3%) (Table 1.7). The volume of Chilean FDI abroad totalled 
US$101,933 million in late 2013. Of this, 54% was targeted on sectors in the "unassigned" 
category, 9% on manufacturing industry, 8.9% on financial services, 8.8% on commerce, 6% on transport and storage, 4.6% on mining, and 4.5% on the electricity, gas and water sector. 
Table 1.7 Volume of direct invest ment by economic sector, 2009-2013 
(US$ million) 
Sector 2009  2010  2011  2012 2013  
Outward direct investment       
Agriculture and fishing 53 76 71 59 119 
Mining 1,373  2,780  3,988  4,251 4,729  
Manufacturing industry 4,465  5,721  6,515  8,289 9,205  
Electricity gas and wate r 2,940  3,132  3,055  2,730 4,574  
Construction 167 134 99 180 199 
Commerce 3,348  3,421  4,701  7,839 8,981  
Hotels and restaurants 6 71 0 0 0 
Transport and storage 1,153  1,202  1,093  4,187 6,107  
Communications 14 27 27 29 455 
Financial services 7,320  10,257  9,350  8,637 9,129  
Real estate and business services 2,958  3,423  3,990  4,052 2,525  
Other services 174  237 857 684 744  
Unassigned 27,457  29,905  44,437  57,348 55,166  
Total 51,426  60,386  78,181  98,286 101,933  
Inward direct investment      
Agriculture and fishing 815  1,017  1,018  880 906  
Mining 27,162  35,037  53,380  67,722 69,879  
Manufacturing industry 4,448  5,274  6,875  8,643 9,504  
Electricity gas and wate r 10,288  10,651  10,286  11,600 14,975  
Construction 301  428 605 953 1,199  
Commerce 1,957  2,295  2,609  2,833 2,947  
Hotels and restaurants 80  99 100 139 164  
Transport and storage 2,501  2,350  2,581  2,373 2,120  
Communications 3,138  5,422  4,228  6,176 7,017  
Financial services 12,835  16,198  20,794  22,137 24,956  
Real estate and business services 1,927  3,304  4,358  4,435 4,550  
Other services 295 281 986 1,365 2,581  
Unassigned 62,195  78,257  64,881  76,764 74,653  
Total 127,940  160,612  172,699  206,021 215,452  
Source: Central Bank of Chile. 
1.56.  The main sources of capital investment flows into Chile between 2009 and 2013 were 
European countries (36.1% of total), the United States (16.7%) and Brazil (2.7%) (Table 1.8). 
The main destinations for Chilean FDI abroad were European countries (25% of the total), 
Brazil (15.3%), Peru (10.5%) and Colombia (8.5%). 
Table 1.8 Direct investment flows by country, 2009-2013 
(US$ million) 
 2009  2010  2011  2012 2013 Total  
Outward direct investment        
America 5,852  7,691  3,626  15,281 10,021 42,471  
Of which       
Brazil 1,389  819 1,353  4,184 3,029 10,774  
Colombia 11  255 473 3,134 2,105 5,978  
United States 1,432  -1,256  435 765 1,004 2,380  
Peru 745  1,145  732 2,444 2,279 7,345  
Europe 24 4,607  11,840  3,602 -2,504 17,569  
Africa 0  -1 70 97 99 265  
Asia 286 1,470  -221 -430 -835 270 
Other 1,070  -4,306  4,937  3,780 4,142 9,623  
Total 7,233  9,461  20,252  22,330 10,923 70,199  WT/TPR/S/315 • Chile 
 
- 30 - 
 
   2009  2010  2011  2012 2013 Total  
Inward direct investment   
America 4,949  5,694  12,683  6,463 6,457 36,246  
Of which       
Brazil 202 969 150 931 499 2,751  
Colombia 9  293 771 794 -175 1,692  
United States 308 2,716  3,961  6,471 3,422 16,878  
Peru 16  401 64 -455 124 150  
Europe 4,210  5,031  9,414  12,377 5,362 36,394  
Africa 0  152 -144 5 -11 2  
Asia 1,501  156 724 946 1,025 4,352  
Other 2,228  4,691  767 8,751 7,425 23,862  
Total 12,887  15,725  23,444  28,542 20,258 100,856  
Source: Central Bank of Chile. 
1.57.  In terms of inward FDI volumes at 31 December 2013, the main source countries were 
the United States (13.1% of the total), followed by the Netherlands (9.2%), Spain (8.2%) and Canada (5.4%). Other significant investors were Bermuda, the Cayman Islands, the 
United Kingdom and Brazil. In terms of the volume of Chilean FDI abroad, the leading destination 
country was Brazil (12.5% of total), followed by Peru (9.7%), Argentina (6.8%), 
the United Kingdom (6.3%), Colombia (5.9%) and Spain (4.7%) (Table 1.9). 
Table 1.9 Direct investment volumes by country, 2009-2013 
(US$ million) 
 2009  2010  2011  2012 2013  
Outward direct investment       
America 24,241  29,528  30,925  43,372 50,972  
Brazil 4,479  5,440  6,573  10,020 12,769  
Peru 3,423  3,849  4,838  7,084 9,887  
Argentina 3,997  6,694  6,679  6,714 6,974  
Colombia 544 699 1,124  4,295 5,979  
United States 3,197  1,136  1,462  2,075 2,989  
British Virgin Islands 1,609  2,198  2,297  2,172 2,916  
Panama 1,413  1,440  1,371  1,849 2,190  
Uruguay 2,013  3,003  1,526  2,938 1,723  
Cayman Islands 1,558  1,961  2,065  2,053 1,560  
Rest of America 2,008  3,107  2,990  4,172 3,985  
Europe 2,778  7,030  18,328  18,796 14,576  
United Kingdom 25 3,024  10,119  5,500 6,392  
Spain 1,150  1,284  3,813  5,073 4,814  
Netherlands  289 1,285  977 735 832 
Ireland 356  151 155 137 653  
France 206 19 288 507 566 
Belgium 0  2 2 544 546  
Rest of Europe 752 1,265  2,975  6,300 773 
Africa 1  0 70 147 230  
Asia 1,715  3,028  2,904  2,390 1,337  
United Arab Emirates 1,687  3,001  2,858  2,317 1,178  
Japan 0 0 0 0 80 
China 7  10 18 42 55  
Rest of Asia 21 17 27 30 24 
Other 22,691  20,801  25,953  33,581 34,819  
Total 51,426  60,386  78,181  98,286 101,933  
Inward direct investment      
America 32,170  41,665  56,999  64,387 72,432  
United States 8,919  12,615  17,277  24,368 28,153  
Canada 5,489  6,243  8,619  9,606 11,696  
Bermuda 5,650  6,931  8,030  9,773 9,423  
Cayman Islands 4,760  3,381  4,245  4,963 5,539  
Brazil 1,491  2,498  3,171  3,986 4,615  
Bahamas 639 1,838  2,620  2,361 2,731  
Colombia 175  464 1,320  2,053 2,081  
Argentina 1,490  1,692  2,156  1,649 1,864  
Mexico 589  891 902 949 1,191  
Rest of America 2,968  5,113  8,658  4,680 5,138  
Europe 25,365  30,268  39,469  49,376 52,439  
Netherlands  5,962  8,599  11,390  14,530 19,785  
Spain 13,942  15,541  17,341  16,468 17,640  WT/TPR/S/315 • Chile 
 
- 31 - 
 
   2009  2010  2011  2012 2013  
United Kingdom  662 1,061  3,565  4,746 5,133  
Luxembourg 94  85 1,407  6,114 2,082  
Belgium 425 293 245 1,673 1,659  
Germany 266  297 965 1,328 1,497  
Rest of Europe  4,014  4,393  4,555  4,516 4,643  
Africa 15  176 32 37 40  
Asia 3,045  3,274  4,153  4,664 5,363  
Japan 1,945  2,064  2,982  3,454 4,126  
Hong Kong, China 857 929 929 998 1,021  
China 47  49 52 55 56  
Rest of Asia 196 232 190 157 159 
Other 67,346  85,229  72,046  87,557 85,178  
Total 127,940  160,612  172,699  206,021 215,452  
Source: Central Bank of Chile. 
1.6  Outlook 
1.58.  The authorities expect the Chilean economy to recover in 2015, albeit at still moderate 
rates. The central bank is forecasting GDP growth of between 2.5% and 3.5% for this year, driven 
mainly by a recovery in domestic demand on th e order of 2.6%. Nonetheless, GDP growth will 
remain below the economy's medium-term growth rate, which the Monetary Council estimates at between 4% and 4.5%. Both exports and imports of  goods and services are expected to grow at 
moderate rates, and the current-account deficit is forecast to be 1.1% of GDP (Table 1.10). 
Investment is projected to grow by 1.9% in 2015, in contrast to the negative performance 
in 2014. Although private investment is forecast to improve somewhat, most of the recovery will be associated with the increase in public investment announced for 2015. Average inflation should 
fall to 3.4%.
29 
1.59.  The authorities base the higher growth rate forecast for 2015 on the fact that the economy 
has made a rapid and significant adjustment in 2014, as reflected in the trends of the current 
account, interest rates and the real exchange rate. External conditions are also expected to be 
kinder than in 2014, thanks partly to the momentum provided by lower oil prices. They consider that the significant monetary boost, greater fiscal stimulus and the effect of the peso depreciation 
on activity in the tradable sectors, will provide an additional support. 
1.60.  The IMF, on the other hand, is projecting a real GDP growth rate of 3.3% in 2015, and 
a 3.2% rise in the IPC.
30 
Table 1.10 Prospects for economic gr owth and the current-account balance 
 2014  2015a 
 (Annual variation,%) 
GDP 1.7 2.5-3.5  
National income  1.3 3.7 
Domestic demand  -0.7 3.0  
Domestic demand (excl. variation in inventories)  0.4 2.6  
Gross fixed capital formation -6.2 1.9  
Total consumption 2.4 2.8  
Exports of goods and services  1.4 4.0  
Imports of goods and services  -5.9 3.7  
Current account (% of GDP)  -1.6 -1.1  
Gross national saving (% of GDP)  19.7  20.8  
Gross national investment (%of GDP)  21.3 21.9  
GFCF (% of nominal GDP)  22.0  21.6  
GFCF (% of real GDP)  23.8 23.6  
                                               
29 Central Bank of Chile (2014), Monetary Policy Report , December 2014. Viewed at: 
http://www.bcentral.cl/publicaciones/politicas/pdf/ipm122014.pdf . 
30 Online information from the IMF, viewed at: http://www.imf.org/ex ternal/country/CHL . WT/TPR/S/315 • Chile 
 
- 32 - 
 
   2014  2015a 
 (US$ million) 
Current account -4,150  -2,770  
Trade balance 7,600  9,020  
Exports  75,550  75,600  
Imports  -67,950  -66,580  
Services  -3,300  -3,600  
Income -10,550  -10,230  
Current transfers 2,100  2,040  
a Projected. 
Source: Central Bank of Chile. 
 WT/TPR/S/315 • Chile 
 
- 33 - 
 
  2  TRADE AND INVESTMENT REGIMES 
2.1  Overview 
2.1.  The 1980 Political Constitution of the Republic  of Chile defines the country as a unitary and 
democratic republic, organized according to the principle of separation of powers. 
The administration of the State is geographically decentralized1, the territory of the Republic being 
divided into 15 regions, including the Metropolit an Region, which themselves are divided into 
provinces (54 in all).2 For the purposes of local administration, the provinces are divided into 
communes (346 in total).3 The objective of the Government and subnational administration is to 
pursue harmonious and equitable territorial de velopment, based on solidarity between the 
different regions.4 
2.2.  Executive power rests with the President of the Republic, who is the Head of State5 and 
responsible for appointing Ministers of State and other officials.6 The President is elected by direct 
universal suffrage for a four-year constitutional term, and may not be re-elected for the ensuing period.
7 
2.3.  Legislative power rests with the National Congress, comprising the Chamber of Deputies and 
the Senate.8 The Chamber of Deputies consists of 120 deputies directly elected for a four-year 
term. The Senate consists of 38 members directly elected for an eight-year term, who are renewed 
alternately every four years. Members of Congress may be re-elected in their posts.9 
Draft legislation to change the number of members of Congress is currently in the third stage of 
constitutional processing in the National Congress.10 
2.4.  According to the Political Constitution of the Republic of Chile and the Courts Statute Code, 
judicial power is vested in the Supreme Court of Justice, the 17 regional appeal courts distributed 
throughout national territory, court presidents and judges, criminal oral trial courts, magistrates courts and guarantee courts. In addition, the judiciary has special family courts, labour-dispute 
courts, labour and pension rights enforcement cour ts, courts martial in peace time, and municipal 
courts of first instance.
11 The Supreme Court consists of 21 judges appointed by the 
President of the Republic, from a list of five candidates proposed by the court itself and confirmed 
by a two-thirds majority of the Senate. Members of the Appeal Courts are appointed by the 
President of the Republic from a shortlist proposed by the Supreme Court.12 
2.5.  Legislative procedures in Chile distinguish between laws that interpret the Constitution, 
constitutional statute laws (LOCs), qualified quorum laws, ordinary laws, decrees having force 
of law (DFLs), and decree laws (D Ls). Laws interpreting the Constitution clarify the meaning or 
scope of a concept or an expression contained in the Constitution, and require a 
                                               
1 Article 3 of the Political Constitution of the Republic of Chile of 1980 (Official Journal ( Diário Oficial ) - 
O.J. 24.10.1980), amended by Law No. 19.097 (O.J. 12.11.1991) and Law No. 20.050 (O.J. 26.08.2005). 
2 Viewed at: http://www.subdere.cl/documentacion/regiones-provincias-y-comunas-de-chile . 
3 Viewed at: http://www.subdere.cl/documentacion/regiones-provincias-y-comunas-de-chile . 
4 Article 115 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 19.097 (O.J. 12.11.1991). 
5 Article 24 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). 
6 Article 32.7 of the Political Constitution of  the Republic of Chile of 1980 (O.J. 24.10.1980). 
7 Articles 25 and 26 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), 
amended by Law No. 19.295 (O.J. 04.03.1994), Law No. 20.050 (O.J. 26.08.2005) and Law No. 20.515 (O.J. 04.07.2011); and by Law No. 19.643 (O.J. 05.11.1999) and Law No. 20.050 (O.J. 26.08.2005), respectively. 
8 Article 46 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). 
9 Article 51 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989) and Law No. 20.050 (O.J. 26.08.2005). For the purposes of electing representatives to the National Congress, Chilean territory is divided into 19 senatorial constituencies and 60 electoral districts. Each senatorial constituency el ects two senators, and each electoral district elects 
two deputies. Viewed at: http://www.camara.cl/c amara/distritos.aspx . 
10 Bulletin 9326-07 of the Chamber of Deputies of Chile. Viewed at: 
http://www.camara.cl/pley/pley_detalle.aspx?prmID=9742 . 
11 Article 5 of the Courts Statute Code (O.J. 09.07.1943), amended by Law No. 18.969 (O.J. 
10.03.1990), Law No. 19.665 (O.J. 09.03.2000) and Law No. 20.022 (O.J. 30.05.2005). 
12 Article 78 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 19.519 (O.J. 16.09.1997) and Law No. 19.541 (O.J. 22.12.1997). WT/TPR/S/315 • Chile 
 
- 34 - 
 
  three-fifths majority of currently serving deputies and senators to be passed, amended, or 
repealed.13 LOCs address certain issues that are expressly stipulated in the Constitution14 and 
require a four-sevenths majority of currently serving deputies and senators to be passed, 
amended or repealed.15 Laws interpreting the Constitution and LOCs have to be submitted for 
constitutional review by the Constitutional Court before they are enacted.16 Qualified quorum laws 
are passed, amended and repealed by an absolute  majority of currently serving deputies and 
senators. Ordinary laws require a majority of the votes cast by members of each chamber of 
Congress present at the time of voting.17 DFLs concerning constitutional matters are issued by 
the President of the Republic by de legation of congressional authority.18 Decree laws are legislative 
texts on matters pertaining to a specific law that were adopted by the Government in situations of constitutional irregularity, without any involvement of the Legislature.
19 The Constitution takes 
precedence over all other laws. 
2.6.  Draft laws can be introduced by the President of the Republic (in the form of "Messages") 
or at the initiative of a group of members of Congress ("Motions"). The Constitution gives the 
President of the Republic the exclusive right to pr opose draft laws on issues concerning changes to 
the political or administrative division of the country, or the State's financial or budgetary management.
20 In this case, members of Congress cannot table any motion or formulate any 
suggestion. On all other matters, both the President and members of Congress can put forward 
draft laws, although in certain cases the legislative procedure must originate in one of the two chambers of the National Congress.
21 Following that, the draft law is scrutinized by the 
originating chamber, which, in the event of approv ing it, sends it for revision by the other chamber 
("revising chamber"), and the latter may either approve or reject it, or introduce amendments. 
When the revising chamber rejects a draft law approved by the originating chamber, or the 
originating chamber rejects the amendments introduced by the revising chamber, a joint 
committee is set up to formulate a proposal which is put to the vote separately in both chambers. 
Should the revising chamber approve the draft law, or if the originating chamber approves 
the amendments introduced by the revising cham ber, or both chambers approve the proposal 
of the joint committee, the draft law is considered approved by the National Congress. It is then 
sent to the President of the Republic who, if he or she approves its content, enacts the text as a law within 10 days.
22 
2.7.  The President of the Republic has the power to conclude, sign and ratify the international 
treaties he/she deems advantageous for the interests of the country, which must then be 
submitted for congressional approval.23 The President must inform Congress of the content and 
scope of the treaty in question, as well as any reserves it is intended to confirm or attach to it.24 
In addition, the President has the exclusive power to  cancel a treaty or withdraw from it, for which 
he/she must consult both chambers of Congress. The measures that the President of the Republic 
adopts, or the agreements he/she signs, to fulfil a current treaty, does not require new 
approval by Congress, unless specifically legal matters are involved.25 Congressional approval 
                                               
13 Article 66 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989). 
14 See, for example, Articles 8 (paragraph 3), 18, 19 (paragraphs 11, 15 and 24), 38 or 44 of the 
Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). 
15 Article 66 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989). 
16 Article 93 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 20.050 (O.J. 26.08.2005). 
17 Article 66 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989). 
18 Article 64 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 20.050 (O.J. 26.08.2005). 
19 Viewed at: http://www.bcn.cl/ayuda_folder/glosario#D . 
20 Article 65 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). 
21 For example, all draft laws on taxation must be presented in the Chamber of Deputies, whereas draft 
laws on amnesties and general pardons must be initiated in  the Senate (Article 65.2 of the Political Constitution 
of the Republic of Chile of 1980). 
22 Viewed at: http://www.minsegpres.gob.cl/wp-content/uploads/2013/01/como_se_hace_una_ley.pdf . 
23 Article 32 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). 
24 Article 54 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989) and Law No. 20.050 (O.J. 26.08.2005). 
25 Article 63 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). WT/TPR/S/315 • Chile 
 
- 35 - 
 
  is not required for treaties signed by the Pr esident of the Republic in the exercise of 
his/her regulatory power.26 
2.8.  The National Congress is required to approve or reject the international treaties presented to 
it by the President of the Republic, before their ratification. Approval of the treaty requires the 
corresponding quorum in each chamber of Congress,  and will be subject to the same procedures 
as the law. Congress may suggest formulating reserves and interpretive statements to an international treaty during the approval process, provided that this is done in accordance with 
the provisions of the treaty itself or under the general rules of international law.
27 
2.2  Trade policy formulation and objective 
2.9.  Foreign trade policy is formulated by the Government. The Directorate-General 
of International Economic Relations (DIRECON), in the Ministry of Foreign Affairs, remains the lead 
agency responsible for executing and coordinating government policy on international economic 
relations. Among other things, it promotes and negotiates international treaties on economic issues; participates in international organizati ons and coordinates Chile's position in these 
organizations.
28 In addition, DIRECON holds regular consultations with the National Congress on 
trade policy issues. 
2.10.  Trade policy formulation also involves the interministerial Committee on International 
Economic Negotiations, which was created in 1995 for the purpose of advising and proposing 
specific policies on international economic negotiations to the President of the Republic. The committee is formed by the Minister of Foreign Affairs (in the chair), the Minister of Finance, the Minister General Secretary of the Office of the President, and the Minister of the Economy, 
Development and Tourism.
29 
2.11.  The decree creating the interministerial committee also established two other supporting 
bodies: the Negotiators Committee and the Private Sector Participation Committee. The key 
function of the former is to monitor negotiating processes, for which it maintains permanent 
contact with the lead negotiators in each case. It also is responsible for preparing the agenda of topics to be reviewed by the interministerial committee, which consists of the Director-General 
of International Economic Relations of the Ministry of Foreign Affairs (in the chair), 
a representative of the Finance Minister, a represen tative of the Minister General Secretary of the 
Office of the President, a representative of the Ministry of the Economy, Development and Tourism, the Media Director of the Ministerial General Secretariat of the Government, and the 
coordinators of each negotiating team.
30 The Private Sector Participation Committee is 
a permanent advisory agency whose main function is to keep the private sector informed of the 
progress of international economic negotiations and to obtain private-sector opinions on 
the subject. It consists of the Minister of th e Economy, Development and Tourism (in the chair), 
the Minister of Foreign Affairs, the Minister  of Finance, the Minister of Agriculture, 
the Minister General Secretary of the Office of th e President, the Director-General of International 
Economic Relations of the Ministry of Foreign A ffairs, two representatives of the business sector, 
two worker representatives, and three experts on  international economic negotiations appointed 
by the President of the Republic.31 According to the Chilean authorities, this Private Sector 
Participation Committee is not currently operating. 
2.12.  In addition, the DIRECON Civil Society Council was created in 2011, as a citizen participation 
mechanism of a consultative nature, whose main objective is to advise DIRECON on trade negotiations, the implementation of free trad e agreements, export promotion services and 
programmes, and Chile's participation in multilateral economic organizations. This council consists 
of representatives of non-profit civil society organizations and individuals appointed by the 
                                               
26 Article 54 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989) and Law No. 20.050 (26.08.2005). For the special powers of the President of the Republic, see Article 32 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980). 
27 Article 54 of the Political Constitution of the Republic of Chile of 1980 (O.J. 24.10.1980), amended by 
Law No. 18.825 (O.J. 17.08.1989) and Law No. 20.050 (O.J. 26.08.2005). 
28 Decree having Force of Law (DFL) No. 53 of th e Ministry of Foreign Affairs (O.J. 27.04.1979). 
29 Decree No. 419 of the Ministry of Foreign Affairs of 7 April 1995 (O.J. 10.05.1995). 
30 Ibid., Article 10. 
31 Ibid., Article 11. WT/TPR/S/315 • Chile 
 
- 36 - 
 
  DIRECON Director-General. The President of the Council is elected by majority of the 
representatives of the participating organizations.32 
2.13.  The Chilean Government is collaborating very closely with the private sector to boost 
exports, particularly of manufactured products. In  2014, PROCHILE, the Foreign Ministry institution 
responsible for export and investment promotion and tourism development, along with the 
Industrial Development Corporation (SOFOFA) created the National Export Development Council, as a public-private partnership aimed at increasing Chilean exports, particularly from small and 
medium-sized enterprises (SMEs). In December 2014, the Public-Private Export Competitiveness 
Council was set up, chaired by the Minister of the Economy, Development and Tourism, with the 
aim of generating new investment opportunities in  the current low-growth scenario. The objective 
of this council is to provide a mechanism of permanent collaboration between trade associations 
and public agencies involved with export-related matters. In particular, the goal is to boost the 
growth of SMEs, which account for just 2% of total exports, and achieve development based on exports of value-added products, thus promoting diversity and productivity.
33 
2.14.   Other initiatives to expand the export sector are the Services Trade Competitiveness 
Council, created by the Ministry of Finance, DIRE CON and SOFOFA to exploit the potential offered 
by the services sector and detect measures that  generate uncertainty among exporters; and the 
Agrifood Export Council, created by SOFOFA and th e Ministry of Agriculture to promote the image 
of Chile as a food-exporting country.34 
2.15.  Chile views foreign trade as a decisive tool for achieving its economic and social 
development objectives and is making tremendous efforts at both bilateral and multilateral levels 
to advance towards those goals. Chile's trade policy primarily focuses on internationalizing the 
country's economy, strengthening trade promotio n and fostering national economic and social 
development. Chile accordingly considers that conditions conducive to free international trade and 
the easing of all trade barriers are vitally important if its exports are to gain access to the world's 
leading markets under equal terms. The country's trade policy is founded on four pillars: the negotiation, implementation, and administrati on of trade agreements; the development and 
promotion of exports of goods and services; the promotion of investment; and participation 
in international economic organizations. 
2.16.  Chile also attaches importance to regional integration, as one of the key elements of its 
foreign policy. It has made major efforts to support the development of regional infrastructure, 
strengthen connectivity, build value chains, promote energy integration, coordinate social policies, 
reduce poverty, and promote political dialogue and free trade.
35 
2.3  International trade relations 
2.3.1  World Trade Organization 
2.17.  Chile is a founding member of the World Trade Organization (WTO), and it incorporated 
the Marrakesh Agreements into national legislatio n under Decree No. 16 of the Ministry of Foreign 
Affairs, on 5 January 1995. It took part in th e negotiations on telecommunications and financial 
services after the Uruguay Round. The Fourth and Fifth Protocols to the General Agreement on Trade in Services (GATS) entered into force for Chile on 16 June 1998. Chile is not a signatory to the WTO Information Technology Agreement or th e Plurilateral Agreements, although it has had 
observer status on the Government Procurement Committee since September 1997. It grants 
at least most-favoured-nation (MFN) treatment to all of its trading partners. Chile's trade policies have been reviewed four times by the WTO Trad e Policy Review Body, prior to this review. 
2.18.  Chile believes that there is a fundamental need  for a stronger multilateral trading system, 
with full legitimacy and based on clearly defined principles and rules on global trade. It also sees the WTO as the only forum capable of resolving pr oblems that bilateral or regional agreements 
                                               
32 Exempt Resolution No. J-1053 of the Directorate- General of International Economic Relations of 
20 October 2014. 
33 Information provided by the authorities (PROCHILE). 
34 Information provided by the authorities (PROCHILE). 
35 Viewed at: http://www.minrel.gob.cl/minrel/site/artic/20080802/pags/20080802193244.html . WT/TPR/S/315 • Chile 
 
- 37 - 
 
  have been unable to settle, such as the use of anti-dumping measures for protectionist purposes, 
and the abolition of agricultural subsidies. 
2.19.  Chile hopes that the negotiations subsequent to the Ninth WTO Ministerial Conference held 
in Bali (Indonesia) in December 2013 will make it possible to conclude the Doha Round as soon as 
possible, with agreements on all elements of the agenda and a special focus on development.36 
It attaches great importance to efforts to promote the Bali Package, which includes trade facilitation and a number of development- and agri culture-related elements. Chile has participated 
with special interest in the agriculture negotiations, with a view to definitively eliminating export 
subsidies for agricultural products and substantially reducing trade-distorting domestic support, tariffs and other market-access barriers. Chile beli eves that the post-Bali work programme should 
prioritize and promote agriculture-related issues.
37 As regards market access for non-agricultural 
products, Chile supports the elimination of tariff escalation. It is also working to improve trade 
standards, in particular to avoid the excessive use of anti-dumping measures, eliminate fisheries subsidies
38, and revise the dispute settlement provisions. 
2.20.  Chile played a leading role in negotiations on tr ade facilitation in the WTO. It submitted both 
individual and collective drafting proposals for the draft consolidated negotiating text on trade 
facilitation, and it contributed to the work of the Negotiating Group on Trade Facilitation, acting as 
facilitator in the final stage of the negotiation of the Agreement. Moreover, on 23 July 2014, Chile 
presented to the Preparatory Committee on Trade Facilitation its notification of category A commitments
39, which included all of the provisions of Section I of the Agreement, apart from 
those of Article 7.7 concerning authorized operators.40 Chile will apply those provisions when the 
Agreement enters into force. 
2.21.  During the review period, Chile submitted a large number of notifications under the various 
WTO Agreements, a selection of which are listed in Table A2.1. 
2.22.  Chile recognizes the importance of the WTO dispute settlement mechanism and has 
participated actively in it throughout its history. Since the previous review of its trade policy, Chile has not taken part as a complainant, but in 2009 it was involved as a respondent in a dispute 
with Argentina on anti-dumping duties. It also participated as a third party in 12 cases. 
2.3.2  Regional trade agreements 
2.23.  Outside of the WTO international standards, Chile maintains an open trade strategy based 
on trade agreements, of which it has signed fo ur types based on the degree of commitment and 
coverage pursued: partial-scope agreements, economic complementarity agreements, free trade 
agreements and strategic partnership agreements. No netheless, that classification is not always 
valid, because the coverage of the agreements, even within a given type, varies widely from one 
country or region to another. 
2.24.  Partial-scope agreements are bilateral accords aimed at eliminating tariffs on a restricted list 
of products. They tend to be the first step towards broader-scope agreements. Chile has 
one agreement of this type in force with India, which it has recently renegotiated to incorporate 
new products, better tariff preferences and specific chapters on technical barriers to trade and sanitary and phytosanitary measures. According to the authorities, this expansion of the agreement is set to be signed shortly. 
2.25.  Economic complementarity agreements are signed in the framework of the Latin American 
Integration Association (LAIA), with a view to opening goods market on a reciprocal basis. 
                                               
36 Joint Statement by the G-15 (WT/MIN(13)/23), presented at the Ninth WTO Ministerial Conference, 
held in Bali (Indonesia) from 3-6 December 2013. 
37 Cairns Group Communiqué (WT/MIN(13)/12), pres ented at the Ninth WTO Ministerial Conference, 
held in Bali (Indonesia) from 3-6 December 2013. 
38 Ministerial statement on fisheries subsidies (WT/MIN(13)/49), presented at the Ninth WTO Ministerial 
Conference, held in Bali (Indonesia) from 3-6 December 2013. 
39 Category A contains the provisions  that a developing country Member  designates for application when 
the Agreement enters into force or, in the case of a least developed country Member, within one year from 
the date of entry into force. See Article 14 of the Trade Facilitation Agreement (WT/L/940). 
40 WTO document WT/PCTF/N/CHL/1 of 23 July 2014. WT/TPR/S/315 • Chile 
 
- 38 - 
 
  They have more extensive liberalization objectives than partial-scope agreements. Chile has 
signed agreements of this type with MERCOSUR and with the Bolivarian Republic of Venezuela, 
Cuba, Ecuador, Peru and the Plurinational State of Bolivia. During the review period, Chile did not 
sign any economic complementarity agreement, nor did it amend those already in force. 
2.26.  Free trade agreements (FTAs) aim to create a free-trade zone that ensures free movement 
of goods, services and capital, by harmonizing re levant policies and standards. Chile currently has 
14 FTAs in force. Since the last review, it has signed agreements with Canada41; China42; 
Hong Kong, China43; Malaysia44; Thailand45; Turkey46; and Viet Nam.47 
2.27.  Strategic partnership agreements are the widest ranging agreements signed by Chile. 
Apart from provisions on the liberalization of goods and services markets, these agreements 
contain provisions on other topics not directly rela ted to trade, such as cooperation on scientific, 
technological and social issues, and so forth. Curr ently, Chile has three agreements of this type 
in force, with Japan48; New Zealand, Singapore and Brunei Darussalam (P-4); and the 
European Union.49 In the agreement with the EU, apart from the provisions on trade and 
cooperation on a wide range of issues, there is a "democratic clause", which allows either of 
the parties to take measures and even suspend the broadening of the agreement of the event 
of a violation of democratic principles.50 In May 2014, negotiations began for a strategic 
partnership agreement between Chile and Indonesia. 
2.28.  In addition, Chile and another 11 countries are continuing to negotiate the Transpacific 
Partnership (TPP), an ambitious project for the integration of the Asia-Pacific region. The negotiations for this agreement began in 2010, based on the previous draft agreement, 
the 2005 Trans-Pacific Strategic Economic Partnership between Chile, Brunei Darussalam, 
New Zealand and Singapore. Chile's participation in those negotiations reflects the increasing importance of the Asia-Pacific region as a trad ing partner, since the region has displayed great 
economic dynamism and a high degree of trade openness. Thus far, 23 rounds of negotiations 
have been held, and 15 of the 29 chapters envisaged have been concluded. The draft agreement is based on the "single undertaking" principle, which means that it cannot come into force until 
the negotiations on all of the other elements in the agreement have been completed. In the 
interests of transparency, Chile has opened its negotiating process to civil society through the so-called "side room"
51, a forum in which all civil-society stakeholders can participate in defining 
Chile's negotiating stance. 
2.29.  Chile is also participating actively in the negotiations for the Pacific Alliance. This is 
a regional integration project that was launched on 28 April 2011, when the Heads of State of Chile, Colombia, Mexico and Peru agreed in the Lima Declaration to move towards the 
free movement of goods, services, capital and persons; promote greater growth, development and 
competitiveness of the economies of the parties;  and become an economic integration and trade 
platform, with worldwide projection particularly to the Asia-Pacific region.
52 On 6 June 2012, 
during the Fourth Presidential Summit held in Antofagasta (Chile), the framework agreement was 
                                               
41 WTO document WT/REG38/N/1/Add.2-S/C/N/65/Add.1 of 14 January 2014. Strictly speaking, this is 
an amendment to the Agreement already in force between Chile and Canada. Amendments were made in relation to rules of origin, dispute settlement, cust oms procedures, and governme nt procurement; and a new 
chapter on financial services was in cluded, which made it necessary to amend the provisions on investment 
and cross-border trade in services. 
42 WTO document S/C/N/577 of 22 November 2010. This is a supplementary agreement on services and 
a supplementary agreement on investment, which ente red into force on 1 August 2010 and 8 February 2014, 
respectively. 
43 WTO document WT/REG356/N/1-S/C/N/773 of 17 October 2014. 
44 WTO document WT/REG330/N/1 of 13 February 2013. 
45 Agreement concluded and underg oing parliamentary approval. 
46 WTO document WT/REG293/N/1 of 25 February 2011. 
47 This agreement entered into force on 1 Februa ry 2014. As of 15 March 2015, the WTO has not yet 
been notified of the FTA between Chile and Viet Nam (WTO document WT/REG/W/91 of 23 March 2015). 
48 Chile and Japan have agreed to launch a deepenin g process to include new pr oducts within the scope 
of the Agreement. Viewed at: http://www.direcon.gob.cl . 
49 Viewed at: http://www.direcon.gob.cl/acuerdos-comerciales . 
50 Viewed at: http://www.direcon.gob.cl/detalle- de-acuerdos/?idacuerdo=6286#tabs-1 . 
51 Viewed at: http://www.direcon.gob.cl/tpp/cuarto-adjunto . 
52 Presidential statement on the Pacific Alliance, Li ma (Peru), dated 28 April 2011, and Pacific Alliance 
Framework Agreement. WT/TPR/S/315 • Chile 
 
- 39 - 
 
  signed establishing the Pacific Alliance, laying its institutional foundations and defining 
its objectives.53 On 10 February 2014, at the Eighth Summit of the Pacific Alliance held in 
Cartagena de Índias (Colombia), the Additional Protocol to the Framework Agreement was signed, 
complementing and improving the free trade agreem ents in force between the States parties to 
the Alliance. This Additional Protocol contains provisions on market access, rules of origin, 
technical barriers to trade, sanitary and phytosanitary measures, trade facilitation and customs cooperation, government procurement, cross-border trade in services and investment, 
telecommunications, e-commerce, financial services, maritime services and dispute settlement. 
2.30.  In short, Chile has signed a large number of trade agreements, making it one of the 
countries with the largest number of agreements and trading partners (Chart 2.1). This wide-ranging network of trade agreements might give cause for concern; but Chile has 
demonstrated on several occasions, both individually and as part of collective initiatives, its 
support for the Transparency Mechanism for Regional Trade Agreements
54, the Doha Development 
Agenda, and the multilateral trading system in general.55 
Chart 2.1 Network of Chile's trade agreements 
NicaraguaHondurasGuatemalaEl SalvadorCosta RicaCanada
United States
Chile
BoliviaColombia
PeruMexico
PanamaCuba
ALADI
MERCOSUR
ArgentinaBrazil
Paraguay
UruguayEFTAEU
Turkey
Hong Kong, China
MalaysiaJapanIndia
China
Republic of Korea
Viet Nam
Australia
Brunei Darussalam
Singapore
New ZealandP4CACMVenezuela
 
Source: Regional Trade Agreements Info rmation System (RTA-IS). Viewed at: http://rtais.wto.org ; and 
WTO document WT/REG/W/87 of 3 November 2014. 
2.31.  Table A2.2 summarizes the main features of Chile's regional trade agreements that have 
entered into force since the last Trade Policy Review of 2009 (not including economic complementarity agreements and partial-scope agreements). 
                                               
53 See Article 3 of the Pacific Alliance Framework Agreement. 
54 Further information on the Transparency Me chanism for Regional Trade Agreements at: 
http://www.wto.org/english/tratop_e/region_e/region_e.htm . On this point, on 6 November 2014, Chile and 
the European Union submitted a report on the implemen tation of their Agreement (WT/REG164/R/I), pursuant 
to paragraph 15 of the Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
55 WTO documents WT/MIN(11)/ST/5 of 15 December 2011; WT/MIN(13)/12 of 2 December 2013; 
WT/MIN(13)/49 of 18 December 2013; WT/MIN(13)/ 23 of 5 December 2013; and WT/MIN(13)/ST/98 
of 23 January 2014. WT/TPR/S/315 • Chile 
 
- 40 - 
 
  2.3.3  Other agreements and arrangements 
2.32.  Chile has been a member of the Asia-Pacific Economic Cooperation (APEC) forum since 
1994. The developed-country members of APEC undertook to liberalize trade in goods and services in the Asia-Pacific region by 2010, while developing-country members will do so at the latest 
by 2020. Chile has undertaken to liberalize its goods and services trade by 2010 in line with the 
APEC's developed-country members.
56 According to the Chilean authorities, this objective has been 
fulfilled as an outcome of the trade agreements si gned by Chile, which have resulted in an average 
preferential tariff of roughly 1%, and because Chile  maintains open services trade and investment 
regimes, with very few exceptions. 
2.33.  Chile is a beneficiary of the Generalized System of Preferences (GSP). During the review 
period, it received preferences under the schemes respectively operated by Australia, Canada, 
the Russian Federation, Belarus and Kazakhstan, Japan, New Zealand and Turkey. According to 
figures provided by the authorities, in 2013 and 20 14, Chile issued 6,281 and 5,204 certificates of 
origin, respectively, for exports of products cove red by preferences under the GSP. Although Chile 
also forms part of the Global System of Trade Preferences among Developing Countries (GSTP), 
the authorities stated that no certificates of origin have been extended for exports covered by this scheme. Chile did not participate in the third round of GSTP negotiations which concluded 
in December 2010, nor did it make any offers or assume any commitments under that round.
57 
2.34.  In May 2007, Chile was invited to join the Or ganisation for Economic Co-operation and 
Development (OECD). In December 2007, it received the roadmap initiating the accession process, which moved forward step by step and required major efforts from Chile to bring its laws and 
practices into line with OECD standards in va rious domains. In September 2008, the initial 
memorandum was received, and in November 2009 Chile sent its final statement to the OECD, 
which was signed by the Council in December that year. In January 2010, the Agreement on the 
Terms of Access of the Republic of Chile to th e Convention on the Organisation for Economic 
Co-operation and Development was signed; and Chile formally became an OECD member on 
7 May 2010, when it deposited the instrument of accession. 
2.4  Foreign investment 
2.4.1  Legal framework 
2.35.  Chile does not have a specific law governing foreign investment. Foreign investment in 
Chile is regulated by the following two legal instruments: Chapter XIV of the Central Bank's 
Compendium of Foreign Exchange Regulations and the Foreign Investment Statute (Decree Law 
No. 600 of 1974
58, hereinafter DL No. 600). To bring capital into Chile, foreign investors can 
choose either of these two instruments. Since 1974,  most of them have invested in the country 
under DL No. 600. Up to 2011, a total of US$82,021 million (56.5% of Chile's gross capital inflow) 
entered Chile through this mechanism.59 Nonetheless, in recent years DL No. 600 has lost ground 
to Chapter XIV of the Central Bank's Compendium  of Foreign Exchange Regulations, owing to 
factors such as the removal of exchange controls  by the central bank in 2001, the incorporation 
of investment disciplines in the free trade agreements, Chile's admission to the OECD in 2010, and more recently the tax reform introduced through Law No. 20.780.
60 As of September 2014, 
the volume of foreign direct investment (FDI) in Chile totalled US$223,372 million.61 
2.36.  In general, Chile grants national treatment to foreign investors and allows them to own up 
to 100% of a firm's equity in most economic sectors. Nonetheless, there are specific laws that impose restrictions on national treatment or market access in certain sectors, such as coastal 
shipping, air transport and the communications media. In the fisheries sector, the restrictions are 
                                               
56 The list of APEC members is available at: http://www.apec.org/Abou t-Us/About-APEC/Member-
Economies.aspx . 
57 Information provided by the Chilean authorities. 
58 Decree Law No. 600, amended on 16 December 1993 and 16 June 2005 by Law No. 20.026, which 
itself was amended by Law No. 20.097 of 8 April 2006. 
59 Viewed at: http://www.ciechile.gob.cl/es/dl-600/que-es-el-dl600 . 
60 Estudios Económicos Estadísticos No. 109 , Central Bank of Chile, November 2014. 
61 Central Bank of Chile: http://www.bcentral.cl/estadi sticas-economicas/series-
indicadores/index_se.htm . WT/TPR/S/315 • Chile 
 
- 41 - 
 
  subject to the principle of international reciprocity.62 In addition, foreign nationals may not acquire 
state land located within 10 km from the border and 5 km from the coast.63 
2.37.  The State plays a limited role in the economy, although certain strategic activities are 
reserved to it, such as the exploration and exploi tation of lithium, oil or gas deposits located 
in maritime zones under national jurisdiction or in areas legally classified as important for national 
security, and the production of nuclear power for peaceful purposes.64 However, both national and 
foreign firms can participate in these sectors in certain circumstances, subject to presidential 
authorization. 
2.38.  Chapter XIV of the Compendium of Foreign Ex change Regulations is an administrative 
record system that functions through the commercial banks and is managed by the central bank. The investment modalities covered by this system  are loans, deposits, investments, or capital 
contributions from abroad, for a minimum amount of US$10,000. The foreign capital entering Chile 
under Chapter XIV enjoys national treatment; but unlike under DL No. 600, the investor does not sign a contract with the State and does not benefit from the advantages provided in DL No. 600. 
Instead, the investment is subject to the regime applicable to national investment. The only 
conditions for adopting this mechanism are the obligation to report and to use the formal foreign exchange market. 
2.39.  Any foreign natural or legal person, and Chilean citizens with residence and domicile abroad, 
can invest under DL No. 600. This instrument provides for six investment modalities: convertible foreign exchange, physical assets, various forms of technology, loans associated with a foreign investment, capitalization of foreign loans and debts, and capitalization of profits.
65 
2.40.  Under DL No. 600, foreign investors wishing to invest in projects in amounts above 
US$5 million66 will need authorization from the Foreign Investment Committee, which is 
responsible for managing this investment mechanism and for examining67 and, as the case may 
be, approving each investment request. During the review period, the Committee has not rejected 
any request. This Committee consists of the Ministers of the Economy, Development and Tourism (in the chair); Finance; Foreign Affairs; Planning and Cooperation; the line minister of the activity 
sector related to the investment request, and the Governor of the Central Bank. 
2.41.  The authorities impose stricter requirements for foreign investment projects in some specific 
sectors. Examples are the banking and financial sector, the mining sector and the fisheries sector, where the governing bodies
68 have to prepare a report on the investment project in question for 
the Foreign Investment Committee. Where approp riate, the Environmental Evaluation Service 
(SEA) evaluates the environmental impact of projects requested. 
2.42.  The main advantage of the DL No. 600 mechan ism is that the authorization to invest 
consists of signing a standard contract of indefinite duration between the State of Chile and the 
foreign investor — a contract that defines rights and obligations of both parties, and that the State cannot unilaterally amend or rescind.
69 This contract has no cost for the investor and sets the 
deadline for the entry of the capital, which in th e case of mining investments cannot exceed eight 
years, and in other sectors three years. The Committee may extend the deadline for mining investments for up to 12 years if prior explorations are necessary. For investments in non-mining projects worth US$50 million or more, the deadline can be extended to eight years if the nature 
                                               
62 Viewed at: http://www.ciechile.gob.cl/es/faq . 
63 Decree Law No. 1.939 of 10 November 1977, and DFL No. 4 of the Ministry of Foreign Affairs 
of 10 November 1967. 
64 Viewed at: http://www.ciechile.gob.cl/es/faq . 
65 Article 2 of DL No. 600. 
66 In the case of physical goods, technology and the capitalization of profits or credits, the minimum 
amount is US$2.5 million. 
67 According to the Chilean authorities, there are no specific criteria for approving requests. 
It is sufficient for the investor to de monstrate the origin of the amounts it is intended to invest in Chile, and 
provide certain backgr ound information. 
68 These bodies are: the Banking and Financial Institutions Supervisory Authority, the Securities and 
Insurance Supervisory Authority, the Chilean Copper Commission, and the Fisheries Secretariat, respectively. 
69 In contrast, the investor can request the amendmen t of the foreign investment  contract, at any time, 
to increase the amount of investment, change its purpose,  or transfer the contractual rights to another foreign 
investor. WT/TPR/S/315 • Chile 
 
- 42 - 
 
  of the project so requires.70 Since DL No. 600 does not provide for a special dispute mechanism, 
any dispute arising in connection with DL No. 600 must be brought before the Chilean courts. 
2.43.  DL No. 600 guarantees foreign investors the right to repatriate the capital invested one year 
after entry, and profits as soon as they are gene rated; it also guarantees access to the formal 
foreign exchange market.71 Under DL No. 600, foreign investors are subject to the indirect tax 
regime and the tariff regime applicable to national investment. Nonetheless, foreign investors opting for this investment mechan ism may require their contracts to include a clause establishing 
that, for the period authorized for the investment, the tax regime in respect of sales and services 
tax, and the tariff regime applicable to the importation of capital goods not produced in Chile included on the list mentioned in Decree No. 370 of  2007 of the Ministry of the Economy, will be 
kept unchanged.
72 
2.44.  Foreign investors covered by DL No. 600 may opt for a special tax invariability regime, 
under which the firm's income is taxed at a fixed rate of 42% for up to ten years.73 
The invariability period can be extended to 20 year s for industrial and extractive projects worth at 
least US$50 million.74 Investors may waive their rights under this option, on a once-only basis, 
and ask to be subject to ordinary tax laws.75 
2.45.  Under Law No. 20.026, amending DL No. 600, investments in the mining sector worth 
US$50 million or more can benefit from a 15-year invariability period for the specific tax on mining 
activity, and also other taxes, including royalties or similar charges and mining exploration and production patents. This special regime applicable to mining cannot be combined with the aforementioned benefits under Articles 7 and 11 bis of DL No. 600. 
2.46.  The Income Tax Law allows foreign investors to reinvest up to 100% of their profits without 
paying final taxes, including in third companies. Nonetheless, the tax reform contained in Law No. 20.780, of 29 September 2014, will make it impossible to reinvest profits tax free as from 
1 January 2017. 
2.47.  In January 2015, the Chilean Government announced the presentation of a draft law 
defining a new legal framework for foreign investment in Chile. Under that law, a specialized 
institution will be set up to promote the country as a foreign investment destination, so as to 
attract more and better-quality investments. If pa ssed, this new regulation will repeal DL No. 600 
as from 1 January 2016, after which no more investment contracts will be signed under this mechanism. Contracts signed before that date will remain fully valid, however.
76 
2.4.2  Bilateral and international investment agreements 
2.48.  Most of the free trade agreements signed by Ch ile include an investment chapter, containing 
disciplines on sectoral liberalization (based on the negative lists method), national treatment, 
MFN treatment, minimum level of treatment, pe rformance requirements, transfer of capital, 
expropriation and compensation, and the settlement of disputes between investors and the State. 
2.49.  Chile also has 35 reciprocal Investment Promotion and Protection Agreements (IPPAs) 
in force, although in recent years it has opted for negotiating the inclusion of an investment 
chapter in its trade agreements. 
2.50.  Since 1991, Chile has been a signatory of the Washington Convention (1965), which set up 
the International Centre for Settlement of Investment Disputes (ICSID). It is also a member of the 
Multilateral Investment Guarantee Agency (MIGA) and the Overseas Private Investment 
Corporation (OPIC). It has also ratified the Inter-American Convention on International 
                                               
70 Article 3 of DL No. 600. 
71 Currently, all investors have access to the formal exchange market, irrespective of the channel used 
to bring their capital into Chile. 
72 Article 8 of DL No. 600. Ministry of the Economy Decree No. 370, of 2007, replaces the list of capital 
goods referred to in Article 8 of DL No. 600. 
73 Article 7 of DL No. 600. 
74 Ibid., Article 11 bis. 
75 Ibid., Article 7. 
76 Information provided by the Chilean authorities. WT/TPR/S/315 • Chile 
 
- 43 - 
 
  Commercial Arbitration and the Convention on the Recognition and Enforcement of Foreign Arbitral 
Awards. 
2.51.  Chile has signed a large number of agreements to avoid double taxation. As of 
November 2014 it had agreements of this type in force with 25 countries77; and it also has 
agreements with Austria, South Africa and the United States which are signed but not yet in force. 
Chile is currently negotiating agreements to avoid double taxation with Argentina, China, the Czech Republic, Finland and the Netherlands.
78 
 
                                               
77 Australia, Belgium, Brazil, Canada, Colombia, Croatia, Denmark, Ecuador, France, Ireland, 
Malaysia, Mexico, Norway, New Zealand, Paraguay, Pe ru, Poland, Portugal, Republic of Korea, Spain, 
the United Kingdom, Russia, Sweden, Switzerland and Thailand. Agreements to avoid double taxation that are 
currently in force, signed and concluded, can be consulted at: 
http://www.sii.cl/pagina/jurisprudencia/convenios.htm . 
78 Information provided by the Chilean authorities. WT/TPR/S/315 • Chile 
 
- 44 - 
 
  3  TRADE POLICIES AND PRACTICES, BY MEASURE 
3.1  Measures directly affecting imports 
3.1.1  Customs procedures, documents and registration 
3.1.  Customs procedures are governed by the Customs Ordinance1, the Organic Customs Law2 
and the Compendium of Customs Regulations3, together with various regulations and resolutions.4 
The National Customs Service (Customs) is responsible for customs administration in Chile. 
3.2.  In Chile, only importers of ozone-depletin g substances are subject to registration 
requirements in order to ensure compliance wi th international commitments under the Montreal 
Protocol (on the control of such substances).5 Nevertheless, if the f.o.b. value of imports exceeds 
US$1,000, the importer must use the services of a customs agent for inward clearance of the goods. Customs agents must be Chilean citizens and accredited by the National Director 
of Customs.
6 
3.3.  Goods imported into Chile may be subject to various customs regimes: definitive import, 
temporary admission, special storage, temporar y admission for inward processing, re-entry, 
transit, transhipment and redirection (Table A3.1). 
3.4.  Chile has standardized customs procedures for some of these customs destinations and 
expects a single window for definitive imports to be up and running in 2017. Transit, transhipment 
and redirection declarations have been processed electronically in some customs posts since 
December 2010. At first, customs agents could choose to submit their declarations electronically or manually, but use of the electronic system has now become mandatory in all customs posts.
7 
Moreover, a computerized system for control of  the special storage, temporary admission and 
temporary admission for inward processing duty-s uspension regimes was introduced into all of 
Chile's customs posts in 2012.8 
3.5.  Goods to be imported must remain in a customs warehouse while import procedures are 
being completed, unless these have been done in advance (i.e. before the goods arrive). Before 
the goods may enter Chile, the customs agent has to forward an entry declaration of customs destination (DIN) or declaration of entry to the Customs.
9 The documents required for preparing 
the DIN differ depending on the customs destination of the goods, but usually consist of the 
original transport document declaring the importer to be the consignee of the goods; the original 
invoice; a note of expenses, if not shown on the invoice; the packing list; the original insurance certificate, copy or photocopy, if the amount co ncerned is not shown separately on the invoice; 
and a sworn declaration of the value for transact ions exceeding US$5,000 f.o.b. In addition, any 
permits, certificates or approvals required, as a pplicable, must be presented before the goods may 
enter, together with a certificate of origin for imports subject to a preferential agreement.
10 
                                               
1 Decree Having Force of Law (DFL) No. 30 of the Ministry of Finance of 16 June 2005 (and amendments 
thereto). 
2 Decree No. 329 of 20 June 1979 (and amendments thereto). 
3 Online information from the Nati onal Customs Service viewed at: 
http://www.aduana.cl/aduana/site/artic/20070216/pags/20070216135454.html#vtxt_cuerpo_T8 . 
4 Online information from the Nati onal Customs Service viewed at: http://www.aduana.cl/otras-
leyes/aduana/2007-02-15/102245.html . 
5 The National Customs Service is responsible for administering the Register of Importers and Exporters 
of Ozone-Depleting Substances (Exempt Resolution No. 5.630 of 17 October 2007). 
6 Law No. 18.853 of 24 November 1989. 
7 Exempt Resolution No. 6548 of 15 January 2011, Exempt Resolution No. 5833 of 17 October 2011, 
Exempt Resolution No. 8630 of 31 October 2012 and Exempt Resolution No. 6473 of 11 November 2011. 
8 Exempt Resolution No. 6139 of 26 October 2011. 
9 The following information must be in cluded in the declaration: the identity of the exporter, the carrier, 
the importer or consignee and, where applicable, the cu stoms agent; the importer's tax identification number; 
a description of the goods (Harmonized System code, weight, quantity, unit price); and the customs value 
(WTO (2009), Trade Policy Review of Chile , Geneva). 
10 Compendium of Customs Regulations. Viewed at: http://www.aduana.cl/compendio-de-normas-
aduaneras/aduana/2007-04-23/125943.html . WT/TPR/S/315 • Chile 
 
- 45 - 
 
  3.6.  Some goods require prior control before inward clearance (Table 3.1). The authorities have 
stated that there is no major difference between an approval, authorization or certificate, and the document's title depends on the institution issuing it after having verified the incoming product. Such permits are issued irrespective of the origin of the product and, according to the authorities, 
are approved automatically. Most such permits are required for reasons of human, animal or plant 
health and in some instances in order to comply with bilateral agreements. 
Table 3.1 Goods which require prior control before being cl eared to enter Chile, 2014 
Goods requiring endorsement, certification or approval for final importation 
Goods Body responsible  
Firearms, ammunition, explosives and inflammable or 
asphyxiating chemical substances Directorate-General of Mobilization of the Armed Forces  
(Law No. 17.798 O.J. 21.10.72) 
Facilities for the manufacture, storage or deposit of the 
aforementioned goods Directorate-General of Mobilization of the Armed Forces  
(Law No. 17.798 O.J. 21.10.72) 
Enriched, fissile or radioactive el ements or materials, radioactive 
substances, devices or tools that emit ionizing radiation  Chilean Nuclear Energy Comm ission, Decree Min. Econ. 
No. 323 (O.J. 18.07.74) 
Maps, charts and other items showing international borders and 
Chile's frontiers  Directorate of Borders and Frontiers DFL No. 5 
(O.J. 04.08.67) 
Written or audiovisual material relating to martial arts for 
teaching purposes, without exception, irrespective of the person, 
institution or entity undertaking the transaction Directorate-General of Mobilization of the Armed Forces  
(Art. 5 of Law No. 18.356) 
Alcohol, alcoholic beverages and vinega r Agriculture and Livestock Service 
(Art. 1 of Law No. 18.164) 
Plant products and products that may be dangerous to plants, 
including machinery for agricultural and forestry use, in 
conformity with SAG Resolution No. 2979/2001 Agriculture and Livestock Service 
(Art. 1 of Law No. 18.164)  
Animals or birds, products and byproducts and waste of animal or 
plant origin  Agriculture and Livestock Service 
(Art. 1 of Law No. 18.164)  
Fertilizers and pesticides  Agriculture and Livestock Service 
(Art. 1 of Law No. 18.164) 
Food products or byproducts of animal or plant origin  Agriculture and Livestock  Service 
(Art. 1 of Law No. 18.164)  
Hydrobiological resources in any state of growth, including 
ornamental species  Undersecretariat of Fisheries (Decree No. 175 
of 1980 of the Ministry of the Economy, Development 
and Reconstruction)  
Food products of any type  Health Service (Art.2 of Law No. 18.164) 
Toxic substances or substances that are dangerous to health  Health Service (Art. 2 of Law No. 18.164) 
Pharmaceutical or food products for medical or cosmetic use  Health Service (Art. 2 of Law No. 18.164)  
Narcotics and psychotropic substances that cause addiction  Health Service (Art. 2 of Law No. 18.164)  
Fisheries products  National Fisheries Service (DFL of 15.11.83) 
Species of wild fauna and flora protected by CITES  Administrative authority as defined in Article IX of the 
Convention  
Human remains or ashes from their incineration  Ministry of Health (Sanitary Code (DFL No. 725/1968), 
(Decree No. 357/1970 of the Ministry of Health EALT) 
Worn clothing; used toys; used footwear; used vehicles  Agriculture and Livestock Service Art. 1 of Law No. 18.164  
SAG Resolution No. 1101/24.02.12  
Wastage and waste of batteries an d accumulators; waste of zinc, 
lead, antimony, beryllium, cadmium, chromium, pharmaceutical products or organic solvents  Ministry of Health Sanitary Code (DFL No. 725/1968), 
Exempt Resolution No. 714/2002 of the Ministry of Health  
Source: Online information from the Na tional Customs Service viewed at:  
http://www.aduana.cl/aduana/site/artic/20070220/pags/20070220163407.html#vtxt_cuerpo_T0 ; 
http://www.aduana.cl/importaciones-de-productos/aduana/2007-02-28/161116.html ; and 
http://www.aduana.cl/aduana/site/edic/base/port/inf_fiscalizacion.html . 
3.7.  Once a DIN has been accepted for processing, the National Customs Service may check the 
documents, conduct a physical inspection or assess the value of the goods in order to verify the 
information declared. The percentage of transactions subject to checking of the documents or physical inspection did not change significantly du ring the review period; it represented 6% of the 
total in 2010 and 5% in 2014. The National Customs Service may selectively check that the 
declarations have been completed and forwarded correctly. After the DIN has been approved and the necessary inspections completed, the goods may be withdrawn from the customs area after WT/TPR/S/315 • Chile 
 
- 46 - 
 
  the duty, taxes and other charges payable upon importation and for other customs operations 
have been paid. Storage and transport charges also have to be paid.11 
3.8.  Shipments are inspected on the basis of risk profiles, although random checks are also 
carried out. The Customs Inspection Department draws up the risk management plans, which may 
vary from one customs post to another; their purpose is to reinforce customs inspection at the 
busiest posts in Chile where the risk is greate st. Border inspection has improved following 
implementation of these plans. For example, thanks to the efforts made to combat cigarette 
smuggling, in 2013 462,004 cartons were seized, a 99% increase over the previous year (2012). 
If these cigarettes had been sold legally on the domestic market, US$18 million more in duty would have been collected. In 2014, the number of cartons seized again rose (552,120 cartons) and the duty foregone amounted to US$22 million. The plan for controlling the drugs traffic also 
showed satisfactory results in 2013, when 3,736 tonnes of illicit substances were seized, 
a 25% increase compared to 2012. This was owing to improvements in the analysis and planning 
procedures among the various customs posts in Chile and the utilization of non-invasive 
technology such as X-ray machines. The aim of th e Integrated Value Plan, which has been in force 
for over a decade, is to lessen tax evasion in import transactions by identifying the risks associated with under-valuation, and to draw up procedures to verify the prices declared by the companies 
concerned, and in 2013 it resulted in some  US$5 million being collected, a 16% increase 
over 2012.
12 
3.9.  Chile has made progress in drawing up a risk management model based on the conduct of 
operators involved in trade. To do so, it star ted to design a model for classifying importers, 
exporters, customs agents and warehouse operators which allows them to be effectively controlled 
and is based on selectivity criteria (for example,  complaints made by the Customs or customs fines 
not paid). In 2014, this model was further developed by incorporating new variables 
and information.13 
3.10.  During the period under review, a number of le gal amendments were introduced in order to 
give due procedural guarantees and these have had a noticeable impact on the procedures for 
appealing against decisions by the National Custom s Service; a judicial body has been set up in 
Chile, separate from the Customs authority, to deal with any claims. Until 2009, appeals against decisions by the National Customs Service could be made in the first instance to a regional director or the administrator of the respective Customs, an d a further appeal could be made to the National 
Director of Customs against the latter's decision; the Director's ruling was final and applied to all 
the Customs in Chile.
14 Pursuant to Law No. 20.322 of 27 January 2009, which strengthened and 
improved the tax and customs justice system, Ta x and Customs Courts (TTA) were created as 
independent judicial bodies to hear disputes that might arise in the various territorial jurisdictions. 
Appeals against decisions by the TTAs can be made to the Court of Appeal in the second instance. 
In 2014, 18 TTAs were functioning.15 Importers may present two types of appeal: (1) an appeal 
for review if there is disagreement with a decision by the Customs, and (2) a special appeal 
claiming violation of rights when a person considers that his rights have been violated as a result of an act or omission by the Customs. The Law also allows for the possibility of making an appeal directly to the Customs in the first instance, although such a procedure is not mandatory, or an 
appeal may be made directly to the Tribunals. During the review period, the National Customs 
Service also dealt with 4,318 pending cases that had been submitted under the appeals procedure in effect prior to the creation of the TTAs. 
3.11.   Compliance with technical regulations, for both imported and Chilean products, is verified 
after the products have been put up for sale, except for imports of food products, beverages, medicines, arms and radioactive substances, which are controlled at the border. 
                                               
11 Article 94 of the Customs Ordinance (DFL No. 30). 
12 Ministry of Finance (2013), Servicio Nacional de Aduanas - Balance de Gestión Integral  - Year 2013. 
Viewed at: http://www.aduana.cl/aduana/site/artic/20140407/asocfile/20140407122559/bgi__aduanas_2013.pdf . 
13 Idem. 
14 Title VI of the Customs Ordinance (DFL No. 30). 
15 Viewed at: http://www.tta.cl/opensite_20091214122940.aspx . WT/TPR/S/315 • Chile 
 
- 47 - 
 
  3.1.2  Customs valuation 
3.12.  Customs valuation procedures in Chile are governed by the Regulations on the import of 
goods into Chile , which have been amended in order to bring procedures into line with the 
WTO Customs Valuation Agreement16, and by the Rules for application of the Agreement on 
Article VII of the General Agreement on Tariffs and Trade 199417, the Customs Ordinance and 
other decisions.18 
3.13.  The National Customs Service (the Customs) is the body responsible for verifying and 
determining the customs value of imported goods. This is determined using the valuation methods 
established in the WTO Agreement on Customs Valuat ion. The transaction value is usually used to 
determine the value of the goods. It is the importer's responsibility to provide the necessary documents and information for checking that the value declared corresponds to the transaction 
value. If this information is not available, the Customs uses the other valuation methods specified 
in the Agreement in order to verify the value declared. According to information furnished by the authorities, during the review period, the transaction value was followed for 99.99% of imports. 
3.14.  If the Customs has grounds for doubting the trut h or accuracy of the value declared by the 
importer or of the substantiating documents, it allows the goods to be withdrawn while the value is being determined subject to payment of the im port taxes applicable. The importer then has 
ten days in which to forward the documents to the Customs and rectify the value declared. 
Once the value has been determined, using one of the valuation methods in the WTO Customs Valuation Agreement, the Customs informs the impo rter of the estimated value and the valuation 
method used. If the importer does not agree with the procedures, he may lodge an appeal against 
the decision. 
3.15.  Importers have the right to appeal against any act or decision by the National Customs 
Service.
19 Appeals must be made to the Regional Director or Administrator of Customs. 
The interested party may also appeal to the TTAs, which act independently of the National 
Customs Service and the Internal Revenue Service.20 
3.16.  Used goods are valued according to the tran saction value or the other valuation methods 
specified in the WTO Customs Valuation Agreement. If the importer is in possession of information 
on the actual price of the used goods, he may valu e them directly. If the price paid is unknown or 
doubtful, prices previously accepted by the Cust oms and contained in official documents are used, 
for example, import declarations, residual price certificates, faxes, valuation rulings at the 
second instance, or other documents. The prices shown in international or national specialized 
catalogues or reviews available in Chile or in other similar databases may also serve as a basis for valuation. 
3.1.3  Rules of origin 
3.17.  Chile does not apply any non-preferential rules of origin.
21 It applies preferential rules of 
origin under the regional and bilateral free trade and other preferential agreements it has signed, 
as well as for granting unilateral preferences.22 
3.18.  Rules of origin differ from one agreement to another but include general and specific rules. 
Goods are generally considered to be originating if: (a) they have been wholly obtained in the territory of one of the parties; (b) they have been the subject of a change in tariff classification in 
the territory of one party or if the value of the inputs does not exceed a specified percentage of 
the ex-factory price of the product or its f.o.b. value; or (c) they have been produced in the 
territory of one of the parties using originating materials. For production using non-originating 
materials, the percentage is determined according to a formula that may vary depending 
on the agreement. For example, in the agreemen ts with Malaysia and Viet Nam, the figure 
                                               
16 Law No. 18.525 of 30 June 1986 (amended by Decree No. 19.912 of 4 November 2003). 
17 Decree No. 1.134 of 20 June 2002. 
18 WTO document G/VAL/N/1/CHL/2 of 25 February 2014. 
19 Customs Ordinance and WTO document G/VAL/N/2/CHL/1 of 25 February 2014. 
20 WTO document G/VAL/N/1/CHL/2 of 25 February 2014 and Law No. 20.322 of 27 January 2009. 
21 WTO document G/RO/N/6 of 19 December 1995. 
22 WTO document G/RO/N/124 of 17 October 2014. WT/TPR/S/315 • Chile 
 
- 48 - 
 
  is 40%, whereas in the agreement with Turk ey it depends on the type of product.23 In some 
agreements, however (for example, those with Malaysia and Viet Nam), there is a " de minimis " 
clause which allows goods that have not been the subject of a change in tariff classification to be considered as originating if the value of all the non-originating inputs used in production, which 
have not been the subject of the required change in tariff classification, does not exceed 10% of 
the f.o.b. value of the good.
24 In addition to these "general" rules, the agreements also provide 
specific rules of origin. Origin may also be conferred through the principle of accumulation, which 
allows producers in one of the signatory countries to use raw materials from another signatory 
without foregoing the origin of the final product. 
3.19.  The level of restriction and the complexity of rules of origin vary according to the agreement 
and proof of origin is always required. In most cases, this consists of a certificate of origin for the 
goods. There are some exceptions which allow the possibility of certifying origin by means of a 
commercial document such as an invoice. These differences make it difficult to apply the agreements and may become a barrier to trade or mean that an agreement is not applied. 
The existence of divergent rules of origin may also lead to higher production costs for those 
countries which have signed numerous trade agreem ents, as is the case for Chile, particularly 
when the principle of accumulation does not exist among the various regional agreements.
25 
3.1.4  Tariffs 
3.1.4.1  Structure and levels 
3.20.  Chile's customs tariff is based on the 2012 version of the Harmonized Commodity 
Description and Coding System (HS 2012). In Ja nuary 2014, it comprised 7,785 eight-digit lines 
(compared to 7,715 in 2009) (Table 3.2). Ad valorem duty applies to all imports, with the 
exception of some agricultural products. The agricultural products subject to the price band system are wheat, wheat flour and sugar (41 eight-digit lines in the HS 2012).
26 Chile does not apply any 
seasonal tariffs. 
Table 3.2 Structure of  MFN tariffs, 2009-2014 
 2009 
(HS 07) 2014a 
(HS 12) 2014b 
(HS 12) 
Total number of tariff lines 7,715  7,785 7,785  
Non-ad valorem  tariffs (% of all tariff lines) 0.1 0.5 0.5 
Non-ad valorem  tariffs without AVEs (% of all tariff lines) 0.0  0.5 0.0  
Tariff quotas (% of all tariff lines) 0.1 0.1 0.1 
Duty-free tariff lines (% of all tariff lines) 0.5  0.5 0.5  
Average of lines exceeding zero (%) 6.0 6.0 6.2 
Arithmetic average  6.0  6.0 6.2  
Agricultural products (WTO definition) 6.1 6.0 7.1 
Non-agricultural products (including petroleum, WTO definition)  6.0  6.0 6.0  
Agriculture, huntin g, forestry and fishing (ISIC 1) 6.0 6.0 7.0 
Mining and quarrying (ISIC 2) 6.0  6.0 6.0  
Manufacturing (ISIC 3) 6.0 6.0 6.1 
Domestic tariff peaks (% of all tariff lines)c 0.0 0.0 0.5  
                                               
23 Appendix II to Annex V to the Free Trade Ag reement between Chile and Turkey. Viewed at: 
http://www.economy.gov.tr/index.cfm?sayfa=tr adeagreements&bolum=fta&country=CL&region=0 . 
24 The agreements also specify the processes and operat ions that do not suffice to confer origin, which 
include: cleaning, painting, polishing, washing, cutting or  packaging, activiti es and operations considered to be 
processing or transformation. 
25 Antoni Estevadeordal et. al. (2009), Multilateralising Preferential Rules of Origin around the World , 
IDB, Washington D.C. Viewed at: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1803029 . 
26 In 2009, the same agricultural products (wheat, wheat flour and sugar) were subject to the price 
band system; however, the number of  lines concerned was eight (eight-digit lines in HS 02). The reason for 
the increase in the number of lines is the change in the tariff nomenclature. The following are the lines in HS 2012: wheat 10019100, 10019911, 10019912, 10019913, 10019919, 10019921, 10019922, 10019923, 10019929, 10019931, 10019932, 10019933, 10019939, 10019941, 10019942, 10019943, 10019949, 
10019951, 10019952, 10019953, 10019959, 10019961, 10019962, 10019963, 10019969, 10019971, 
10019972, 10019973, 10019979, 10019991, 10019992, 10019993, 10019999; wheat flour: 11010000; sugar: 17011300, 17011400, 17011200, 17019100, 17019910, 17019920, and 17019990. WT/TPR/S/315 • Chile 
 
- 49 - 
 
   2009 
(HS 07) 2014a 
(HS 12) 2014b 
(HS 12) 
International tariff peaks (% of all tariff lines) d 0.0 0.0 0.5 
Overall standard deviatio n of applied rates 0.5  0.4 3.3  
Bound tariff lines (% of all tariff lines) 100.0  100.0 100.0  
a For products subject to price bands, 6% was used. 
b For products subject to price band s, the bound tariff rate was used. 
c Domestic tariff peaks are duties exceeding three times the overall arithmetic average applied rate. 
d International tariff peaks are rates exceeding 15%. 
Source: WTO Secretariat estimates based on da ta provided by the Chilean authorities. 
3.21.  In January 2009, there were three ad valorem  rates: 0%, 6% and 12.5%. The 12.5% rate, 
which applied to poultry meat (12 tariff lines in HS 2007) was reduced to 6% in 2012.27 
In 2014, therefore, Chile only had two rates: 0% and 6%, not taking into account tariffs resulting 
from application of the price band system. Chile's tariff structure is practically homogenous inasmuch as the 6% rate applies to 99.6% of the lines, while the 0% rate only applies to the remaining 0.4% of the lines. In other words, th e 0% rate only applies to 35 tariff lines (in the 
eight-digit HS 2012), including machinery and some means of transport such as aircraft and boats 
for leisure or fishing (Table A3.2). 
3.22.  In 2014, the average MFN rate was 6%, the sa me as in 2009 (Table 3.2). Leaving out the 
price band system, in 2014 the average tariff on both agricultural products (WTO definition) and 
non-agricultural products was 6%. In 2009, the average tariff on agricultural products (WTO definition) was 6.1% because of the 12.5% rate that applied to 12 tariff lines corresponding 
to certain agricultural products, mainly poultry meat and edible offal of poultry. Average tariff 
protection for agricultural products, taking into account the ad valorem equivalents of duty on 
products subject to price bands, is not clear-cut because it could rise or fall depending on international prices. Nevertheless, the tariff resulting from application of price bands may not be 
higher than the bound tariff. If the bound tariff rate is used for products subject to price bands as 
an approximate equivalent of the ad valorem duty, therefore, the general arithmetic average rate 
would be 6.2% in 2014 and 7.2% for agricultural products.
28 According to the authorities, 
in 2014 application of the price band always resulted in a reduction, and the MFN rate on the 
products concerned was 0%. 
3.1.4.2  Price band system 
3.23.  Chile still applies a price band system based on international reference prices for imports of 
wheat, wheat flour and sugar (Table 3.3). Under this system, using a formula, a specific duty is added to the MFN ad valorem  tariff when the reference price for the product concerned falls below 
the lower threshold ("floor") of the price band; a tariff reduction applies when the reference price 
exceeds the upper threshold ("ceiling") of the band.
29 
3.24.  More specifically, under this mechanism the increase or reduction in the ad valorem tariff is 
determined on the basis of the difference between the reference price, which is calculated every 
two months (wheat and wheat flour) or monthly (sugar) using the average daily international 
prices for wheat and sugar recorded on the most important markets30 and the "floor" and "ceiling" 
rates in the price bands. These "floor" and "ceiling" rates were set by law in 2003 and were 
reviewed towards the end of 2014, although this di d not lead to any changes; the band started to 
be reduced annually from 2007 onwards.31 
                                               
27 This rate applied to fresh, chilled or frozen cuts and offal of chickens and turkeys (Chile's 2009 tariff). 
28 For the purposes of this calculation, the bound ta riff is taken as the approximate value of the applied 
tariff as the tariffs resulting from application of price bands may not exceed the bound tariff. 
29 Law No. 19.897 of 25 September 2003 and Supreme Decree No. 831 of the Ministry of Finance 
of 4 October 2003. 
30 The most important market for wheat is pa n-Argentine wheat for 16 December to 15 June 
and Soft Red Winter  No. 2 wheat for 16 June to 15 December. For refined sugar, the most  important market is 
futures contract No. 5 for white sugar on the London Ex change and for unrefined sugar it is contract No. 11 
for unrefined sugar on the New York Exchange (Articles 8 and 12 of Supreme Decree No. 831 
of 26 September 2003). 
31 Law No. 19.897 and Supreme Decree No. 831 of 26 September 2003. WT/TPR/S/315 • Chile 
 
- 50 - 
 
  Table 3.3 Products subject to price bands 
Product (HS 2002) 
 Floor and ceiling rates for wheat according to the period of validity 
Period of validity Floor price 
US$ Ceiling price 
US$ 
Wheat (HS 1001.9000) 
Wheat flour (HS 1101.0000) 16.12.2003 until 15.12.2007 
16.12.2007 until 15.12.2008 
16.12.2008 until 15.12.2009 
16.12.2009 until 15.12.2010 
16.12.2010 until 15.12.2011 
16.12.2011 until 15.12.2012 
16.12.2012 until 15.12.2013 
16.12.2013 until 15.12.2014 128 
126 
124 
122 
120 
118 
116 
114 148 
146 
144 
142 
140 
138 
136 
134 
Product Floor and ceiling rates for sugar according to the period of validity 
Period of validity Floor price 
US$ Ceiling price 
US$ 
Cane sugar (HS 1701.1100) 
Beet sugar (HS 1701.1200) 
Sugar containing added flavouring or 
colouring matter (HS 1701.9100) 
Cane sugar, refined 
(HS 1701.9910) 
 
Beet sugar, refined 
(HS 1701.9920) 
Other (HS 1701.9990) 1.12.2003 until 30.11.2007 
1.12.2007 until 30.11.2008 
1.12.2008 until 30.11.2009 
1.12.2009 until 30.11.2010 
1.12.2010 until 30.11.2011 
1.12.2011 until 30.11.2012 
1.12.2012 until 30.11.2013 
1.12.2013 until 30.11.2014 310 
304 
298 
292 
286 
269 
253 
238 339 
332 
325 
319 
313 
294 
276 
259 
Source: Supreme Decree No. 831 of 26 September 2003. 
3.25.  The President determines the amounts of th e increases and reductions by means of a 
supreme decree issued by the Ministry of Finance six times each year (over the period from 
16 December to the following 15 December) for wheat and 12 times a year for sugar (over the 
year from 1 December to 30 November of the following year).32 The mechanism for determining 
increases and reductions has not changed since the previous review in 2009. The specific duties 
applicable to imports of wheat, refined sugar and raw sugar correspond to the difference between 
the floor rate and the reference price for each product, multiplied by a factor of one plus the ad valorem tariff.
33 The tariff reduction is the difference between the reference price and the 
ceiling rate for each product multiplied by a factor of one plus the ad valorem tariff.34 For wheat 
flour, the duties or reductions determined for wheat apply, multiplied by a factor of 1.56. 
3.26.  Under Chile's legislation, in 2014 the President of the Republic had to evaluate the methods 
and criteria for applying the price band system, taking into account the situation on international 
markets, the needs of industrial sectors and consumers, as well as Chile's trade commitments.35 
As a result of this evaluation, it was decided that the floor and ceiling rates for products subject to price bands should be permanent and those in effect from 2015 onwards are those which were 
in force in December 2014.
36 
3.1.4.3  Tariff bindings 
3.27.  Chile bound its entire tariff during the Uruguay Round. Most tariff lines, with the exception 
of certain agricultural products and another six ta riff lines (1.5% of total tariff lines) were bound 
at 25%. Agricultural products were bound  at 31.5% and comprise 99 tariff lines 
(eight-digit HS 2012). These include several dairy products, wheat and wheat flour, oilseeds and fruits, and vegetable fats and oils. The rates applicable to cane or beet sugar (six lines in the 
eight-digit HS 2012) were bound at 98% after a rectification under Article XXVIII of the GATT.
37 
Some of these products, for example, wheat, wheat flour and sugar, bound at a higher level than usual, are also subject to the price band system . Goods bound at rates of less than 25% consist 
of: bone ash at 0% (one line); some boats at 3% (three lines); plant materials for carving 15% 
                                               
32 Article 1 of Supreme Decree No. 831 of 26 September 2003. 
33 Specific duty = (Floor – reference price) * (1 + ad valorem tariff) (Supreme Decree No. 831 
of 4 October 2003). 
34 Tariff reduction = (Reference  price – Ceiling) * (1 + ad valorem tariff) (Supreme Decree No. 831 
of 4 October 2003). 
35 Article 10 of DFL No. 31 of 22 April 2005. 
36 Supreme Decree No. 1936 of 15 December 2014 and Supreme Decree No. 831 of 4 October 2003. 
37 WTO document G/MA/TAR/RS/82 of 30 October 2001. WT/TPR/S/315 • Chile 
 
- 51 - 
 
  (one line); and some turbines 23% (three lines). The MFN tariff of 6% currently applied to bone 
ash is above the bound rate of 0%. The authorities have indicated that this is a mistake and will be rectified. 
3.1.4.4  Tariff quotas 
3.28.  Chile has an MFN tariff quota of 60,000 tonnes annually for refined cane or beet sugar 
(subheadings 1701.9910, 1701.9920 and 1701.9990 in the HS) shared by Argentina (21,000 tonnes annually), Guatemala (16,700 tonn es annually), Brazil (9,700 tonnes annually) 
and other countries (12,600 tonnes annually).
38 According to the authorities, during the review 
period these quotas were not utilized because the MFN tariff was 0% owing to application of the price band system (Table 3.4). 
Table 3.4 Tariff quotas, 2009-2014 
(Tonnes) 
Tariff 
subheading Description  Year Volume of 
the quota Volume 
importeda In-quota 
tariff % Out-o f-quota 
tariff % 
MFNb 
1701.99.10; 
1701.99.20; 
1701.99.90 Cane or beet sugar and 
chemically pure sucrose, 
in solid form  2009 60,000  34,508c 0 Price band  
2010 60,000  n.a. 
2011 60,000  0 
2012 60,000  0 
2013 60,000  0 
2014 n.a. n.a. 
Preferential quotas 
1701.91; 
1701.99 Other, containing added 
flavouring or colouring matter; 
cane or beet sugar and 
chemically pure sucrose, 
in solid form  2009 15,000  11,228e 0 Price band  
2010 15,000  n.a. 
2011 15,000  0e 
2012 15,000  8,000e 
2013 15,000  8,000e 
2014 n.a. n.a. 
1701.91.00 Other, containing added 
flavouring or colouring matter  2009 30,000  3,314e 0 Price band  
2010 30,000  n,a, 
2011 30,000  0e 
2012 30,000  3,025e 
2013 30,000  0e 
2014 n.a. n.a. 
n.a. Not available. 
a Corresponds to in-quota imports. 
b WTO document G/MA/TAR/RS/82 of 30 October 2001. c Information provided by the authorities. 
d Law No. 19.897 of 25 September 2003. 
e Government of Chile, Chilean Customs, Sugar quotas. Viewed at: 
http://www.aduana.cl/aduana/site/edic/base/port/contingente.html . 
Source: Law No. 19.897 of 25 September 2003, viewed at: 
http://www.aduana.cl/aduana/site/edic/base/port/contingente.html ; and information provided by 
the authorities. 
3.29.  Chile also has preferential tariff quotas under  certain regional agreements (Table A3.3). 
It has a quota of 30,000 tonnes annually for produc ts in the subheading 1701.9100 of the HS and 
a further 15,000 tonnes for tariff subheadings 1701.91 and 1701.99 of the HS, which must have 
as their country of origin the Plurinational State of Bolivia, Costa Rica and/or El Salvador, 
as provided in the regional agreements.39 The distribution of these preferential quotas has 
changed since 2009: the 15,000 tonnes quota for tariff subheadings 1701.91 and 1701.99 of the 
HS is now given annually to the Plurinational State of Bolivia, Colombia and Honduras, and the 
30,000 tonnes for subheading 1701.9100 of the HS goes to Colombia.40 
3.30.  The sugar imported under preferential tariff q u o t a s  m u s t  b e  u s e d  a s  a n  i n p u t  i n  t h e  
manufacture of food products for the domestic market and the processing must also involve a 
                                               
38 Idem.  
39 Economic Complementarity Agreement No. 22, Chile-Bolivia, and the Free Trade Agreement between 
Chile and Central America (in force for Costa Rica since 1999 and for El Salvador since 2003) (Exempt 
Resolution No. 4.062 of 29 October 2003). 
40 Exempt Resolution No. 8.834 of 5 December 2008. WT/TPR/S/315 • Chile 
 
- 52 - 
 
  change in tariff heading. Each importer ma y use up to 20% of the total tariff quota.41 Quotas are 
allocated by means of an invitation to apply issued by the National Customs Service. The attribution is a percentage of the total sugar actually processed and used as an input for the industrial processing of food products intended fo r the domestic market by each of the producers. 
For each producer, the percentage or participatio n in the use of the sugar is calculated on the 
basis of the total utilization declared by all producers, using a formula published in the Official Journal.
42 
3.1.4.5  Tariff concessions 
3.31.  In general, all goods imported into Chile must pay import duty, except for the goods 
expressly declared exempt pursuant to a law.43 Section 0 of Chile's customs tariff lists the goods 
that may be imported with total or partial exemption from duty for certain purposes or uses.44 
Such exemptions apply to imports of goods for use, inter alia , by government authorities, foreign 
service officials, international organizations, educational and social welfare organizations, religious communities and air and maritime transport companies, as well as to donations, samples of goods 
of no commercial value and certain automobile parts. 
3.32.  The ad valorem  duties specified in various headings in Chapter 0 of the customs tariff apply 
provided that they are lower than those determin ed for the same tariff headings in the customs 
tariff. If this is not the case, the rates determined for each tariff line in Chapters 1 to 97 of the said 
tariff apply. As Chile's customs tariff has continued to reduce some of the exemptions in Chapter 0, these duties have now lost importance. 
3.33.  Since 2008, a 0% tariff has applied to the import of certain capital goods.
45 Capital goods 
and components, spare parts, replacement parts and accessories for such goods which may be 
eligible for such exemption are included in a list drawn up in a decree by the Minister of Finance. Interested parties may request the Ministry of Finance to include a capital good in the list or to 
exclude it. A technical commission examines the requests.
46 
3.34.  The payment of customs duty on capital goods may be deferred for a maximum period of 
seven years. This facility also applies to the tax on the imports of automobiles of a c.i.f. value not 
exceeding US$12,039.50 (an amount which is curre ntly being updated), provided that the 
automobile is used for public passenger transport (taxis).47 
3.35.  Chile also gives tariff concessions in connection with the free zones. 
3.1.4.6  Preferential tariffs 
3.36.  Since 28 February 2014, Chile has allowed a zero tariff on all products from least developed 
countries (LDCs), except in the case of wheat, wheat flour and sugar.48 
3.37.  The important role played by tariff preferences in Chile's foreign trade continued to increase 
during the period under review. Trade agreements with the following came into force for Chile as 
of 2009: Australia; Colombia; Ecuador; Hong Kong, China; Malaysia; Peru; Turkey; and Viet Nam. Agreements also entered into force with Canada (important amendment of a previous agreement, 
WT/REG38/N/1) and China (complementary agreements on services and investment, S/C/N/577). 
In addition, Chile has signed trade agreements with: the Plurinational State of Bolivia; Canada; China; Cuba; EFTA; the European Union; India; Ja pan; the Republic of Korea; Mercosur; Mexico; 
the Pacific 4 (P-4); Panama; the United States; the Bolivarian Republic of Venezuela; 
                                               
41 Viewed at: http://www.aduana.cl/aduana/site /edic/base/port/contingente.html . 
42 Exempt Resolution No. 4.062 of 29 October 2003, amended by Exempt Resolution No. 2.897 
of 5 July 2005. 
43 Article 103 of the Customs Ordinance. 
44 Section 0 – Special Customs Treatment. Viewed at: 
https://www.aduana.cl/aduana/site/arti c/20111222/asocfile/201112221 14144/22_seccion_0.pdf . 
45 Law No. 20.269 of 27 June 2008. 
46 The 0% tariff applies ad hoc  to capital goods which meet the definition in Law No. 18.634. 
47 Law No. 18.634 of 23 July 1987 (last amended on 4 July 2014). 
48 Law No. 20.690 of 28 September 2013 and WTO document G/C/W/695-WT/COMTD/N/44 of 
14 April 2014. WT/TPR/S/315 • Chile 
 
- 53 - 
 
  and Central America.49 Chile also grants tariff preferences to certain countries under economic 
complementarity agreements signed within the LAIA  framework. In all, Chile has signed 24 trade 
agreements with 62 economies.50 
3.38.  The preferential tariffs were examined in th e nomenclature provided to the Secretariat.51 
For those cases in which the preferential tariffs are higher than the MFN tariff, which is possible 
because Chile was continuing its unilateral liberalization process, the MFN tariff has been used. The average preferential tariff in the agreements signed by Chile ranges from 0% to 1% and in 
many agreements the percentage of duty-free line s is over 95% of the entire tariff (Table 3.5). 
Table 3.5 Analysis of the preferential ta riff under certain trade agreements, 2014 
 WTO categories 
 Total Agricultural products Non-agricultural products  
(excluding petroleum) 
 
Nomenclature 
No. 
of lines 
Average 
(%) 
Duty-free 
lines 
(%) 
Average 
(%) 
 
Duty-free 
lines 
(%) 
Average 
(%) 
 
Duty-free 
lines 
(%) 
Canada HS 96 5,852 0.1  98.6 0.5 89.0 0.0 100.0  
Costa Rica HS 96 5,851 0.2 96.1 1.1 76.1 0.1 99.0 
El Salvado r HS 96 5,855 0.3  95.4 1.3 78.4 0.1 97.9  
Mexico HS 96 5,852 0.1 98.3 0.4 92.2 0.0 99.2 
EFTA - Iceland HS 02 7,902 0.7  87.9 3.1 46.4 0.3 94.3  
EFTA - 
Liechtenstein HS 02 7,902 1.0 83.2 5.1 14.2 0.4 93.8 
EFTA - Norway HS 02 7,902 1.0  83.6 5.1 13.9 0.3 94.3  
EFTA - 
Switzerland HS 02 7,902 1.0 83.2 5.1 14.2 0.4 93.8 
China HS 02 7,902 0.2  87.8 0.1 97.2 0.2 86.4  
Honduras HS 02 7,902 0.0 99.4 0.1 98.0 0.0 99.6 
P-4 HS 02 7,902 0.0  96.8 0.2 92.2 0.0 97.5  
Panama HS 02 7,902 0.0 98.3 0.1 97.9 0.0 98.4 
European Union HS 02 7,903 0.1  98.4 0.6 89.4 0.0 99.7  
Australia HS 07 7,714 0.6 87.5 0.1 93.1 0.7 86.6 
Guatemala HS 07 7,705 0.8  78.9 2.0 58.1 0.6 82.2  
Malaysia HS 07 7,715 0.2 94.8 0.3 94.8 0.1 94.8 
Nicaragua HS 07 7,715 0.1  97.5 0.4 87.6 0.0 99.1  
Turkey HS 07 7,715 0.2 94.3 0.8 84.5 0.1 95.9 
Viet Nam HS 12 7,785 0.8  84.6 0.3 94.4 0.9 82.4  
Source: WTO Secretariat estimates based on data provided by the authorities. 
3.1.5  Other charges affecting imports 
3.39.  Chile's National Customs Service collects fees for providing certain services. The customs 
regulations determine the fees payable to the Cust oms Service for inspection to assess the value, 
which is conducted if the destination documents submitted do not contain the information needed 
to enable the customs officer to verify the accuracy of the application. The amount is fixed 
according to the customs destination, the extent of the service provided and the work involved.52 
The Customs also collects a fee for storing goods entering Chile under the temporary admission 
regime. The amount depends on the length of time the goods are to remain in Chile. 
                                               
49 Although this is described as a multilateral agreemen t, it is in fact a seri es of agreements between 
Chile and each Central American country, because firstl y a general agreement between Chile and the regional 
bloc was negotiated and, subsequently, through the negotiation of bilateral protocols, the special provisions opening up trade with each of the countries in the regi on were defined. At present (2014), all the bilateral 
protocols are in force. The first protocol which came into force was that with Costa Rica (14 February 2002), followed by El Salvador (1 June 2002), Honduras (19 July 2008), Guatemala (23 March 2010) and Nicaragua (19 October 2012). 
50 Information provided by the authorities. 
51 Only the tariff preferences provided  by the Secretariat were examined. 
52 Article 85 of the Customs Ordinance. WT/TPR/S/315 • Chile 
 
- 54 - 
 
  3.40.  Value added tax (VAT) at a rate of 19% applie s on the domestic sale and import of goods 
and services.53 VAT on imported goods is calculated on the basis of the customs value plus the 
import duty.54 Both domestic and imported goods may be exempt from VAT depending on their 
use or destination. Domestic or imported components or spare parts used in manufacturing or 
assembly which enter or re-enter Chile from free zones are exempt from VAT. Imports of capital 
goods used in investment projects covered by the regime specified in the Foreign Investment Statute (Decree Law No. 600) are also exempt from VAT.
55 
3.41.  There is a 50% surcharge over the general or pref erential tariff, as applicable, on imports of 
used goods. Ambulances, road cleaning vehicles and other specialized vehicles are exempt from payment of this surcharge. 
3.42.  Additional taxes are payable on some domestic and imported goods (Table 3.6). The goods 
subject to these additional taxes are the same as  those in 2009, but since the previous review in 
2009, there has been a change in the rates applicable  to certain goods: the applied rate on cigars 
increased from 51% in 2009 to 52% in 2014; there was a slight increase in the ad valorem rate on 
cigarettes from 60.4% in 2009 to 60.5% in 2014 and an additional specific tax per unit was 
added; the rate on processed tobacco rose from 57.9% in 2009 to 59.7% in 2014 and the tax on gasoline rose from 4.5 UTM/m
3 in 2009 to 6 UTM/m3 in 2014. 
Table 3.6 Indirect taxes, December 2014 
Tax Product Rate (%) Tax base 
Imports Domestic goods  
Value added tax 
(VAT)  All goods 19  Customs value 
plus import duty  Selling price at all 
transaction levels  
Luxury tax 
Art. 37 of Decree 
Law No. 825/74 Articles made of gold, platinum and 
ivory; jewellery, natural or synthetic 
precious stones; fine furs; rugs and 
fine tapestries; caviar; air or 
compressed gas guns  15 Customs value 
plus import duty Selling price at all 
transaction levels  
Luxury tax 
Art. 37 of Decree 
Law No. 825/74 Pyrotechnical articles (fireworks), 
unless for industrial, mining or 
agricultural use 50 Customs value 
plus import duty Selling price at all 
transaction levels  
Tax on beverages Non-alcoholic beverages (mineral 
waters, artificial beverages and syrups)  10 or 18 depending on 
the sugar content Customs value 
plus import duty Selling price at all 
transaction levels, except for retail sale 
Alcoholic beverages, sparkling wines, champagne, full-bodied 
wines or sweet wines, chicha, cider 
and beer 20.5
   
Liqueurs, pisco, whiskies, distilled 
spirits, including liqueur wines or aromatized wines similar to vermouth  27
   
Tax on tobacco 
products  Cigars  52.0 Consumer price Consumer price  
Cigarettes 0.0010304240 UTMa per 
unit plus 30% tax on the 
consumer price, 
including tax per packet Consumer price Consumer price  
Processed tobacco  59.7 Consumer price Consumer price  
Tax on fuels Gasoline  6 UTMa/m3 Customs value 
plus import duty 
plus VAT  Producer price, 
including VAT 
(first sale)  
Diesel 1.5 UTMa/m3 Customs value plus import duty plus VAT  Producer price, 
including VAT (first sale)  
a The Unidad Tributaria Mensual (UTM) (monthly tax unit) is an economic unit used for taxation 
purposes and adjusted monthly ac cording to the CPI (Section 1). 
Source: Information provided by the authorities. Viewed at: 
http://www.sii.cl/aprenda_sobre_impuestos/impuestos/impuestos_indirectos.htm . 
                                               
53 Online information from the IRS viewed at: 
http://www.sii.cl/portales/inversionistas/imp_chile/impuestos_iva.htm . 
54 Decree Law No. 825 of 1974 on the tax on sales and services, replaced by Decree Law No. 1.606, 
published on 3 December 1976 and updated on 5 June  2007 (hereinafter the Law on the tax on sales 
and services). 
55 Article 12 of Law No. 825 of 1974 (as amended). WT/TPR/S/315 • Chile 
 
- 55 - 
 
  3.1.6  Import prohibitions, restrictions and licensing 
3.1.6.1  Import prohibitions 
3.43.  Chile imposes some import prohibitions in order to protect the environment and human, 
animal and plant health, as prescribed in the country's legislation and its international 
commitments. The prohibitions apply irrespective of the origin of the goods. Chile prohibits imports 
of used vehicles56 and motorcycles, as well used and retreaded tyres (except for wheel-mounted 
tyres).57 According to the authorities, the prohibition remains in force for road safety reasons and 
to protect health and the environment. Some products are not subject to this prohibition.58 The 
import of used tyres is prohibited in order to prevent introduction of the aedes albopictus mosquito 
into Chile, which transmits diseases such as dengue and yellow fever. 
3.44.  The import of products containing asbestos, dangerous goods such as some pesticides for 
agricultural use, toys and articles for children containing toluene, adhesives with a volatile solvent 
base remains prohibited. Furthermore, for animal and plant health reasons, Chile may impose temporary prohibitions, as is the case for live swine.
59 
3.45.  Pursuant to the Convention on International Trade in Endangered Species of Wild Fauna and 
Flora (CITES), Chile prohibits the import of animals or plants in danger of extinction. It prohibits 
the import of toxic and hazardous waste pursuant to the Basel Convention and of ozone-depleting 
controlled substances and products containing CFCs in accordance with the Montreal Protocol 
(Annexes A, B and Group II in Annex C). 
3.46.  The Ministry of Finance is empowered to proh ibit, by means of a supreme decree, imports 
of goods coming from or originating in countries that have imposed trade restrictions on Chile.60 
The authorities have indicated that this provision has never been applied. 
3.1.6.2  Import restrictions and licensing 
3.47.  The Constitutional Organic Law of the Central Bank does not allow the establishment 
of quotas for imports (or exports), and therefore Chile does not apply quantitative restrictions.61 
3.48.  Chile does not have any import licensing regime either.62 Nevertheless, the import of 
certain products requires approval, authorization or a certificate from an official body to be 
submitted at any customs destination. The author ities have indicated that these documents are 
approved automatically. 
3.1.7  Anti-dumping, countervailing and safeguard measures 
3.1.7.1  Overall legal framework 
3.49.  There have been important changes to the legal framework for contingency measures during 
the period under review, as regards both anti-dum ping and countervailing duty legislation and that 
on safeguards. The intent of these measures is to bring the legislation closer to the spirit of the 
WTO Agreements and with Chile's position, as expr essed at the WTO, that anti-dumping measures 
should not be used to restrict trade. 
                                               
56 Article 21 of Law No. 18.483 of 28 December 1985. 
57 Exempt Resolution No. 1.108 of the Ministry of Health, published on 15 September 1994. 
58 These include: concrete-mixer trucks, ambulances, trucks for use by firefighters and for road and 
highway cleaning, armoured vehicles , caravans and vehicles for transp orting prisoners, vehicles of 
Chilean citizens who have re sided abroad for one year or more and are returning to Chile, and vehicles for use 
in free zones. 
59 WTO document G/SPS/N/CHL/473 of 23 May 2014. 
60 Article 88 of the Constitutional Organic Law of the Central Bank of Chile. 
61 Idem. 
62 WTO documents G/LIC/N/3/CHL/4 of 17 March 2009; G/LIC/N/3/CHL/5 of 17 September 2010; 
G/LIC/N/3/CHL/6 of 16 September 2011; G/LIC/N/3/CHL/7 of 18 March 2013. WT/TPR/S/315 • Chile 
 
- 56 - 
 
  3.50.  Chile's legal framework comprises Law No. 18.525 of 30 June 1986 and amendments 
thereto63, and Ministry of Finance Decree No. 1.314 of 22 March 2013 establishing the 
implementing Regulations for Law No. 18.525. It also includes the WTO Agreement on 
Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement), Agreement on 
Subsidies and Countervailing Measures (SCM Agreement), Article XIX of the GATT 1994 and 
Agreement on Safeguards, which have force of law pursuant to Supreme Decree No. 16 of the Ministry of Foreign Affairs (RREE) of 17 May 1995, together with the provisions on contingency 
measures contained in the various trade agreements. 
3.51.  Among the legal changes introduced during the review period are Ministry of Finance Decree 
No. 1.314 of 22 March 2013 consolidating and replacing Decree No. 575 of 17 June 1993, which established the implementing Regulations fo r Article 11 of Law No. 18.525. and Ministry of 
Finance Decree No. 909 of 17 June 1999 containing the implementing Regulations for applying 
safeguard measures. Decree No. 1.314 is also kn own as the Anti-Distortion Regulations and has 
been notified to the WTO.
64 
3.52.  Law No. 20.514 of 22 June 2011 extends the validi ty of safeguard measures from one to 
two years and fixes the total period of application of the measure, including the provisional application period, the initial measure and its extension, at four years. The Law also provides that, 
if a measure exceeds one year, including its provisional application period, the measure in effect 
must be reviewed each year, taking into account  the situation of the industry affected and the 
rules laid down in the international agreements in force. 
3.53.  The changes introduced by Decree No. 1.314 co ncerning anti-dumping and countervailing 
measures are intended to limit their use still further by shortening the maximum period for an 
investigation. This is in addition to another important aspect of Chile's anti-dumping and countervailing measures regime, na mely, that measures may only last for one year and may not 
be renewed. The changes affecting safeguards in Law No. 20.514 of 22 June 2011, however, 
appear to go in the opposite direction, as th e new regulations extend their possible application 
period from one to two years, the same as for the renewal period. Although these time-limits are 
still lower than those in the WTO Agreement on Safeguards, their extension is contrary to the aim 
of lessening the protection given by anti-dumpi ng and safeguards measures amendments. It has 
been sought to offset the potentially trade restrictive effects of the extension by requiring annual review of the measure when its application period exceeds one year. 
3.54.  The National Commission responsible for investigating distortions in the price of imported 
goods (CNDP), created by Law No. 18.525, is the competent authority for anti-dumping, 
subsidy and safeguards investigations. The CNDP is composed of the National Economic 
Prosecutor, who chairs the Commission, two representatives of the Central Bank of Chile, 
a representative each from the Ministries of Finance, Agriculture, the Economy, and Foreign Affairs, respectively, and by the National Director of Customs. The Central Bank is 
responsible for the CNDP's Technical Secretariat. The Commission's decisions are adopted by 
a majority of votes cast and, in the case of a tie, the Chair has the casting vote. 
3.1.7.2  Anti-dumping and countervailing measures 
3.55.  The investigation procedure commences with the submission of a complaint or request to 
the CNDP from the domestic industry affected; the latter must prove that prices have been 
distorted and that this is causing it actual or imminent material injury.
65 The CNDP verifies and 
establishes whether there is a distortion causing or threatening to cause injury to the domestic 
industry. It may initiate an investigation ex  officio, but this is infrequent. The President of the 
                                               
63 For example, Law No. 19.612 of 31 May 1999, which amended Law No. 18.525 with regard to 
safeguards, and Law No. 20.514 of 22 June 2011, which introduced subsequent amendments to Law No. 18.525 with regard to safeguards. 
64 WTO documents G/ADP/N/1/CHL/2/Suppl.1; G/SC M/N/1/CHL/2/Suppl.1; G/SG/N/1/CHL/2/Suppl.2, 
of 13 May 2013. 
65 Following WTO rules and pursuant to Law No. 18.525, a complaint is considered to have been made 
"by or on behalf of the domestic industry" if it is supported by those domestic producers whose collective 
output constitutes more than 50% of the total production of the like product produced by that portion of the 
domestic industry expressing either support for or opposition to the application. No investigation is initiated 
when domestic producers expressly suppo rting the application account for less  than 25% of total production of 
the like product produced by  the domestic industry. WT/TPR/S/315 • Chile 
 
- 57 - 
 
  Republic decides which goods are to be subject to such duties, and their amount and duration, 
following a report from the CNDP. The duties ma y not exceed the margin of the distortion and 
their duration may not exceed one year. 
3.56.  Within 60 days from the initiation of the investigation, the CNDP may recommend to the 
President of the Republic that provisional duties be applied. In the case of provisional 
anti-dumping measures, at the request of exporter s representing a significant percentage of the 
trade involved and subject to a recommendation by the Commission, the period of application may 
not exceed six months. Where the CNDP, in the course of an investigation, considers or examines 
whether a duty lower than the margin of dumping would be sufficient to remove injury, the above-mentioned maximum periods of four or six months may be extended to six and nine months, respectively. Investigations into dumping or subsidization must be concluded within 
nine months of the date of publication of the notice of initiation. This is one of the changes 
introduced by the new regulations. Previously, the investigation had to be concluded within one year and at the latest 18 months after its initiation. 
3.57.  If the investigation shows that there are pric e distortions and these are causing actual or 
imminent material injury to the domestic industry, the CNDP issues a resolution recommending to the President of the Republic the application of definitive anti-dumping or countervailing duties. 
The duties must not exceed the margin of the distortion and may not be imposed for more than 
one year. The President may decide not to follow the CNDP's recommendation and refrain from imposing anti-dumping or countervailing duties or may impose duties lower than those recommended, but is not empowered to impose du ties higher than those recommended by the 
CNDP. The duties may not be renewed and may only be extended if the CNDP carries out a new 
investigation and finds it necessary to recommend the application of new duties. The Commission may at any stage, provided that it has valid grounds to do so, recommend to the President of the 
Republic, through the Ministry of Finance, that the measures in effect be mo dified or removed prior 
to their expiry date. 
3.58.  When the investigation has been completed, if the CNDP decides that there is no distortion 
in the price of the goods concerning which it requested provisional measures, or that distortions do 
exist but do not cause actual or imminent material injury to the national economy, the persons affected by the provisional measures may apply fo r the refund of such payments within a period 
of 90 days. This also applies when the provisiona l duties exceed the definitive duties. Current 
interest shall accrue on the amounts to be refunded. The initiation and termination of the 
investigation, together with all preliminary and final determinations by the CNDP, shall be published by means of the relevant notifications in the Official Journal and in reports on the 
CNDP's sessions which, once approved, are published and may be viewed on the CNDP's website. 
3.59.  Chile's legislation permits the application of definitive duties retroactively under certain 
circumstances. Anti-dumping or countervailing duties may be applied retroactively for the period 
for which provisional measures have been applied, when the CNDP's final determination with 
regard to injury is that: (a) the imports subject to investigation have caused material injury; or (b) the imports subject to investigation have caused a threat of material injury in circumstances where, in the absence of a provisional measure, that determination would have been of material 
injury. Where the definitive anti-dumping or countervailing duties applied retroactively are higher 
than the duties paid in respect of the provisiona l measure, the difference shall not be collected. 
Where they are less, the difference shall be refunded. 
3.60.  There are also circumstances in which it is possible to apply a retroactive provisional duty. 
If there are massive
66 imports, definitive anti-dumping or countervailing duties may be applied to 
products subject to those definitive measures which have been imported within the 90 days prior 
to the date of entry into force of a provisional measure, when the Commission determines that in 
the case of anti-dumping duties: (i) there is a hist ory of dumping in relation to the product subject 
to the measure which caused injury or the import er was, or should have been, aware that the 
exporter practised dumping and that such dumpin g would cause injury; and (ii) the injury is 
                                               
66 The Anti-Distortion Regulations define massive impo rts as imports of the product being investigated, 
from the date of initiation of the investigation to the date  of entry into force of a provisional measure, which in 
light of their timing, volume and othe r circumstances, such as a rapid build -up of inventories of the imported 
product, are likely to seriously undermine the reme dial effect of the definitive anti-dumping or 
countervailing duty. WT/TPR/S/315 • Chile 
 
- 58 - 
 
  caused by massive imports of the subsidized product in a relatively short time. In the case of 
countervailing duties, the CNDP must determine that: (i) there are critical circumstances; (ii) there 
is injury which it would be difficult to repair caused by massive imports in a relatively short time of a product benefiting from subsidies granted incons istently with the provisions of the GATT 1994 
and the Agreement on Subsidies and Countervailing Measures; and (iii) the retroactive application 
of definitive countervailing duties is necessary to preclude the recurrence of such injury. 
3.61.   Chile's legislation has no provision for the application of anti-circumvention measures. 
3.62.  Between January 2009 and October 2014, Chile initiated eight anti-dumping investigations 
(in comparison with three during the period 2003-2008); seven of these concerned imports from Argentina: three related to imports of broken maize, one to food preparations for animals containing a minimum 20% of maize, another to imports of wheat flour, one to poultry meat, and 
another to imports of autoadhesive materials. An investigation was also initiated into imports of 
melamine resin boards from Austria. Three of these investigations led to provisional duties, and in two of the cases these were subsequently confirmed by definitive duties.
67 The third case was 
closed without the imposition of definitive duties.68 In addition to the cases mentioned, definitive 
duties were imposed in connection with an investigation initiated in 2008 also concerning wheat flour from Argentina.
69 The other five investigations terminated without the imposition of either 
provisional or definitive duties. 
3.63.  At 30 June 2014, Chile did not have any anti-dumping investigations under way and did not 
apply any definitive or provisional anti-dumping duties.70 The situation was the same at the end 
of March 2015. 
3.64.  Chile did not initiate any subsidy investigation during the period under review. 
In January 2015, no countervailing duties were in effect and no investigations under way in relation to subsidization. 
3.65.  There are provisions on non-application of anti-dumping measures between the parties in 
some of the RTAs signed by Chile, for instance those concluded with Canada and EFTA. Other agreements confine themselves to reaffi rming the provisions of the WTO Anti-Dumping 
Agreement (for example, the P-4 and the agreements  with the United States and China) or do not 
contain any provisions on this subject (agreement with Japan). 
3.66.  In May 2009, Argentina requested consultations with Chile on the anti-dumping measures 
adopted in January 2009 in connection with im ports of wheat flour from Argentina, which 
led to the application of definitive duty of 30.3% by Chile.
71 The dispute remained at the 
consultations stage. 
3.1.7.3  Safeguard measures 
3.67.  At the written request of a domestic industry, or on its own initiative, the CNDP may initiate 
a safeguards investigation to determine whether or not there is serious injury or threat of injury to the domestic industry in question. Safeguards investigations must be concluded within 90 days as 
of their initiation. Within this period, the CNDP must decide whether, in the light of the information 
available, it can be concluded that a product has been imported in such increased quantities and 
under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive products. If this is the case, it has to issue a resolution 
recommending to the President of the Republic th e imposition of tariff surcharges. The President 
adopts a final decision by means of a Ministry of Finance decree. The President may decide not to follow the CNDP's recommendation and refrain from imposing the safeguard measure or may 
                                               
67 The cases subject to both provisional and definitive  duties were those on imports of wheat flour from 
Argentina (2009 and 2011), which resulted in the applic ation of provisional duties of 22.2% and 9.7%, 
respectively, and then definitive anti-dumpi ng duties of 17% and 9.7%, respectively. 
68 In the case of broken maize from Argentina, a provisional duty of 10.8% was imposed, but no 
definitive duties were ap plied. WTO document G/ADP/N/252/CHL of 28 March 2014. 
69 The definitive duty of 30.3%, the same as the pr ovisional duty previously  determined, was imposed 
for one year as of 7 January 2009. 
70 WTO document G/ADP/N/259/CHL of 13 October 2014. 
71 WTO document in the G/DS393 series. WT/TPR/S/315 • Chile 
 
- 59 - 
 
  impose duties lower than those recommended, but is not empowered to impose duties higher than 
those recommended by the CNDP, 
3.68.  Chile's legislation allows that, in emergencies where any delay would cause damage which it 
would be difficult to repair, and within 30 days of the initiation of an investigation, the CNDP may 
request the President of the Republic to apply pr ovisional tariff surcharges. The CNDP's decision 
must be based on a preliminary determination of clear evidence that increased imports have caused or are threatening to cause serious injury. 
3.69.  Chile does not apply quantitative safeguard measures. Safeguard measures may only be 
adopted in the form of tariff surcharges and these must be ad valorem , the use of specific tariffs 
not being permitted. There are also certain restrictions regarding the proposed surcharge and if, when added to the tariff in effect, it exceeds th e tariff bound in the WTO, the approval of three 
quarters of the members of the CNDP is required. Surcharges may be applied provisionally if the 
CNDP so decides within a period not exceeding 30 days as of the initiation of the investigation. Provisional measures may not be imposed for more than 200 days. 
3.70.  As a result of the changes introduced by Law No. 20.514 of 22 June 2011, which extended 
the total period of validity of safeguard measures, they may now not be imposed for more than two years (previously it was one year), including the period of application of the provisional 
measure. Definitive safeguard measures may be extended by the President for a period not 
exceeding two years (prior to the legal amendment, this time-limit was one year), at the request of the domestic industry seeking the measure, following a favourable report from the CNDP, which may also initiate an examination of the extension ex officio and recommend its application. 
The measure may not remain in effect for mo re than four years (previously two years). 
As mentioned above, the Law also provides that, where a safeguard measure is applied for more than one year, including the period of application of the provisional measure, the measure in effect 
must be reviewed annually, taking into consideration the situation of the domestic industry 
affected. A timetable for its gradual dismantling must also be drawn up. The CNDP may at any time recommend that the application of tariff surcharges be modified or annulled prior to 
their expiry date. 
3.71.  The Law gives the possibility of compensation for application of a safeguard measure. When 
so agreed, the President of the Republic may, th rough a Supreme Decree of the Ministry of Finance 
and for the period of application of the measure, lower tariffs or accelerate the tariff reduction 
process provided in the corresponding trade agreement. Furthermore, the Law also gives the 
President of the Republic authority, through a Supr eme Decree of the Ministry of Finance, to raise 
the tariffs applicable to goods from other countries when no agreement on adequate compensation 
under a safeguard measure has been agreed by this country in respect of Chilean goods. 
3.72.  Between January 2009 and October 2014, Chile initiated four safeguards investigations 
(in comparison to three over the period 2003-20 08); one related to powdered milk and Gouda 
cheese; another to broken maize; one to grain corn ; and another to pigmeat; all were notified to 
the WTO.
72 Of these, three were initiated at the re quest of the interested party and another 
(broken maize) ex officio. In three cases, prov isional surcharges were imposed (powdered milk 
and Gouda cheese, broken maize and grain corn).73 In one case, the result was the application of 
definitive surcharges (grain corn), but only for a period of five months.74 In the case of pig meat, 
no provisional or definitive surcharges were im posed. In December 2014, no safeguard measures 
were in effect and no investigations were being conducted. 
3.73.  Chile also has safeguard provisions in the RTAs it has signed. These usually cover various 
types of safeguard. There are bilateral safeguards , which only apply to trade between the parties 
and are normally imposed only during the tariff reduction period. The agreements also include 
safeguards to protect sensitive sectors such as ag riculture and textiles; their use is governed by 
the corresponding agreement and they are subject to  special procedures and to limits on the type 
                                               
72 WTO documents G/SG/N/6/CHL/12 of 18 September 2009; G/SG/N/6/CHL/13, G/SG/N/7/CHL/10, 
G/SG/N/11/CHL/6 of 2 May 2012; G/SG/N/6/CHL/14, G/SG/N/8/CHL/6 of 23 April 2013; and G/SG/N/6/CHL/15 of 6 June 2013, respectively. 
73 The provisional surcharges applied were 15% for powdered milk and Gouda cheese; 10.8% for 
broken maize; and 9.7% for grain corn. 
74 The definitive surcharge was 10.8%. WT/TPR/S/315 • Chile 
 
- 60 - 
 
  of measure that may be utilized. Application of the safeguard measures provided in 
trade agreements is governed, in a suppletive manner, by the rules in Law No. 18.525 and its implementing Regulations and by Law No. 20.514 of 22 June 2011. Where there is inconsistency 
between these rules and those contained in th e aforementioned agreements, the latter shall 
prevail to the extent of the inconsistency. 
3.74.  During the period under review, Chile made  use of the bilateral safeguard mechanism 
provided in the P-4 Agreement and applied a 3% tariff surcharge on imports of butter and 
Gouda cheese from New Zealand for a period of 18 days (from 12 to 30 June 2014). 
3.75.  Some of the RTAs signed by Chile also cont ain provisions exempting one or more parties 
from the imposition of global safeguard measures  adopted within the WTO framework, although in 
the most recent RTAs signed by Chile there ar e no such exceptions. Exempting preferential 
partners from application of a global measure such as a global safeguard may have 
trade-distorting effects for the trading partners that are not affected by the measure. 
3.1.8  Standards and technical regulations 
3.1.8.1  Legal and institutional framework 
3.76.  The legal framework for the drafting and application of technical regulations, standards and 
conformity assessment procedures remained unchanged during the period under review. 
The system for applying these measures in Chile is transparent and open, in accordance with the 
requirements of its legislation. The measures  are drafted on the basis of principles of 
non-discrimination and transparency and recourse to international standards. Through its regulatory agencies and in accordance with the Transparency Law, in force since 2008, Chile is 
required to publish on its website all the technical regulations and conformity assessment 
procedures in effect. Nonetheless, Chile also has a Technical Regulations Gateway intended to 
centralize this information, making it easier for potential new exporters to find information on 
access to its market. During the review period, Chile prepared and notified a large number of 
technical regulations. Between January 2009 and th e end of December 2014, it submitted 209 new 
notifications of technical regulations to the WT O in comparison with 53 between January 2003 and 
January 2009. Chile also forwarded 65 addenda to notifications over this period, together with 
seven corrigendums. 
3.77.  Chile's legislation on technical regulations includes: the Agreement on Technical Barriers to 
Trade (TBT Agreement), which came into force in Chile in May 1995 pursuant to Supreme Decree 
No. 16 of the Ministry of Fore ign Affairs of 17 May 1995; Law No. 19.912 of 4 November 2003, 
which creates a mechanism for compliance with the notification commitments under the TBT Agreement; Decree No. 77 of the Ministry of the Economy of 14 June 2004, which lays down the 
requirements to be met by competent institutions when drafting, adopting and applying technical 
regulations and conformity assessment proced ures; Decree No. 308 of 15 February 2008, 
amending the aforementioned Decree: and the series of RTAs signed by Chile. In this connection, 
most of the RTAs signed by Chile include a chapter on technical regulations, standards and 
conformity assessment procedures, covering rules in areas such as: transparency, equivalence, technical and regulatory cooperation and creation of a TBT committee. 
3.78.  Decree No. 77 of the Ministry of the Econ omy of 14 June 2004 constitutes the basic 
regulations for all agencies involved in preparing technical regulations and conformity assessment 
procedures and lays down the principles that shou ld govern the drafting of technical regulations. 
They must, as far as possible, be based on dome stic or international regulations, not create 
unnecessary barriers to trade, and be founded on operational criteria. MFN and national treatment 
principles also have to be taken into account when drafting technical regulations. 
3.79.  The Regulations Department in the Directorate-General of International Economic Relations 
(DIRECON), within the Ministry of Foreign Affairs, is responsible for administering the 
TBT Agreement, acting as the enquiry point for matters relating to technical regulations and conformity assessment procedures and making notifications to the WTO. The National Standardization Institute (INN) is in charge of drafting technical regulations, applied 
on a voluntary basis. WT/TPR/S/315 • Chile 
 
- 61 - 
 
  3.80.  The role of the National Commission on Technical Barriers to Trade, chaired by the 
DIRECON, is to comply with the commitments in  the TBT Agreement and to coordinate Chile's 
position in the relevant trade negotiations among participating bodies.75 In the course of this 
review, the authorities stated that, although there was currently no formal working group with the 
private sector, work on preparing technical regulations was conducted in cooperation with the 
private sector and, in general, all regulatory aspects were coordinated. The authorities indicated that each of the regulatory agencies has intern al mechanisms for coordination with the private 
sector when drafting technical regulations and conformity assessment procedures. Some examples 
of these are the Ministry of Health's Committee on  Food Health Regulations and the Ministry of 
Agriculture's Round Table on Meat. The authorities have also pointed out that an Export Competition Council has recently been created, under the Ministry of the Economy, and 
DIRECON acts as its technical secretariat. One of this Council's aims is to eliminate the trade 
barriers faced by the export sector. 
3.81.  During the period under review, two concerns  or complaints regarding Chile's technical 
regulations were brought before the WTO Committee on Technical Barriers to Trade. The first 
concerned the nutritional labelling requirement for foodstuffs
76, and was a concern expressed by 
Canada, Mexico and the United States. The other was a concern expressed by the United States 
concerning the Protocol of the Electricity and Fuels Supervisory Authority (SEC) on printers. 
3.82.  Chile is a member of various international organizations involved in standardization and 
related activities: the International Organization for Standardization (ISO), the Inter-American Metrology System (SIM), the Panamerican Standards Commission (COPANT), the International 
Accreditation Forum (IAF), the International Laboratory Accreditation Cooperation (ILAC), the 
Inter-American Accreditation Cooperation (IAAC), the International Bureau of Weights and Measures (BIPM) and the Codex Alimentarius. It is also an associate member without voting rights 
in the MERCOSUR Standardization Association (AMN). 
3.1.8.2  Technical regulations 
3.83.  Technical regulations are issued at Central Government level in the form of laws, decrees or 
resolutions. They are drafted by the government  authorities responsible for regulating their 
respective areas of competence, for example, the Ministries of the Economy, Health, Agriculture, 
Transport and Telecommunications, Housing and Urban Planning, and the SEC. Those technical regulations in the form of laws have to be approved by Congress. 
3.84.  In accordance with the procedures set out in Decree No. 77 of 2004 (regulatory powers of 
the Executive) and the amendments theret o in Decree No. 308 of 2010, where technical 
regulations and/or conformity assessment procedures are required and relevant international 
standards exist or are shortly to be finalized, th e ministries or agencies empowered to adopt them 
shall use such international standards or their relevant parts as a basis for their technical regulations or procedures, unless these institutions consider that they would be an ineffective or 
inappropriate means of fulfilling the legitimate object ives pursued. It is also provided that technical 
regulations and/or conformity assessment procedures should not be more trade-restrictive than is necessary to fulfil a legitimate objective, taking  account of the risk non-fulfilment would create. 
Such legitimate objectives include national security requirements, protection of human health or 
                                               
75 The National Commission on Technical Barriers to Trade is composed of: DIRECON in the Ministry of 
Foreign Affairs (which chairs the Commission); the Minist ry of Agriculture through the Agriculture and Livestock 
Service (SAG), the Office for Agricultural Research and Policy Development (ODEPA) and the Chilean Food 
Quality and Safety Agency (ACHIPIA); the Ministry of Pu blic Works and the Supervisory Authority for Sanitary 
Services (SISS); the Ministry of the Environment; the Mi nistry of the Economy throug h the Undersecretariat of 
the Economy, the National Consumer Service (SERNAC), the National Fisheries Service (SERNAPESCA) and the Undersecretariat of Fisheries (Subpe sca); the Ministry of Energy and th e Electricity and Fuels Supervisory 
Authority (SEC); the Secretariat General of the Presid ent's Office (SEGPRES); th e Ministry of Defence; 
the Ministry of Health and the Public Health Institute (ISP); the National Standardization Institute (INN); the Ministry of Transport and Telecommunications; the Mi nistry of Housing; the Ministry of Mining; and the 
Chilean Copper Commission (Cochilco) . This is not an exhaustive list  and is open to other members. 
76 Proposed amendment to the Food Health Regula tions, Supreme Decree No. 977/96, which contains 
provisions on the nutritional composition of food and on  food advertising, in acco rdance with Law No. 20.606. 
It seeks to inform consumers of the energy, sugar, so dium and saturated fat content of foods in order to 
encourage them to avoid unnecessary, excessive intake, which can lead to obesity and related 
non-communicable diseases. WTO docume nt G/TBT/N/CHL/282 of 22 August 2014. WT/TPR/S/315 • Chile 
 
- 62 - 
 
  safety, animal or plant life or health, or the environment, or the prevention of misleading 
practices. The rules provide that technical regulati ons shall be drafted, adopted and applied in such 
a way that imported products are accorded treatment no less favourable than that accorded to like products of national origin and to like products originating in any other country. The same 
provisions apply to conformity assessment procedures. 
3.85.  Concerning the procedure to be followed, the rules state that the ministry or body having 
regulatory authority shall publish, in the form of a notice in the national media or on its website, 
the draft of the technical regulation or conformity assessment procedure that it intends to adopt. 
This notice shall include at least an extract from the draft technical regulation or conformity assessment procedure and shall state where the text can be consulted in full. At the same time, a copy of the extract and the draft regulation shal l be sent to the DIRECON. The notice shall be 
published long enough in advance of the adoption of the measure to enable anyone to submit 
comments in writing during a period of at least 60 days, except in cases of emergency relating to safety, health, environmental protection or nati onal security. Decree No. 77 also provides that, 
except in cases of emergency, the technical re gulations and conformity assessment procedures 
notified to the WTO may only be issued by the co mpetent authorities at the end of a period of at 
least 60 days following their notification to th e WTO. The ministry or authority empowered to 
regulate must examine the comments and take into account the written comments received 
internally and from other WTO Members. 
3.86.  After they have been approved, technical regu lations and conformity assessment procedures 
are published in the Official Journal and on the websites of the competent regulatory agencies. 
Technical regulations and/or conformity assessment procedures must provide for a period of at 
least six months between their adoption and their implementation. There is no centralized mechanism for reviewing or abolishing technical regulations. Nevertheless, it is customary practice 
for the competent agencies to review technical regulations and conformity assessment procedures 
on a regular basis in order to amend or repeal them, as appropriate. All domestic and imported goods must comply with the corresponding technical regulations. 
3.87.  Technical regulations and/or conformity assessment procedures must include the following 
information, as appropriate: (a) identification of the product, including its classification in the Harmonized Commodity Description and Coding Sy stem (HS) and the purpose of the measure; 
(b) the specifications and characteristics of the product, method or process established in the 
regulation in accordance with its purpose; (c) conformity assessment methods; (d) the data and 
other information to be displayed on the products or else on their containers or packaging and their marking requirements; (e) the extent of their consistency with international standards and 
guidelines used as a basis in their formulation; and (f) mention of the institution or institutions 
responsible for enforcing the regulations. Any technical regulations and/or conformity assessment procedures adopted shall be substantiated by documentary support, for example, the technical 
grounds for the decision adopted; detailed information on the process for receiving comments; 
a description of the amendments made to the original proposal as a result of the comments received; and the replies to the comments received. There should also be a description of the possible impact on the domestic market, the costs of implementation and the costs of supervision, 
as well as of the impact on small and medium-sized enterprises, as appropriate. This description 
should be at least in qualitative terms if it is not possible in quantitative terms. 
3.88.  Pursuant to the Transparency Law, every regulatory agency must publish its current 
technical regulations and conformity assessment procedures. In addition, the DIRECON has 
a Chilean Technical Regulations Gateway, which is administered in coordination with the various agencies. In December 2014, Chile had a total of around 910 technical regulations and conformity 
assessment procedures in force, of which approximately 221 had been adopted since 
January 2009. 
3.89.  As mentioned above, between January 2009 and the end of December 2014, Chile 
submitted 281 notifications to the WTO Committ ee on Technical Barriers to Trade, of which 
209 were new notifications and the remainder adde nda or corrigendums. Of the 209 notifications 
of new measures 73 concerned technical regula tions and 136 conformity assessment procedures. 
Five of these notifications involved both technical regulations and conformity assessment 
procedures. Three of them were emergency measures. The purpose of most of the measures 
notified was to protect human health and safety  and they mainly concerned foodstuffs, home 
appliances, building materials, vehicles, toys, pharmaceutical and cosmetic products, inter alia . WT/TPR/S/315 • Chile 
 
- 63 - 
 
  The government authorities which participated in drafting the measures notified included the 
Ministries of Health, the Economy, Housing and Urban Planning, Transport and Telecommunications, and the Environment. 
3.1.8.3  Standards 
3.90.  The National Standardization Institute (INN) is responsible for drafting Chilean technical 
standards (NCh), whose use is voluntary, and for disseminating them. The INN is a private-law, non-profit-making foundation set up by the Chilea n Economic Development Agency (CORFO), with 
the aim of boosting the development of Chile's production, promoting the drafting and use of 
Chilean standards, coordinating the National Metrology Network and accrediting conformity 
assessment bodies. It is also the INN's role to assist in ascertaining the need for new standards.
77 
3.91.  The internal procedure for drafting Chilean st andards is set out in Chilean Standards NCh1, 
following criteria internationally accepted by the ISO and the International Electrotechnical 
Commission (IEC). In Chile, there has been a noticeable degree of standardization in the areas of construction, foodstuffs, health, safety, quality of  life and risk prevention. The INN considers that, 
as a voluntary procedure, standardization has the advantage of lowering technical barriers to trade 
and making the best use of production resources in companies as they have better information available to choose the safest and most suitable products. Standards may also be of service to the 
regulatory authorities, which use them to complement technical regulations.
78 
3.92.  Both the INN and the public and private sectors may decide when it is necessary to draw up 
a standard. Any government or private body may ask the INN to draw up one or more standards, using one of the following two procedures: the tr aditional and the associative nucleus procedures. 
In the traditional system, the INN remains respon sible for the whole process of drawing up the 
standard, from preparation of the preliminary draft up to its approval by the INN Council. The cost of drafting a standard depends on the complexi ty of the subject. In the associative nucleus 
procedure, the body associated with the INN,  with the latter's technical support, assumes 
responsibility for obtaining background materi al and preparing the preliminary draft of the 
standard, and finances some of the costs of the standardization procedure, from the public 
consultation stage up to approval of the standard by the INN Council. 
3.93.  In the traditional system, when the necessary  financing has been obtained, a technical 
committee is set up to prepare the preliminary draft of the standard. If international standards exist, they are adapted; if there are none, regional standards, those of other countries or 
companies in the same sector are consulted. Once the standard has been prepared, the draft is 
put up for public consultation and made available on the INN website ( http://www.inn.cl ). 
Comments received as a result of the public consultation are again forwarded to the technical 
committee, which takes a decision and prepares the final text, and this is forwarded to the 
INN Council for approval. After approval, the Chilean Standard is sent to the competent ministry (ministries) for a decision on whether to include it among the technical regulations or to replace 
references to previous versions therein. Unless some legal provision makes it mandatory, the 
"officialized" standard is voluntary. In general, this is the case for standards whose main objective is to protect the health and/or safety of person s, goods, animals or plants. Chart 3.1 summarizes 
the procedure for adoption of a standard. 
                                               
77 Online information from the INN viewed at: http://www.inn.cl/normalizacion/portada/index.php . 
78 Idem.  WT/TPR/S/315 • Chile 
 
- 64 - 
 
  Chart 3.1 Flow chart showing consideration of a technical regulation 
 
Source: Online information from the National Standardization Institute viewed at: 
http://www.inn.cl/normalizacion/estudio/portada/index.php.  
3.94.  The INN keeps a catalogue of Chilean standards, together with information on standards 
under consideration, which can be viewed on its website.79 At December 2014, there were over 
3,300 Chilean standards. 
3.1.8.4   Conformity assessment 
3.95.  In Chile, conformity assessment includes ma ndatory mechanisms defined by the competent 
regulatory authority, which set out the requirem ents to be met by the conformity assessment 
bodies involved, and a voluntary accreditation system for conformity assessment bodies, administered by the INN. 
3.96.  As a general rule, for both imported and domestic products, compliance with technical 
regulations is verified after the products have been placed on the market. Nevertheless, for the import of certain products, mostly foodstuffs , beverages, medicines, weapons, radioactive 
substances, electrical goods and fuels, verification takes place at the border. In most cases, 
conformity assessment is the responsibility of bo dies accredited by the INN, although in some 
cases, the ministry or government authority that issued the technical regulation performs the 
inspection using its own infrastructure. The government authorities which recognize INN 
accreditation include the Agriculture and Livestock Service (SAG), the Ministries of the Economy, Housing and Urban Planning, Labour and Social Welfare, the National Service for Women, the 
Public Health Institute (ISP), Sanitary Servic es Supervisory Authority (SISS), the National 
Customs Service, the National Training and Employ ment Service (SENCE), the Undersecretariat of 
Fisheries and Aquaculture (SubPesca), the Nati onal Fisheries Service (SERNAPESCA) and the 
Electricity and Fuels Supervisory Authority (SEC). A declaration of conformity by the supplier is not 
acceptable. 
3.97.  The preparation and application of conformi ty assessment procedures defined by the 
competent regulatory authority follow the same stages and time-limits as technical regulations. 
3.98.  The INN, as the accreditation body, operates the national accreditation system, which 
accredits conformity assessment bodies that comply with internationally accepted requirements and the relevant regulations and directives. The different types of conformity assessment body 
which may request accreditation include bodies: certifying systems, products and persons, 
inspection bodies, testing laboratories, calibration laboratories, clinics and providers of proficiency 
tests. Accreditation is given for a four-year period. The INN keeps a list of bodies accredited and this is available on its website. At December 2014, 1,268 accreditations were in effect. 
                                               
79 The INN's website is: http://www.inn.cl . Associative 
nucleus INN 
Request for consideration 
Preparation of the preliminary 
draft of the standard 
Public consultation  
Technical committee 
INN Council 
Approval of the Chilean standard  Request to 
consider WT/TPR/S/315 • Chile 
 
- 65 - 
 
  3.99.  Chile has no mutual recognition agreements (MRA) for technical regulations with its trading 
partners. The SEC does, however, recognize the results of tests and certification by a list of organizations from 14 countries (Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Norway, Sweden, Switzerland, the United Kingdom and the 
United States). It also has multilateral recogn ition agreements (MLA/MRA) on accreditation of: 
quality management and environmental management systems certification bodies (MLA in the IAF and MLA in the IAAC), testing laboratories, clinical and calibration laboratories (MRA in the ILAC 
and MLA in the IAAC). The INN has requested the extension of its MLA to accreditation of product 
and inspection certification bodies. 
3.1.8.5  Metrology 
3.100.  In Chile, metrology is governed by Supreme Decree No. 215 of 2009 of the Ministry of the 
Economy, Development and Reconstruction (which recognizes the INN as the coordinating and 
supervisory body for laboratories designated as belonging to the National Metrology Network (RNM)), and Supreme Decrees No. 347 of 2007, No. 775 of 1999, No. 487 of 2000, No. 096 
of 2001, No. 076 of 2003, No. 158 of 2010, No. 18 8 of 2010 and No. 116 of 2012, all issued by 
the Ministry of the Economy, Development and Reconstruction.
80 These decrees specify the values 
for mass, temperature, force, length and pressure standards, and designate the laboratories 
responsible for chemical metrology of minerals, el ectric metrology, liquid flow metrology and for 
microbiology and food chemistry metrology. 
3.101.  The authority responsible for developing and maintaining national measurement standards 
is called the RNM and has been recognized by the State for the purpose of developing 
and administering the system of metrological gu arantees to ensure that measurements made 
in Chile are comparable and traceable to the Inte rnational System of Units (SI), and are accepted 
by other countries. 
3.102.  The RNM is built around the following bodies : the Ministry of the Economy, Development 
and Tourism (MEFT), the INN and the institutes appointed. The MEFT, representing the Chilean State, is responsible for appointing the laboratories composing the RNM, once they have met the 
requirements laid down by the INN, in their specif ic area of metrology. The INN is the coordinating 
and supervisory authority for laboratories belonging to the RNM so it also has the task of administering the public funds transferred for its development. The institutes appointed are those 
laboratories which, either on their own or as part of a larger structure, have been recognized as 
responsible for all or part of an area of metrol ogy, by means of a supreme decree issued by the 
MEFT. Their function is to ensure that measurements made in Chile can be traced to the SI. Its main activities are: dissemination of the SI units to accredited laboratories, industry, education 
and lawmakers; undertaking research on me trology and developing new and improved 
measurement standards and methods; and participating in comparisons at the international level. The institutes appointed provide calibration models services to calibration laboratories and 
reference material to testing laboratories. They also act as pilot laboratories for proficiency testing 
at the national level.
81 
3.1.9  Sanitary and phytosanitary measures 
3.103.  According to information provided by the authorities, Chile's legislative framework for food 
safety, animal and plant health has not undergone any major changes since 2009. Chile has no 
single law governing the sanitary and phytosanit ary system and the drafting of sanitary and 
phytosanitary (SPS) measures is the responsibi lity of a number of authorities (Table 3.7).82 
                                               
80 Online information from the National Metrology Network (RNM) viewed at: 
http://www.metrologia.cl/link.cgi/Empresa/MarcoLegal/327 . 
81 Idem.  
82 All the legislation governing animal health in Chile may be viewed online at: 
http://www.sag.gob.cl./ambitos-de-accion/sanidad-animal/107/normativas . WT/TPR/S/315 • Chile 
 
- 66 - 
 
  Table 3.7 Principal laws governing the sanitary and phytosanitary system, 2014 
Animal health 
Animal Health Law–DFL No. 16 of 9 Septembe r 1963 (last amended on 4  July 2012).  
Organic Law on the Agriculture and Livestock Service-Law No.  18.755 of 7  January  1989 (last amended on 10 Octobe r 2014).  
General Law on Fisheries and Aquaculture-Decree No.  430 of 21  January  1992 amended by Law No. 18.892 of 1989 (last 
amended on 9 January 2014). 
Regulations on Certification and Other Sanitary Requirements for the Import of Hydrobiological Species S.D. Minecon No. 
72-11.  
Regulations on the First Import of Species-Decree No.  730 of 4  May 1996.  
Amends sanitary requirements for the import of animals and products of animal origin Resolution No. 1.150 of 9 May 2000.  
Plant health 
Organic Law on the Agriculture and Livestock Service-Law No.  18.755 of 7  January  1989 (last amended on 10 Octobe r 2014).  
Decree-Law No. 3.557 of 9 February 1981 (last amended on 27  Decembe r 2009) establishing provisions on agricultural 
protection. 
Regulations on Seeds and Fruit Plants-Supreme Decree No.  195 of 1979.  
Decree establishing regulations on the authenticity of varieties-Supreme Decree No.  104 of 1983.  
Food and other safety  
Sanitary Code-DFL No. 725 of 31 January 1968 (last  amended on 14  February  2014).  
Sanitary Regulations on Foodstuffs-Decree No. 977 of 1996 (last amended on 7  Octobe r 2014).  
Law No. 19.937 of 31 Decembe r 2008 establishing a new structure for the sanitary authority, different management methods 
and strengthening participation by the public.  
Source: Information provided by the authorities. 
3.104.   The main institutions in charge of drafting and applying SPS measures are still the 
Ministries of Agriculture (through the SAG); ACHI PIA and ODEPA; Health (through its regional 
centres); the Economy (through the Undersecretariat of Fisheries and SERNAPESCA); and the 
Ministry of Foreign Affairs through the DIRECON. These bodies are responsible for applying 
SPS measures within their sphere of competence both as regards the domestic market and imports and exports. The DIRECON chairs the national commission for coordination of sanitary and phytosanitary measures. The SAG is the national notification and enquiry service for the purposes 
of the SPS Agreement.
83 T h e  M i n i s t r y  o f  H e a l t h  r e g u l a t e s  t h e  i m p o r t  o f  f o o d  f o r  h u m a n  
consumption. Food must undergo sanitary controls and laboratory analysis based on risk criteria. 
3.105.  The authorities have indicated that the procedure for drafting and notifying SPS measures 
is governed by the "Recommended procedure for im plementing the transparency obligations of the 
SPS Agreement".84 The process of preparing SPS measures starts with the need to update a 
measure or with a particular sanitary occurrence. Drafts of SPS measures are drawn up by 
technical committees, which look at the background information and take into account the relevant 
international standards. SPS measures in Chile are based on scientific evidence and, in general, on the international regulations in the Internationa l Plant Protection Convention (IPPC), the World 
Organisation for Animal Health (OIE) and the Codex Alimentarius, all organizations to which Chile 
belongs. Most of the SPS measures notified to the WTO over the period 2009-2014 were based on 
international standards.
85 If a risk assessment reveals the need for more stringent regulations than 
the international ones, however, the regulation is drafted internally. 
3.106.  SPS drafts are put up for public consultation and simultaneously notified to the WTO. There 
is a 60-day period for consultation, unless a request is made to extend this period or if it is an emergency or trade facilitation measure. The comments received are examined and taken into 
account if there is a good reason. SPS measures are enacted by means of a resolution, decree, 
regulation or other relevant legal instrument issued by the competent authority.
86 The measures 
are published in the Official Journal and availa ble on the website of the competent authority.87 
3.107.  During the period under review (2009-2014), Chile submitted 201 notifications to the 
WTO's SPS Committee, excluding addenda. The aim of over half the notifications was to protect 
                                               
83 Viewed at: http://spsims.wto.org/web/pages/settings/country/Selection.aspx . 
84 WTO document G/SPS/7/Rev.3 of 20 June 2008. 
85 Documents in the WTO series G/SPS/N/CHL/- from 1 January 2009 to 11 December 2014. 
86 In the case of the SAG, for example, SPS meas ures are enacted in the form of a resolution. 
87 Online information from the SAG viewed at: http://www.sag.gob.cl ; online information from the 
Ministry of health viewed at: http://www.minsal.cl ; online information from SERNAPESCA viewed at: 
http://www.sernapesca.cl . WT/TPR/S/315 • Chile 
 
- 67 - 
 
  plant health and the others concerned animal health and food safety. During this period no 
WTO Member presented any new complaints against Chile in the SPS Committee.88 
3.108.  The SAG defines the general and specific sani tary and phytosanitary requirements to be 
met when importing livestock or plant products.89 The general requirements concern the 
first import and transit of animals and poultry, the recognition of disease-free countries and zones 
and the approval of facilities. The specific requir ements define, by species and/or by product, the 
sanitary status applicable to: the country or zone of origin, the determination of origin, the animal 
or the product, as well as preshipment handling measures. All imports of animal or plant products 
into Chile must have a sanitary or phytosanitary certificate issued by the competent sanitary authority in the country of origin.
90 The import or transit of animals, livestock and plant products 
must be through ports authorized by the SAG where compliance with the sanitary and 
phytosanitary regulations is verified.91 Imports of plants and plant products also have to comply 
with the SAG's phytosanitary requirements, which are contained in specific regulations published in the Official Journal in the form of resolutions. 
3.109.  The SAG applies a post-entry quarantine sy stem (CPE) for the purpose of conducting 
phytosanitary tests in order to detect the presence of diseases and so prevent their entering Chilean territory. The plant materials currently subject to the CPE are plants or parts 
of plants that are intended for planting or grafting.
92 Plants and seeds are subject to quarantine 
(CPE) depending on the phytosanitary status in th eir country of origin based on a risk assessment 
in accordance with the IPPC. Likewise, all animals imported, irrespective of their origin, must be put in quarantine. 
3.110.  Where there are no specific provisions or requirements for a livestock or plant product, an 
application must be submitted to the SAG for an import permit; the SAG examines the application and, depending on the outcome, decides whether a risk assessment or a pest risk analysis needs 
to be carried out in order to determine the requirements for importing the product.
93 Depending on 
the risk the SAG decides whether import may be authorized and determines the phytosanitary requirements, which must be put up for public consultation for a period of 60 days, notified to the 
WTO and then published in the Official Journal. According to information furnished by the 
authorities, 173 resolutions concerning some 790 species were issued from 2009 to 2014. 
3.111.  The SAG is in charge of determining the rules and procedures for import and release of 
living modified plant organisms, under regulated conditions, whether produced in Chile or abroad 
and intended for release into the environment. The SAG's regulations in this respect cover both 
export and safeguard measures for the residue,  byproducts and waste. Throughout the whole 
procedure, the SAG monitors the seed banks in Chile which have living modified plant organisms in 
order to ensure their full traceability. 
3.112.  In Chile, the release of living modified plant organisms into the environment for 
propagation is permitted, subjec t to authorization by the SAG.
94 An application has to be 
submitted to the SAG for the import of transgenic seeds. This is given after a risk assessment and 
following a favourable report from the competent authority in the country of origin stating that release into the environment in that country had had no negative effects. For import to be authorized, there must be a SAG-authorized collection point where the transgenic material can be 
stored. Likewise, living modified plant organisms developed in Chile may be released into the 
environment, subject to authorization by the SAG, if a risk assessment has been conducted and it 
has been found that the tests carried out prior to its release into the environment had no negative 
effects. Authorizations to import and release living modified plant organisms, whether imported or 
                                               
88 Viewed at: http://spsims.wto.org/web/pages/settings/country/Selection.aspx . 
89 The procedure for importing agricultural products  and the requirements are described online at: 
http://www.sag.cl/ámbitos-de-acccion/productos-agricolas ; http://defensa.sag. gob.cl/reqmercado ; and 
http://www.sag.gob.cl./ambitos-de-accion/informaci on-por-productos-exigencias-sanitarias-especificas . 
90 Law No. 18.164 of 17 September 1982. 
91 Online information from the SAG viewed at: http://www.sag.gob.cl./ambi tos-de-accion/puertos-
habilitados . 
92 Viewed at: http://www.sag.gob.cl./ambitos-de-accion/cuarentena-posentrada . 
93 The pest risk analysis is based on the Internat ional Standard for Phytos anitary Measures (ISPM) 
No. 11 of the IPPC Secretariat. Viewed at: http://www.sag.gob.cl./ambitos-de-accion/productos-agricolas . 
94 Resolution No. 1.523 of 14 July 2001 (last amended on 26 October 2010). WT/TPR/S/315 • Chile 
 
- 68 - 
 
  developed in Chile, are issued on a case-by-case basis depending on the species and the genetic 
modification incorporated. 
3.113.  Chile currently allows the import of transgenic  seeds for the purposes of multiplication and 
subsequent exportation, but their import for marketing purposes, industrial use or consumption on 
the domestic market is not authorized.95 The use of transgenic maize grain for animal feed is 
authorized in Chile only when its use for animal  and human consumption has been approved in the 
country of origin and/or another country.96 
3.114.  In Chile, the competent authority for animal health for hydrobiological species and the 
safety of food of aquatic origin is SERNAPES CA, responsible for verify ing compliance with the 
fishing and aquaculture regulations, providing serv ices to facilitate their correct implementation 
and ensuring sanitary management so as to contribute towards the sustainability of this sector and 
the protection of hydrobiological resources and their environment. 
3.2  Measures directly affecting exports 
3.2.1  Customs procedures, documents and registration 
3.115.  Customs procedures for exports are governed by the Customs Ordinance97, the Organic 
Customs Law98, the Compendium of Customs Regulations99, and various regulations 
and resolutions.100 
3.116.  With the exception of goods of an f.o.b. value of less than US$2,000101, in general, 
exporters must submit to the National Customs Service, through a customs agent, the single 
export document - acceptance for processing (DUS-AT), which must contain all the information required
102, including the customs regime that will apply when the goods leave Chile.103 Goods 
must leave the country under one of the following customs destinations: export, re-export or 
temporary exit.104 The documents used as a basis for completing the DUS-AT are: the shipping 
instructions, the transport and freight documents, a copy of the commercial invoice issued and, 
where applicable, the resolution or document authorizing the destination, quality certificates, the 
                                               
95 WTO (2009), Review of the Trade Policy of Chile , Geneva. 
96 Resolution No. 3.970 of 1997 and Resolution No. 1.248 of 2013. 
97 DFL No. 30 of the Ministry of Finance of 16 June 2005 (and amendments thereto). 
98 Decree No. 329 of 20 June 1979 (and amendments thereto). 
99 Online information from the Nati onal Customs Service viewed at: 
http://www.aduana.cl/aduana/site/artic/20070216/pags/20070216135454.html#vtxt_cuerpo_T8 . 
100 Online information from the Nati onal Customs Service viewed at: http://www.aduana.cl/otras-
leyes/aduana/2007-02-15/102245.html . 
101 Section 2.1.2 of Chapter 4 of the Compendium of Customs Regulations lists all the situations in which 
the services of a customs agent are not required in orde r to complete the DUS. In such circumstances, the DUS 
is completed by the Customs, based on  the background information provided  by the exporter when presenting 
the goods in the primary customs zone. 
102 Name of the consignee or exporter, address, muni cipality, customs post, port  of loading, type of 
cargo, means of transport, code of the region of origin , port of unloading, country of destination, name of the 
transport company, name of the issuer, name of the ship, number of the voyage, authorizations, volume of the 
goods, f.o.b. value, gross weight, type and quantity of containers, inter alia . 
103 Article 72 of the Customs Law. 
104 Compendium of Customs Regulations, section 2.1.1 of Chapter 4 Exit of Goods. WT/TPR/S/315 • Chile 
 
- 69 - 
 
  approvals and/or authorizations required.105 These approvals, certificates, endorsements and/or 
authorizations may be obtained electronically using the single window for foreign trade.106 
3.117.  The customs agent is responsible for completing  and forwarding the DUS electronically to 
the National Customs Service. Once the DUS has been accepted for processing, this means that 
the goods have been submitted to Customs and are authorized to enter the customs area (primary 
zone) and be shipped abroad. There may be a physical inspection or verification of the documents. The goods to be inspected are selected according to a risk-profile-based assessment. The 
authorities have indicated that in 2014, 3.92% of the DUS-AT processed were reviewed. Once the 
Customs has accepted the DUS, the goods must be  loaded within 25 days from the date of its 
acceptance for processing. After the DUS has been  accepted, it has to be legalized. This means 
that the customs destination has been formalized and all the legal and regulatory procedures 
allowing the goods to leave Chile legally have been completed, following which the relevant 
declaration is drawn up. The procedures for prep aring the DUS-Legalization and its submission to 
the National Customs Service for legalization of the operation are very similar to those for 
presentation of the DUS-AT.
107 
3.118.  The integrated foreign trade scheme (SICEX), wh ich will allow transactions for the export, 
import and transit of goods to be conducted elec tronically, was used, for the export module, under 
a pilot plan which started in the second half of  2013 and was extended to all export transactions 
in 2014.108 The SICEX is administered and coordinated by the Ministry of Finance. For the first 
phase of the project, the participating entities are: the National Customs Service; SERNAPESCA; 
the ISP; the Chilean Copper Commission (COCHILCO); the SAG; the Internal Revenue Service 
(IRS); and the Secretariat-General of the Republic. Other government bodies involved in foreign 
trade procedures will be integrated into the ga teway in the course of the project. Currently, 
products listed in the "Catalogue of SICEX products" can be exported using the SICEX and more 
products will be added until all exportable products are included. The SICEX gateway can be used 
to prepare an export declaration, request author izations from the competent government services, 
apply for the certificates to be submitted at the destination for the transaction concerned, 
and undertake all the necessary customs procedures, including submission of the DUS-AT for 
processing, modification and legalization. 
3.119.  Exporters whose exports' f.o.b. value is US$50 million or more annually have to inform the 
Central Bank.109 
3.2.2  Export taxes and duties 
3.120.  Chile does not impose any taxes or other duties on exports.110 Exports are generally 
exempt from VAT, as are the domestic raw materials used to manufacture them.111 
                                               
105 The following goods require approval, certificat es or endorsement for their export: firearms; 
ammunition; explosives and inflammable or asphyxiatin g chemical substances and the facilities for their 
manufacture; storage or deposit (Directorate-General of Recruitment and Mobilization of the Armed Forces); 
enriched fissile or radioactive elements or materials, ra dioactive substances, devices or tools that emit ionizing 
radiation (Chilean Nuclear Energy Commission); works by Chilean or foreign artists (Directorate of Libraries, 
Archives and Museums of the Ministry of Education); plant products (SAG); written or audiovisual material 
relating to martial arts for teaching purposes (Direc torate General of Mobilizat ion of the Armed Forces); 
specimens of wild fauna or their byproducts; certif ied bean seeds (SAG); fisheries products; meat of 
Southern king crabs, crabs, crayfi sh and false abalone; graciliaria seaweed (SERNAPESCA); species of wild 
fauna and flora protected under the CITES (administrative au thority defined in accordance with Article IX of the 
Convention); and pharmaceutical pr oducts (ISP) Chilean Customs, Comp endium of Customs Regulations, 
Annex 40. Viewed at: http://www.aduana.cl/aduana/s ite/artic/20070222/pags/20070222114703.html . 
106 Compendium of Customs Regulation s, Chapter 4 (Section 3.10(f)). 
107 For further details see Section 8 of Chapter 4, Exit of Goods,  in the Compendium of Customs 
Regulations. 
108 Decree No. 1.049 of the Ministry of Finance of 5 November 2010; Exempt Resolution No. 611 of the 
Ministry of Finance and the National Customs Service of 5 February 2014; viewed at: http://www.sicexchile.cl/portal/preguntas-frecuentes  and information provided by the authorities. 
109 Chapter 4 of the Compendium of International Exch ange of the Central Bank of Chile. Viewed at: 
http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapIV.pdf . 
110 Article 112 of the Customs Ordinance. 
111 Paragraph 4 of Article 12 of Decree No. 825 of 1974 (as amended). WT/TPR/S/315 • Chile 
 
- 70 - 
 
  3.121.  Exporters have the right to recover the VAT paid when purchasing goods or using services 
for their export activities, as well as that on imported goods used to manufacture products to be exported.
112 Exporters of services may also recover VAT paid on services to persons not domiciled 
or resident in Chile provided that the service is declared an export in a resolution issued by the 
National Customs Service. The service must be provided in Chile to persons not domiciled or 
resident in Chile and be used exclusively abroad, except those services provided for goods in transit through Chile. The service provider must have its operations (and not only provide the 
service) in Chile, and have its residence or domicile in Chile, or provide the service through a 
company covered by the rules in the Income Tax Law.
113 
3.2.3  Export prohibitions and restri ctions and licensing regimes 
3.122.  Chile does not in general prohibit exports, and does not apply an export licensing regime 
or quotas.114 Such measures are only imposed in order to ensure compliance with international 
agreements signed by Chile, for example, the Mont real Protocol or CITES, or to protect culture, 
the environment or human health. The prod ucts which may not be exported include 
anthropological, archaeological, ethnic, historical and paleontological objects and items; pehuen or 
Chilean pine ( araucario araucana ); and psychotropic substances.115 
3.2.4  Support for exports 
3.123.  As notified to the WTO, over the period 2009-2013 Chile did not grant any export subsidies 
for agricultural products.116 Nevertheless, in order to promote its exports, Chile still offers 
exporters tariff and tax concessions. 
3.124.  Exporters can usually obtain the reimbursement of the customs duties and other taxes paid 
on the import of raw materials, semi-processed goods, components or spare parts if these inputs 
are incorporated into or used to manufacture the goods exported.117 Exporters taking advantage of 
this benefit may not, for the same product, be elig ible for the simplified drawback system for taxes 
on non-traditional minor exports. Between Ja nuary 2009 and December 2014, Chile refunded 
US$121 million under the general drawback system.118 
3.125.  Chile still applies the simplified drawback system for taxes on non-traditional minor 
exports.119 Under this system, non-traditional exports containing at least 50% of imported inputs 
are eligible for reimbursement of 3% of the f. o.b. value of the goods exported. Each year, 
the MEFT publishes the list of products not eligible for this programme and the maximum amount of the value of exports, by tariff heading, that may benefit from drawback.
120 The two drawback 
systems remain in place, as the procedures for obtaining reimbursement are more straightforward 
under the simplified system. The general law on dr awback requires full accounting records and this 
is complicated for small companies, which theref ore prefer the simplified system. The amount 
reimbursed under the simplified system did not change to any great extent during the period 
under review, ranging from US$2.61 million in 2010 and US$4.56 million, reaching a total of US$20.59 million over the period 2009-2014 (up to 31 October). 
3.126.  In addition to these tariff concessions, the temporary admission for inward processing 
regime (DATPA)
121 allows companies producing goods for export to import raw materials, 
semi-processed goods and components and spare parts from abroad without paying import duties or other taxes or VAT. The authorities consider the DATPA to be export support. The beneficiaries 
                                               
112 Decree Law No. 825 of 31 December 1974 (last amended in 2014). 
113 Exempt Resolution No. 002511 of 16 May 2007. Viewed at: http://www.aduana.cl/ resolucion-exenta-
n-002-511/aduana/2007-10-01/150749.html . 
114 Law No. 18.840 of 10 October 1989, amended on 6 November 2014. 
115 The ISP is responsible for controlling the expo rt of psychotropic su bstances (Article 5, 
Decree No. 405/63 of the Ministry of Health). 
116 WTO documents G/AG/N/CHL/32 of  12 May 2010; G/AG/N/CHL/35 of 27 May 2011; G/AG/N/CHL/39 
of 14 May 2012; G/AG/N/CHL/41 of 21 June 2013; and G/AG/N/CHL/45 of 6 August 2014. 
117 Law No. 18.708 of 13 May 1998 (last amended in 2014). 
118 Information provided by the authorities. 
119 Law No. 18.480 of 19 December 1985 (last amended in 2003). 
120 Decree No. 54 of 29 April 2009; Decree No. 69 of 6 April 2010; Decree No. 43 of 28 April 2011; 
Decree No. 40 of 8 May 2012; and Decree No. 41 of 14 June 2013. 
121 Decree No. 473 of the Ministry of Finance of 28 August 2003. WT/TPR/S/315 • Chile 
 
- 71 - 
 
  have 180 days in which to carry out the author ized processing, working or other finishing 
processes and export the final goods obtained, a period which may be extended by the National 
Director of Customs when justified. Over the period 2009-2014, 59 companies took advantage of 
the DATPA. The goods finished in accordance with this regime may be imported into Chile subject 
to payment of all the corresponding duties on the raw materials, without taking into account the 
higher value that may have been obtained as a result of the processing. 
3.127.  In order to promote development in remote provinces and to take advantage of Chile's 
favourable geographical position for trade, export  centres may be set up established for the entry, 
storage and marketing of goods in the provinces of Arica and Parinacota. Chilean goods and foreign goods originating in or coming from other South American countries may go into these centres. As long as the goods remain in an export centre, they are deemed to be abroad and 
therefore no import duties, taxes or other levies are imposed. Sale of domestic goods to these 
centres is deemed to be export. Goods which ente r an export centre may be: exhibited, wrapped, 
unwrapped, labelled, repackaged and marketed. The goods may imported into the rest of Chile, 
subject to the general import regime, or sent back abroad, free of any taxes or levies.
122 
3.2.5  Export financing and guarantees 
3.128.  The Chilean Economic Development Agency (CORFO) is a State agency which provides 
Chilean companies with support and continues to implement a guarantee programme for foreign 
trade. In 2010, the following export credit pr ogrammes were abolished: "Financing for Chilean 
exporters" and "Financing for foreign buyers". 
3.129.  The programme to cover or guarantee bank loans granted to exporters (COBEX) against 
the risk of non-payment, which was implemented by  CORFO, only applied to exporters with annual 
sales of up to US$30 million and those which co uld prove that they had orders from foreign 
buyers. The COBEX was reformed in 2010. Currently, the CORFO foreign trade guarantee (COBEX) 
programme gives a guarantee for loans to finance: investment or working capital for micro, small 
and medium-sized enterprises engaged in foreign tr ade, both as exporters and importers, whereas 
previously it was only given to exporters. The guarantees may be in pesos, euros or dollars or in 
foreign exchange derivative operations (in order to  offset changes in the dollar rate). COBEX also 
guarantees investment projects in indigenous areas. The guarantees cover up to a certain percentage which depends on the scale of the company and the specific features of the transaction. CORFO gives the company a partial guarantee vis-à-vis  the financial institution (bank 
or cooperative association) in order to obtain a loan, and serves as backing if the company fails 
to pay back the loan. The amount of the cred it and the cover provided by CORFO increased 
between 2011 and 2013 (Table 3.8). 
Table 3.8 CORFO foreign trade guaran tee operations (COBEX), 2011-2014 
(US$ thousands) 
Year Number of operations Amount of the credit  Amount of the cover  
2011 1,548 283,852 116,157 
2012 1,865 319,209 129,964 
2013 2,393 326,987 134,007 
2014 2,715 282,099 116,079 
Source: Information provided by the authorities. 
3.130.  The percentage of the guarantee given und er the COBEX framework depends on the 
level of annual sales measured in terms of development units (UF): for microenterprises 
(up to 2,400 UF) and small enterprises (sales of 2,401 UF to 25,000 UF) it is a maximum of 60%; for medium-sized (sales of 25,001 UF to 100,000 UF) and large enterprises (sales of over 100,001 UF up to 450,000 UF) it is 40%. There is, however, a maximum amount 
of cover by company for the COBEX and the investment and working capital programme 
(FOGAIN), namely: 5,000 UF for microenterprises, 7,000 UF for small enterprises; 9,000 UF for medium-sized enterprises; and 23,000 UF for large enterprises. 
                                               
122 DFL No. 1 of 11 September 2001 approving the revised, coordinated and consolidated text of Law 
No. 19.420, latest version of 2 May 2013. WT/TPR/S/315 • Chile 
 
- 72 - 
 
  3.131.  CORFO acts as a second-tier bank, channelling funds through commercial banks, which 
evaluate the projects and lay down specific terms for the loan. Interested parties may obtain a loan directly from the banks or financial institutions which offer this guarantee and request a loan with the CORFO foreign trade guarantee. 
3.132.  The small business credit guarantee fund (FOG APE) is a government fund intended to 
guarantee a fixed percentage of the capital loan, leasing operations and other financing mechanisms offered by public or private financing institutions, inter alia, to exporters that do not 
have guarantees or sufficient guarantees to submit financing applications.
123 Only exporters which 
have exported an f.o.b. value of US$16.7 millio n or less, on average, over the preceding two 
calendar years are eligible for the guarantee. The financing guaranteed by the fund may not usually exceed a total of 3,000 UF, or its equi valent in foreign curre ncy, per enterprise. 
Nevertheless, the Banking Supervisory Authority may authorize a higher amount, which under no 
circumstances may exceed 5,000 UF per exporter or 80% of the balance for each financing operation. These amounts did not change during the period under review. 
3.2.6  Export promotion 
3.133.  The Directorate of Export Promotion (ProChile) in the Ministry of Foreign Affairs remains 
responsible for promoting the export of goods and services. Its role is to facilitate and accompany 
the internationalization of Chilean exporters and those with export potential. It accomplishes this 
through various tools and services provided to exporters through a national network of 15 regional ProChile offices located in the vari ous regions of Chile. It also has an external 
network of 53 trade offices. 
3.134.  ProChile's activities focus on three essential areas: support for the internationalization of 
small, medium-sized and innovative enterprises; participation in international fairs; promotion of specific products through programmes such as: Flavou rs of Chile (support for the export of Chilean 
foods and beverages abroad) and Chilean Wine Tour  (involved in promoting Chilean wine abroad); 
and the creation and launching of sectoral trademar ks, for example, Pisco Chile, Chilean Salmon or 
Fruits from Chile, to make a particular sector well-known. It also offers guidance and training 
services to exporters, undertakes market su rveys and furnishes information on market 
opportunities to potential exporters.
124 
3.135.  ProChile also administers specific cofinanc ing programmes to promote exports, called 
competitive funds.125 These are the Agriculture and Forestry Fund, which finances activities to 
boost the export of fresh and processed foodstuffs , forestry products, products of the sea, etc.; 
the Industries Fund, to promote the export of  non-food manufactures; and the CONTACTChile 
Fund, aimed at the services sector. These F unds have different programmes through which 
ProChile offers non-reimbursable co-financing to exporters in order to finance any activity needed 
to boost exports. The funds available are used accord ing to need and in the light of priorities, so in 
some cases the programmes are not utilized every year. The total annual financing granted by 
ProChile over the period under review ranged  from US$6.5 million in 2010 to US$12.5 million 
in 2012.126 
3.3  Other measures affecting production and trade 
3.3.1  Incentives 
3.136.  Chile implements a series of programmes intended to promote investment and 
employment in remote areas, support micro, small and medium -sized enterprises, promote 
innovation and develop new industries. These programmes grant tax concessions and financing for 
investment and technological development and also support business management. 
                                               
123 Decree Law No. 3.472 of 1980 (last amended on 8 November 2014). Law No. 20.202 
of 3 August 2007, which amended Decree Law No. 3.472 of 1980. 
124 Viewed at: http://www.prochile.gob.cl/herramientas/material-de-apoyo . 
125 These funds are allocated on the basis of a competition. 
126 Information provided by the authorities. WT/TPR/S/315 • Chile 
 
- 73 - 
 
  3.3.1.1  Support for remote areas 
3.137.  Three programmes whose objective is regional development were notified to the WTO as 
subsidies, namely: tax credit for investment in certain provinces, exemption from tax in free zones, and the Fund for the Promotion and Development of Remote Areas.
127 The duration of these 
programmes has been extended, but they did not undergo any major changes during the review 
period and still offer the same advantages. 
3.138.  The aim of the Tax Credit for Investment in the Provinces of Arica and Parinacota 
(Region I) Programme is to promote investment in these provinces.128 It would appear that 
the benefits afforded by this Programme ha ve not changed since the previous review 
in 2009, although its duration has been extended. In 2008, the period given for benefiting from the Programme was until the end of 2011 and the credit could be recovered up to 2034; currently, 
the time-limit for benefiting from this Programme is until the end of 2025 and the credit can be 
recovered up to 2045. Under this Programme, companies investing in these provinces are given an income tax credit. The amount is 30% for investment in Arica, except if the investment project is 
in tourism, in which case the credit is 40%. In Parinacota province, investors receive a 40% credit. 
Only taxpayers whose investment projects exceed 500 UTM monthly are eligible for this Programme. In 2011, the minimum investment values were 2,000 UTM for projects in Arica 
and 1,000 UTM for projects in the Parinacota province. 
3.139.  The Programme of Incentives for the Economic  Development of the Regions of Aysen and 
Magallanes and for the province of Palena (also called the Austral Plan) is still in force.
129 
Until 31 December 2025, enterprises investing in these regions are eligible for an income tax credit 
that may be amortized up to 2045. The percentage of this credit depends on the amount invested. 
Investment projects for a minimum of 200,000 UTM may obtain a tax credit of up to 32% of the value of fixed physical assets. Investments of 200,000 to 200,500 UTM are eligible for a tax credit 
of 15% and larger investments for a 10% tax credit. 
3.140.  The tax and customs regime for the municipaliti es of Porvenir and Primavera in Tierra del 
Fuego province (Region XII Magallanes and Chilean Antarctica), which has been in force 
since 1992, will remain in effect until 2036.
130 This regime allows mining, manufacturing, fishing, 
transport and tourism companies producing goods or services that include a minimum of 25% of local content (including labour) to obtain exemption from income tax, VAT and import duty. 
3.141.  The free zones of Iquique (Region I) and Punta Arenas (Region XII) were set up 
in 1977 and continue to operate.
131 Management companies and firms setting up in these zones 
are exempt from income tax, VAT and import duty and other charges. Any type of activity may be 
carried on in the free zones, but mining, fishing and financial services firms are not eligible for this 
regime. The sale or transfer of goods from the free zone to Chilean customs territory is considered 
to be importation and is therefore subject to payment of tariffs, VAT and other import taxes. 
Persons selling domestic goods to firms in the zones in which inputs have been directly 
incorporated or consumed (such as raw materials, semi-finished articles, components or parts) 
amounting to a c.i.f. value of 10% or mo re of the sales value of the goods may 
also obtain reimbursement of the duties and other customs levies paid when importing the inputs.
132 The preferential regime applied in the Primary Free Zone of Iquique extends 
to manufacturers established in the Alto Hospicio Sector of the Municipality of Iquique 
(Decree Law No. 1.055 of 1975). 
3.142.  Industrial manufacturing companies established in Arica and not taking advantage of the 
free zone regime and producing goods different from the foreign raw materials, parts or 
components used to make them, or whose production process results in an irreversible 
                                               
127 WTO documents G/SCM/N/186/CHL of 27 October 2009; G/SCM/N/220/CHL of 27 July 2011; 
and G/SCM/N/253/CHL of 17 February 2014. 
128 DFL No. 1 of 11 September 2001 approving the revised, coordinated and consolidated text 
of Law No. 19.420 latest text of 2 May 2013. 
129 Law No. 19.606 (Austral Plan) of 4 March 1999 (last amended by Law No. 20.655 
of 21 February 2013). 
130 Law No. 19.149 of 6 July 1992 (last amended in 1992). 
131 Ministry of Finance Decree No. 341 of 1977 and DFL No. 2 of the Ministry of Finance 
of 10 August 2001. 
132 Law No. 18.708 of 13 May 1988 (last amended in 1991). WT/TPR/S/315 • Chile 
 
- 74 - 
 
  transformation of the foreign raw materials, parts or components may sell the finished goods 
outside Region I or Region XV in the rest of Chile and, only up to 31 December 2025, may request reimbursement of the duties, taxes and other cust oms levies paid when importing the foreign raw 
materials, parts or components utilized.
133 
3.143.  Extension free zones have been created around the free zones of Iquique and Punta 
Arenas, that is to say regions adjoining the delimited border of the free zone. The extension free zones were set up in order to be able to import duty free goods that could not be imported free of 
duty from the free zones of Iquique and Punta Arenas.
134 The Ministry of the Economy draws up a 
list, which may be amended, of the goods which may not be imported duty free from free zones. Goods not appearing on this list may be imported from the free zone in order to be used or consumed in the extension free zones.
135 The import of foreign goods (including those produced in 
Chilean free zones) into extension free zones is subject to a flat-rate tax of 0.53% of their 
c.i.f. value. This tax is used as a credit against the taxes and tariffs to be paid on the import of the goods in question into the rest of Chile.
136 
3.144.  In addition to the aforementioned free zones, there is also an industrial free zone that 
produces inputs, components and spare parts for the mining industry established in the municipality of Tocopilla (Region II), under a regime in force until 2016 or 2021.
137 Companies 
established in this zone are exempt from payment of income tax and imported goods do not have 
to pay duties, taxes or other levies. 
3.145.  As well as the tax incentives mentioned above, Chile has other support programmes 
intended to foster the development of deprived regions in the far north and south of the country 
and to boost employment. This is the case for the Fund for the Promotion and Development of 
Remote Areas, which provides non-reimbursable financing to small and medium-sized enterprises interested in investing in these regions.
138 The Fund only provides financing for small and 
medium-sized producers of goods and services in the construction, machinery, equipment, special 
animal feed and small-scale fishing sectors. The annual amount of investment may not exceed 50,000 UF and between 2012 and 2025 inclusive, th e funds provided may not exceed 20% of the 
cost of the investment. The Fund is determined for one year at a time and approved each year in 
the Finance Law. 
3.146.  In order to boost employment in regions in the far north (Regions I and XV) and the far 
south (Regions X, XI and XII), employers or contractors may receive a subsidy equivalent 
to 17% of the taxable remuneration, up to a maximum of Ch$182,000 per month for each 
employee over the period 2012-2025.
139 
3.147.  With the aim of enhancing competitiveness and diversifying production in Chile, 
CORFO implements a number of programmes to promote investment, innovation and training of 
human resources. These include the programme on bonuses for the purchase of capital goods for remote regions and the provinces of Palena and Chiloé. Under this programme, financing is given 
to small or medium-sized investors, producers of goods and services, which purchase capital 
goods, with sales not exceeding 40,000 UF, for investment or re-investment projects, while investment must not exceed 50,000 UF.
140 Likewise, under the support programme for investment 
in production for recovery (IPRO), COFRO cofinances projects to promote investment in the 
services sector. With this line of credit, CORFO finances up to Ch$30 million of the cost of the 
                                               
133 DFL No. 1 of 11 September 2001 approving the revised, coordinated and consolidated text of Law 
No. 19.420, latest text of 2 May 2013, and Article 27 of DFL No. 2 approving the revised, coordinated and consolidated text of DFL No. 341 of 1977 of the Ministry of Finance on free zones, last amended by Law No. 20.655 of 1 February 2013. 
134 Since 2004, the extension free zone of Punta Arenas has included the Aysen region for capital goods 
(Law No. 19.946 of 5 May 2004). 
135 Article 21 of DFL No. 2, approving the revised, coordinated and consolidated text of DFL No. 341 
of 1977 of the Ministry of Finance on free zones, last amended by Law No. 20.655 of 1 February 2013. 
136 Article 11 of Law No. 18.211 of 23 March 1983 (last amended on 2 March 2015). 
137 Law No. 19.709 of 31 January 2001 and Law No. 20.333 of 4 February 2009. 
138 Decree Law No. 3.529 of 6 December 1980 (last amended in 2013). 
139 Law No. 19.853 of 11 February 2003 (last amended in 2013). 
140 DFL No. 15 Bonuses for the purchase of ca pital goods for remote zones. Viewed at: 
http://www.corfo.cl/programas-y-concursos/programas/ dfl-15-bonificacion-a-compr a-de-bienes-de-capital-
para-zonas-extremas . WT/TPR/S/315 • Chile 
 
- 75 - 
 
  project or up to Ch$40 million for projects asso ciated with CORFO's innovation or strategic 
programmes (i.e. programmes to boost competitiveness in a particular sector).141 
3.3.1.2  Support for micro, small and medium-sized enterprises 
3.148.  Chile has several business support programmes, most of them administered by CORFO. 
The aim of these programmes is to support the development of micro, small and medium-sized 
enterprises. The definition of such enterprises according to size is the same for all sectors and programmes.
142 The programmes offered by CORFO are very varied and are introduced, removed 
or modified in response to the needs of the mark et. Many of them, however, offer financing to set 
up a company or a commercial activity, innovate, improve management, develop supplier networks, encourage the association of compan ies and boost the creation and transfer of 
technology (Table A3.4). 
3.149.  In addition to the CORFO programmes, micro and small enterprises which do not have 
sufficient surety to seek a loan from a commercial bank may obtain guarantees through the FOGAPE, which was created in 1980.
143 This is a government fund intended to guarantee a 
fixed percentage of loans, leasing operations and other financing mechanisms  offered by public or 
private financing institutions to micro and small enterprises that do not have guarantees or sufficient guarantees to submit financing applications.
144 The financing guaranteed by the Fund 
may not usually exceed 3,000 to 5,000 UF or its equivalent in foreign currency per enterprise. For 
financing exceeding 3,000 UF, however, the amount of the guarantee falls from 80% to 50%. Pursuant to the law, the Banking Supervisory Authority may increase the maximum amount to 5,000 UF. During the period under review, two transitional changes were made to the 
FOGAPE which have enabled larger firms to take advantage of the Fund.
145 In 2014, there 
were 48,753 FOGAPE operations amounting to 28 million UF and total guarantees of 22 million UF. The services sector, especially trade, transp ort and communications (63.2%), followed by 
construction (15.0%) and agriculture and fishin g (14.2%) made the greatest use of the Fund.
146 
3.150.  Moreover, through the Investment Guaran tee Fund (FOGAIN) complementary risk 
coverage is given for loan operations, including financial leasing. The purpose of this programme is 
to provide coverage for financial intermediaries which grant long-term financing to companies that 
are not covered by the FOGAPE (Table A3.4). 
3.3.1.3   Other programmes 
3.151.  CORFO also provides financing for research and development projects to any type of 
company whose purpose is to promote innovation and transfer of technology (Table A3.4). 
In 2008, a tax incentive was created for investment in research and development.147 This incentive 
is also administered by CORFO and consists of a credit against first category income tax, 
corresponding to 35% of payments related to research and development contracts certified by 
CORFO and a tax rebate linked to the remaining 65% of the amount invested, which may be deducted as a necessary cost in order to reduce the credit.
148 
3.152.  Furthermore, CORFO administers a number of support programmes for specific sectors 
such as fishing, mining and renewable energy (Table A3.4). For example, the 2012-2030 National Energy Strategy makes support for renewable en ergy a priority and, with this in mind, 
                                               
141 Support programme for investment in production for recovery (IPR O) - Antofagasta region. Viewed 
at: http://www.corfo.cl/programas-y-concursos/programas/programa-de-apoyo-a-la-inversion-productiva-
para-la-reactivacion-ipro--region-de-antofagasta . 
142 A micro-enterprise is considered to be a comp any whose net sales range from 0 to 2,400 UF; for a 
small enterprise net sales must amount to 2,400 to 25,000 UF; a medium-sized enterprise has net sales ranging from 25,000 to 100,000 UF; and large enterprises are those whose sales exceed 100,000 UF. For further information view online at: http://www.sii.cl/estadisticas/empresas_tamano_ventas.htm . 
143 Decree Law No. 3.472 of 1980. 
144 Idem. (last amended on 8 November 2014). 
145 Law No. 20.318 of 23 December 2009. 
146 Viewed at: http://www.fogape.cl/upload/DOC/Presentación resultados Octubre 2012(1).pdf  and 
information provided by the authorities. 
147 Law No. 20.241 of 19 January 2008. 
148 Viewed at: http://www.corfo.cl/programas-y-concursos/programas/incentivo-tributario-a-la-
inversion-privada-en-investigacion-y-desarrollo . WT/TPR/S/315 • Chile 
 
- 76 - 
 
  the Ministry of Energy, through CORFO, is organizing a competition for cofinancing the 
construction of a concentrated solar power plant. As a result of this competition, in which both Chilean and foreign companies may participate, a subsidy of up to US$20 million will be granted.
149 
3.153.  Chile also has support programmes for agriculture, which have been notified to the 
WTO Secretariat (Section 4).150 
3.3.2  Competition policy and price control 
3.3.2.1  Overview 
3.154.  During the period under review, Chile introduced legal and administrative measures to 
reinforce the activity and powers of its competition bodies, such as the reform of the regulatory-institutional framework for competition, including the amendments introduced by 
Law No. 20.361 of 13 July 2009. Despite this progress, further efforts are needed to achieve levels 
of implementation consistent with the degree of opening and liberalization of its economy. This is particularly important to ensure that this process, in a relatively small market such as Chile's, does 
not result in the consolidation of monopolies and smother competition. For the time being, Chile's 
competition policy is designed to prevent abuse of a dominant market position, but not concentration as such, and action by the competent bodies has continued to focus on combating 
international cartels, where they have obtained  a large measure of success. Nevertheless, Chile 
still lacks legislation requiring pre-notification of mergers and acquisitions and their examination depends on action by the National Economic Prosecutor's Office (FNE) and its detection capability, and therefore some important transactions may not be controlled. 
3.155.  Chile's competition policy focuses on economic impact, especially market power. If a case 
of market power is identified, the potential gain s in terms of efficiency are examined, but where 
such power is not found to exist the potential anti-competitive effects are not usually investigated. 
According to the OECD, however, the legislation do es not provide the means to identify and assess 
the analytical factors based on economic aspects or an overall procedure to define markets.
151 
There is neither presumption of a dominant position as an indicator of domination nor a threshold 
whereby to evaluate market concentration, nor any reference to barriers to entry nor an indication 
of the scope of an efficiency argument. To make good these gaps, internal guidelines have been 
published (see below), although the competition authorities are not obliged to follow their guidelines or to take account of precedents. 
3.3.2.2  Regulatory and institutional framework 
3.156.  The principal bodies in charge of monitoring  implementation and compliance with Chile's 
competition regulations are the FNE and the Competition Tribunal (TDLC). The FNE acts as a 
specialized service for conducting investigations concerning free competition, while the TDLC is the 
jurisdictional body responsible for resolving any disputes arising. 
3.157.  The FNE was created by Decree Law No. 211 and is the national authority responsible for 
safeguarding free competition. As such, it safeguards and promotes competition in all markets and 
production sectors of Chile's economy. It is a de centralized government service with its own legal 
status and its own resources, independent of but nevertheless subject to oversight by the 
President of the Republic through the MEFT. The Na tional Economic Prosecutor is the director of 
the service and not only heads the Office but also represents the FNE at the legal and 
extrajudicial levels.
152 
3.158.  The FNE seeks to safeguard the efficient operation of markets for goods and services and 
therefore investigates any fact, act or agreement which prevents, restricts or distorts free 
                                               
149 Viewed at: http://www.corfo.cl/programas-y-conc ursos/programas/concurso-planta-de-
concentracion-solar-de-potencia-csp . 
150 WTO documents G/AG/N/CHL/34 of 27 May 2011;  G/AG/N/CHL/37 of 4 May 2012; G/AG/N/CHL/40 
of 10 June 2013; and G/AG/N/CHL/43 of 6 August 2014. 
151 OECD, Competition Law and Policy in Chile, 2010 . Viewed at: 
http://www.oecd.org/daf/competition/sectors/47950954.pdf . 
152 Online information from the FNE viewed at: http://www.fne.gob.cl . WT/TPR/S/315 • Chile 
 
- 77 - 
 
  competition or tends to have such an effect. It may initiate investigations at the request of a party 
or ex officio. It combats collusory practices or abuse of a monopolistic position and examines mergers which affect or might affect the efficient functioning of markets or consumers' well-being. 
Following its investigations, when it considers necessary, the FNE may request the TLDC to adopt 
the appropriate measures or penalties to prevent or remedy the anti-competitive effects of the 
conduct or facts investigated. The FNE also plays an advisory role and draws up technical reports at the request of the TDLC or as part of its ow n promotion activities. In cases examined by the 
TDLC and the courts, the FNE may act as a part y, representing the general public economic 
interest. It may also defend or contest rulings by the TDLC before the Supreme Court of Justice. It is not empowered to seek information from individuals and may only make use of public 
information in its investigations. 
3.159.  At the international level, the FNE plays an active part in various international forums 
dealing with competition policies, for example the OECD Competition Committee, the International Competition Network (ICN), the United Nations Conference on Trade and Development (UNCTAD) 
and the APEC Competition Policy and Law Group. 
3.160.  The TDLC is a special and independent colle giate court which deals exclusively with 
matters relating to free competition.
153 Its task is to prevent, remedy and penalize acts contrary to 
free competition, but it remains subject to oversi ght by the Supreme Court. The TDLC was created 
by Law No. 19.911 of 14 November 2003 and started to operate on 13 May 2004. It initiates procedures upon request by the National Economic Prosecutor or by any individual person using the relevant notifications or applications. The TDLC may initiate procedures ex officio. 
3.161.  The TDLC is empowered to rule on contentious proceedings concerning acts or facts that 
may violate the Law and can adopt the necessary measures or penalties to prevent or remedy their anti-competitive effects. The measures av ailable to the TDLC include the amendment or 
termination of contracts, orders to modify anti-c ompetitive conduct, the dissolution of companies 
and the imposition of fines. Appeals against decisions by the TDLC may be made to the 
Supreme Court of Justice. The TDLC may also be  consulted in the course of non-contentious 
proceedings regarding acquisitions and mergers and has the authority to lay down general rules on 
competition for a particular sector of the market and to propose to the President of the Republic 
amendments to laws or regulations which it considers contrary to free competition. 
3.162.  Decree Law No. 211 of 1973 is the principal legal instrument dealing with competition 
policy in Chile. It has been amended on various occasions over the years, the most important 
amendment having been introduced by Law No. 19.911 of 14 November 2003. Its current text was revised, coordinated and consolidated by DFL No. 1 of 2005 of the Ministry of the Economy, and is 
known as the Competition Law, the most recent text being that of 10 October 2009, which includes 
the amendments introduced by Law No. 20.361 of 13 July 2009. These amendments reinforced the 
investigative powers given to the FNE and introduced new powers to combat cartels, for example 
the possibility of granting immunity or clemency to any who provide evidence on the existence of 
cartels and the authority to conduct searches. The TDLC was also given greater independence and the express authority to impose corrective measures ex officio. The maximum fines for offences were also increased and changes to the scope of offences introduced. 
3.163.  The Competition Law is relatively simple and has a single general provision which contains 
the fundamental rules on conduct that affects co mpetition. As noted by the OECD, even though 
Chile's Government regards the principal goal of its competition law as being to promote economic 
efficiency, with the expectation that in the long run this maximizes consumer welfare, the Law 
does not state this goal explicitly, or indeed any other.
154 The Law defines as unlawful and 
anti-competitive "any act or agreement that prevents, restricts or hinders free competition, or 
tends to produce such effects", including practices such as price fixing, limiting production, 
assigning market quotas or zones, abuse of a dominant position and predatory or unfair competition practices whose object is to attain, maintain or increase a dominant position. 
                                               
153 Online information from the TDLC viewed at: 
http://www.tdlc.cl/Portal.Base/Web/VerContenido.aspx?ID=696&GUID . It is composed of three lawyers and 
two economists, appointed by the President, the Supreme Court of Justice and the Co uncil of the Central Bank, 
following a public competition. 
154 OECD, Competition Law and Policy in Chile, 2010 . Viewed at: 
http://www.oecd.org/daf/competition/sectors/47950954.pdf . WT/TPR/S/315 • Chile 
 
- 78 - 
 
  Market concentration is not considered to be an anti-competitive practice in itself, so mergers do 
not require prior notification and no limits are set on market share. Companies are free to engage in market concentration provided that this does not prevent, restrict or hinder competition or tend to produce such effects. 
3.164.  The Competition Law is universal, that is to say it applies to all Chilean or foreign 
individuals or companies, and to the State itself. It does not establish any immunity or exclusion and applies to foreign trade activities to the extent that they affect competition in the 
Chilean market. 
3.165.  The legislation on safeguarding competition also includes Law No. 20.169 of 2007, or Law 
regulating Unfair Competition. The Law defines as unfair competition conduct that is not covered by other legal provisions, including free-riding on the reputation of third parties, disseminating 
false information on the characteristics or price of goods or services offered, defamation of 
third parties and the misuse of legal action in order to hamper the operations of a competitor. The competition authorities only examine unfair practices whose aim is to achieve, maintain or 
increase a dominant position. Proceedings against other practices have to be brought before the 
civil courts, which are empowered to take action against acts of unfair competition, including cessation or prohibition of the act, a declaratory rulin g that it is an unfair act, the elimination of its 
effects and compensation for damage. The courts forward their ruling to the National Economic 
Prosecutor (FNE), who may request the TDLC to impose a fine. In addition, the regulatory framework for safeguarding competition includes the cooperation agreements signed by the FNE with competition authorities in 10 countries, as well as the provisions in the RTAs signed by 
Chile, 13 of which include a chapter on competition issues, with varying degrees of detail 
and coverage. 
3.3.2.3  Enforcement 
3.166.  The FNE has responsibility for investigating anti-competitive conduct, either following a 
complaint or ex officio. There are several stages in an investigation (admissibility, conduct of the investigation, examination and collection of background information) and its termination leads to 
one of the following decisions by the National Economic Prosecutor: submission of requests 
(petitions) to the TDLC; consultation procedures at the TDLC (non-contentious proceedings); agreement or conciliation; extrajudicial agreem ent forwarded to the TDLC; or termination or 
closing of the investigation following cessation of the conduct. The FNE does not have the authority 
to impose fines or order cessation of practices, but must turn to the TDLC or the Supreme Court 
for this. In 2013, as in previous years, the FNE 's efforts continued to focus on improving the 
investigation procedure and stepping up action to combat cartels. 
3.167.  Between 2009 and the end of July 2014, the FNE  forwarded to the TDLC and the Supreme 
Court a total of 67 requests regarding cases of restriction of free competition in various sectors. The investigations concerned several forms of conduct, for which three specialized departments 
were created during this period: cartels, unilateral abuse and mergers.
155 
3.168.  In recent years, there has been an increase in the FNE's investigations, particularly 
those ex officio. Between 2010 and 2012, the FNE opened 62 new cases concerning violations of the Competition Law. In 2013, it opened 47 new cases of possible violations 
of Decree Law No. 211, 31 of which were initiated ex officio and 16 following complaints. It also 
continued with 50 cases in all and closed 12 investigations pending from 2010, 2011 and 2012. In 2013, it forwarded five requests to the TD LC (relating to pharmaceuticals, brewing and 
                                               
155 To illustrate this breakdown, during the review period cartels in the following areas were examined: 
compressors, poultry market, associatio n of gynaecologists, buses and asphal t. Abuse of a dominant position 
on the part of a number of companies was also investigated, including some State-owned companies, in the goods and services sectors: Unilever, CCU (beer), St ate railway company, Santia go Chamber of Commerce, 
Andina and Coca-Cola, Claro S.A., Telefónica Móvil S.A. Lastly, mergers such as: LAN/TAM, Abbott/CFR 
(pharmaceutical industry), Nestlé/SOPROLE (milk), Nestlé/Pfizer (foodstuffs), OTT television channels, Oben Holding/BOPP Chile and Pack Film (cable television) were examined. WT/TPR/S/315 • Chile 
 
- 79 - 
 
  professional services, inter alia ); three consultations156; two extra-judicial agreements; 
five conciliations; and two resolutions on closure of the investigation following cessation of the conduct. At 31 December 2013, the TDLC was examining nine requests from the FNE. 
3.169.  In a case relating to cartels in the poultry market and for the first time since it was set up, 
in September 2014 the TDLC's ruling ordered the di ssolution of a business association: the Poultry 
Producers' Association, which brought together these companies and promoted and coordinated agreement among them. The TDLC accepted the request by the FNE submitted at the end of 2011 
and imposed on the poultry firms Agrosuper, Ariztía and Don Pollo fines totalling around 
US$61 million for having joined a cartel which had controlled production quotas for poultry meat in Chile's poultry industry for at least ten years. For the first time since its creation, the TDLC imposed on two of these three companies the high est fine provided by Decree Law No. 211, which 
has been 30,000 Annual Tax Units UTA) since 2009. At the same time, the TDLC determined that 
Agrosuper must put up for a legal opinion any merger it wished to carry out in the poultry market. 
3.170.  The case against the poultry firms was initiated following a request from the FNE in 
November 2011. Prior to that, the FNE had undertaken an investigation which found that the 
accused firms had for at least a decade applied an agreement to limit their production and so control the volumes produced and put on the domestic market, allocating production and 
marketing quotas. The FNE calculated that the econ omic injury caused by this practice amounted 
to a minimum of US$1.5 billion. In this case, the FNE  for the first time utilized the intrusive powers 
it had been given by law since 2009, in order to search the premises and confiscate documents so as to obtain information during the investigation. 
3.171.  The TDLC has the authority to impose preventive measures to halt any merger. Over the 
period January 2009 to 30 September 2014, the TDLC initiated a total of 103 contentious proceedings. The busiest year was 2009, with 25 cases. 
3.172.  Of the contentious cases examined by th e TDLC during the period under review, 
about 40% of the cases judged concerned abuse of a dominant position, 19% collusion, 13% unfair competition, and the remainder related to other practices. The markets most affected 
by unfair competition were telecommunications, transport, pharmaceuticals and fuels (Chart 3.2). 
                                               
156 Consultation by the FNE requesting the issuing of  rules concerning free entr y of telecommunications 
companies into buildings and condominiums, submitted on 27 June 2013; consultation by the FNE on the 
proposal to issue legal requirements and/or regulations to regulate transf er of ownership of bulk liquid gas 
tanks, submitted on 3 December 2013; and consultation  by the FNE regarding joint action by banks and 
financial institutions in Transbank S.A., submitted on 27 December 2013. WT/TPR/S/315 • Chile 
 
- 80 - 
 
  Chart 3.2 Contentious proceedings: conduc t recognized and judged by the TDLC 
at 30 September 2014 
Contentious cases - conduct recognized 
by the TDLC
Predatory pricing
3.0%
Act of 
authority
11.0%Abuse of a 
dominant 
position
43.0%
Collusion
14.0%Merger
1.0%
Barriers
to entry
7.0%
Food
8.0%
Pharmaceuticals
5.0%
Distribution
9.0%
Telecommunications
17.0%Welfare
4.0%
Transport
7.0%Othera
35.0%Unfair 
competition
12.0%
Fuels
6.0%Non-compliance 
with a resolution
7.0%Refusal of 
contract
2.0%
Concessions
9.0%Contentious cases - conduct
judged by the TDLC
Practices
MarketsAbuse of a 
dominant 
position
40.0%
Act of 
authority
10.0%Barriers to 
entry
7.0%Collusion
19.0%Unfair 
competition
13.0%Non-compliance 
with a resolution
5.0%Predatory 
pricing
3.0%Refusal of 
contract
2.0%
Food
4.0%Fuels
7.0%
Concessions
5.0%
Pharmaceuticals
9.0%
Distribution
6.0%
Telecommunications
12.0%
Transport
9.0%Welfare
4.0%Othera
44.0%
 
 
a Other mainly includes financial services, port  services, clothing and footwear, education, 
entertainment, toys, the electrical sector, health, the airport sector, etc. 
Source: TDLC. WT/TPR/S/315 • Chile 
 
- 81 - 
 
  3.173.  The average duration of contentious proceedi ngs resulting in a ruling was 673 calendar 
days (1¾ years) in 2013, lower than the average fo r 2012 (750 days), but slightly higher than the 
historical average (629 days).157 
3.3.2.4  Mergers 
3.174.  Control of mergers is not explicitly addressed in Chilean law; there are no specific 
provisions in the Competition Law and no pre-notification or notification requirement for a merger. This type of operation has been controlled through a semi-voluntary de facto system of notification 
in which mergers may be brought before the TDLC by those involved, by the FNE or by 
third parties, in the form of contentious or non-contentious proceedings, either before or after the merger has occurred. The OECD considers that the absence of a legal framework may give rise to 
legality and consistency issues and expose the system to legal uncertainty for enforcers, 
businesses and ultimately for consumers and society. The OECD therefore suggests that, as a 
priority, Chile's Competition Law should establish a formal and binding merger control regime.
158 
3.175.  The authorities have sought to make good th e absence of binding regulations by issuing 
operational guidelines. In this connection, in October 2006, the FNE published internal guidelines 
on the review of horizontal mergers, which clarified the criteria used to evaluate planned or completed mergers, at the request of either third pa rties, the TDLC or ex of ficio. The guidelines set 
a maximum time-limit of 60 days for the FNE to review mergers. In March 2009, the TDLC 
adopted Resolution No. 12, which determined the relevant information to be submitted for such a review. During the period under review, the FNE sought to reinforce this policy, issuing new 
internal guidelines for the examination of mergers in October 2012 and guidelines for the review of 
vertical restrictions in June 2014. According to these guidelines, vertical restrictions as such are 
not forbidden, allowing that they may be pro-competition if they raise assignative and production efficiency and enable buyers and sellers to lower their transaction costs, optimize investment and 
eliminate price distortions which might arise from the prevalence of externalities. Nevertheless, 
it is admitted that vertical restrictions may also weaken the intensity of competition within the same vertical structure (intra-product competition) or among rival vertical structures 
(inter-product competition). In this respect, even though they may in the end be efficient for 
parties applying them, vertical restrictions can be undesirable from the standpoint of social welfare. The FNE therefore decided that the conf ormity of a vertical restriction with free 
competition regulations would depend on the respective weighting of the efficiencies, the risks and 
the anti-competitive effects inherent in it.
159 
3.176.  Despite the absence of legislation, the competition authorities continued to undertake 
several investigations into mergers and acquisitions during the period under review, mostly in the 
transport, telecommunications, retail sale, electricity, financial and health services sectors. 
The majority of these investigations, however, we re undertaken ex officio by the FNE and were not 
referred to the TDLC, so they are not binding. A merger may be reviewed by the TDLC, through 
either a consultation procedure or contentious proceedings. The consultation must be initiated by 
the parties, the FNE or third parties with a legi timate interest in the merger. The TDLC may not 
initiate a review ex officio. The consultation proc edure is governed by Articles 18(2) and 31 of the 
Competition Law, as well as the TDLC Resolution  on mergers. Article 18(2) empowers the TDLC to 
determine the conditions to be met by mergers so that they comply with the Competition Law.160 
The consultation procedure may take place at any time, either before or after the merger. If it takes place before, it is of a suspensive nature, pursuant to the TDLC's Resolution on parallel 
procedure. If it takes place afterwards, the consultation allows a non-contentious review. 
3.177.  Since it was set up in 2004 until the end of  2014, the TDLC had only issued rulings 
in 18 cases of mergers, resulting from 14 consultations, 1 contentious procedure and 3 procedures 
                                               
157 Audit Report by the President of the Competition Tribunal, Don Tomás Menchaca Olivares, 
12 May 2014. Viewed at: http://www.tdlc.cl/UserFiles/P0001/File/CUENTAS PUBLICAS TDLC/Cuenta Pblica 
2014.pdf . 
158 OECD (2014), Assessment of Merger Control in Chile , 2010. Viewed at: 
http://www.oecd.org.daf/competition/chile-merger-control-2014-en.pdf . 
159 FNE (2014), Guide for the Examination of  Vertical Restrictions, June 2014. Viewed at: 
http://www.fne.gob.cl/wp-content/uploads/2014/06/Gu%C3%ADa-Restricciones-Verticales.pdf . 
160 In the context of a merger, this provision has been interpreted as allowing the TDLC to approve the 
operation, on certain terms, or to  reject it if the terms are not sufficient to prevent the emergence of 
anti-competitive risks. WT/TPR/S/315 • Chile 
 
- 82 - 
 
  for extrajudicial approval of the agreement. Two of these operations were submitted for 
consultation ex post by the parties; in both cases, the TDLC decided that any future operation 
involving the same companies should be notified in advance. 
3.178.  One of the most important mergers examined by  the TDLC during the period under review 
was that between the Chilean airline LAN and the Br azilian airline TAM, whic h was approved by the 
TDLC in September 2011, subject to a number of conditions. The airlines lodged an appeal with the Supreme Court against the TDLC's decision, but it was rejected. The merger between 
LAN and TAM and the subsequent creation of  the new airline LATM came into effect 
in June 2012 (Section 4.5.3.1). 
3.179.  A study carried out by the OECD in 2014 concluded that Chile's current regime for 
controlling mergers lacks transparency, legal cert ainty and predictability, which are key elements 
for an effective merger control system. It indicates that the main reasons for Chile's current 
situation are: the absence of specific legal provisions on merger control, the lack of clear jurisdictional criteria, the reliance on general antitrust procedures which were not designed for 
merger control purposes, and the absence of streamlined merger review powers between the FNE 
and the TDLC.
161 
3.180.  Noting that merger control constitutes an essential component of an effective competition 
system, the OECD report analyses these issues and suggests possible ways forward for 
consideration by Chile for the adoption of a more  effective and transparent merger control regime. 
The first recommendation is that merger control should be included in Chile's Competition Law and form part of its competition policy. The second is to define what transactions are subject to merger 
control and to establish a clear merger notification system, for which Chile should identify 
appropriate notification thresholds. The third recommendation is that merger review powers should be clearly assigned by law to a competent authority (currently both the FNE and the TDLC 
undertake this task) so that the merger review procedure is efficient, transparent, predictable and 
collaborative . The fourth recommendation is that merger control rules include a clear substantive 
test for reviewing mergers under which the impact of the merger on competition can be better 
assessed. The fifth recommendation is that sanctions or constraint measures be introduced for the 
infringement of statutory obligations and that these sanctions be distinct from sanctions for anticompetitive conduct in general (for example, the introduction of criminal liability).
162 
3.3.2.5  Price control 
3.181.  The Chilean State does not have any overall power to regulate or control the prices of 
goods or services. Price regulation is based solely on the provisions in the Competition Law or some of the laws governing public services. In general, this is the case for those activities where it 
is deemed that there is a natural monopoly in order to avoid abuse of a dominant position by 
private operators. These sectors include local basic telephony, electricity, and drinking water and sewage services. The maximum rates which drinking water and wastewater services companies 
may charge are fixed by the Sanitary Services Supe rvisory Authority (SSIS). The fixing of rates for 
basic telephony and electricity are discussed in Section 4. 
3.3.3  State trading, State-owned en terprises and privatization 
3.182.  Chile has notified the WTO that Comercializadora de Trigo S.A. (COTRISA) is the only 
State trading enterprise.
163 It is a public limited company, created by public deed 
on 16 November 1986, whose purpose is to buy, sell, package, store, transport, distribute, deliver and trade, on its own account or on behalf of others, all types and grades of wheat and other 
cereals, and in general, to carry out all transactions that may be necessary or conducive to its 
corporate purpose. COTRISA's corporate purpose al lows it to operate mainly with the following 
products: wheat (HS code 1001 and subheading s); maize (HS code 1005 and subheadings); 
rice (HS code 1006 and subheadings); and other cere als (generally tariff headings in Chapter 10). 
The authorities have indicated that COTRISA operates in such a way as to mitigate the distortions that are at the root of the current structural flaws in the cereals markets, wheat in particular, 
                                               
161 OECD (2014), Assessment of Merger Control in Chile . Viewed at: 
http://www.oecd.org.daf/competition/chile-merger-control-2014-en.pdf.  
162 Idem.  
163 WTO document G/STR/N/15/CHL of 25 September 2014. WT/TPR/S/315 • Chile 
 
- 83 - 
 
  and that undermine the negotiating power of the sm all producers. The duration of the company is 
indefinite. COTRISA enjoys no special privileges and is governed by the Law on Public Limited Companies.
164 
3.183.  COTRISA implements the Wheat Purchase Programme (PCT), a government policy of 
support for the agricultural sector whose aim is to establish an equitable link between the import 
price of wheat and the domestic market price. COTRISA also provides paid grain packaging and 
storage services, as well as grain quality certification. COTRISA is authorized to engage in foreign 
trade transactions, but cannot establish and/or determine import/export levels or prices. 
By September 2014, COTRISA had only exported once, with export prices being determined at public auction. COTRISA has so far no t engaged in any import transactions. 
3.184.  According to Chile's notification to the WTO, COTRISA's strategic objectives for the period 
2014-2018 are: (a) to draw up and implement an investment plan for silo installations; 
(b) to develop the capacity of the COTRISA Central Laboratory so that it can operate as an arbitration laboratory for both maize and wheat
165; (c) to enhance the transparency of commercial 
decisions pertaining to the cereals markets; (d) to redefine the PCT for wheat for small producers; 
and (e) to seek to maintain the current value of the COTRISA financial fund. 
3.185.  Pursuant to the Constitution, in Chile the creation of State-owned enterprises or State 
participation, whether as a majority or minority shareholder, in the management or ownership of 
companies (firms with State participation) must be authorized by law adopted by a qualified quorum. State-owned enterprises are subject to the regulations applicable to private firms and oversight by the competent State agencies (Comptroller's Office, Supervisory Authorities, 
inter alia) . There is no special law setting out specific procedures for creating a State-owned 
enterprise. The law creating an enterprise determin es the specific procedures for its establishment. 
3.186.  At the end of 2014, there were 32 State-owned enterprises in Chile (Table 3.9), 3 of which 
were in the process of being liquidated. Some of them play a key role in Chile's economy, for 
example, the National Copper Corporation (CODEL CO), the world's largest copper producer. Other 
important entities include the State Bank of Chile, the National Petroleum Company (ENAP) and 
the National Mining Company (ENAMI). Other comp anies owned by the State or in which it has a 
share are active in sectors such as port infrastructure, urban and interurban land transport, postal services, communication media, defence, gaming, free zones and supplies for remote areas. Most of the port management companies have been put out to concession. Of the 32 companies in the 
State sector (State-owned enterprises created by law or companies with State 
participation), 22 are overseen by the State-owned enterprises system (SEP, www.sepchile.cl ).
166 
Since February 1997, the SEP, a CORFO committee, has been the technical body whose role it is to 
represent the interests of the State in companies in which it is a partner or shareholder or which it 
owns. The SEP appoints the boards and oversees  the management of these companies with the 
overall objective of raising to the maximum the value of all State-owned enterprises although 
some of them have the non-economic objective of social return. 
                                               
164 Idem.  
165 Law No. 20.656 of 2 February 2013, which governs commercial transactions in agricultural products, 
makes it mandatory to analyse samples. The special re gulations on wheat, adopted in October 2014 within the 
framework of Law No. 20.656, cover the form in which the quality of wheat bought and sold must be analysed 
and determined and include the methodologies to be us ed by calibration laboratories for their work. The 
legislation gives wheat producers an arbitration system  in case of disagreement concerning the quality 
analyses carried out. Arbitration is the responsibility of  arbitrating testing laboratori es accredited in a public 
register kept by the SAG, although Chile does not at present have such laboratories, except COTRISA's Central 
Laboratory for analysis of grain qual ity, which has taken on this task. 
166 The companies administered by the SEP are: EFE, Empresa de Correos de Chil e, Empresas Portuarias 
de Arica, Antofagasta, Coquimbo, Iquique, Valparaíso, San Antonio, Talcahuano-San Vicente, Puerto Montt, 
Chacabuco, and Austral, ECONSSA, Empr esa de Servicios Sanitarios Lago Peñuelas S.A., METRO S.A., ZOFRI, 
Polla Chilena de Beneficencia S.A., COTRISA, Sociedad Agrícola Sacor SpA, being liquidated, SASIPA, Casa de 
Moneda de Chile S.A. and ENACAR , being liquidated. Viewed at: 
http://www.sepchile.cl/fileadmin/ArchivosPortal/SepChile/Documentos/Memorias/MemoriaSEP2013/empresas.
html. WT/TPR/S/315 • Chile 
 
- 84 - 
 
  Table 3.9 List of State-owne d enterprises, December 2014 
Enterprise Ownership structure (%) 
Corporación Nacional del Cobre de Chile (CODELCO)  100% Treasury  
Empresa Nacional de Minería (ENAMI) 100% Treasury 
Empresa Nacional del Petróleo (ENAP) 100% Treasury 
Televisión Nacional de Chile (TVN) 100% Treasury 
Banco Estado de Chile (BECH) 100% Treasury 
Astilleros y Maestranzas de la Armada (ASMAR) 100% Treasury 
Empresa Nacional de Aeronáutica (ENAER) 100% Treasury 
Fábrica y Maestranzas del Ejército (FAMAE) 100% Treasury 
Puerto Madero Impresores S.A. Treasury 69.26% and Private 30.74% 
Empresa de los Ferrocarriles del Estado (EFE) 100% Treasury 
Empresa de Correos de Chile 100% Treasury 
Empresa Portuaria Arica (under a concession) 100% Treasury 
Empresa Portuaria Iquique (under a concession) 100% Treasury 
Empresa Portuaria Antofagasta (under a concession) 100% Treasury 
Empresa Portuaria Coquimbo (under a concession) 100% Treasury 
Empresa Portuaria Valparaíso (under a concession) 100% Treasury 
Empresa Portuaria San Antonio (under a concession) 100% Treasury 
Empresa Portuaria Talcahuano-San Vicente (under a concession) 100% Treasury 
Empresa Portuaria Puerto Montt 100% Treasury 
Empresa Portuaria Chacabuco 100% Treasury 
Empresa Portuaria Austral 100% Treasury 
Empresa de Abastecimiento de Zonas Aisladas (EMAZA), being liquidated 100% Treasury 
Empresa Concesionaria de Servicios Sanitarios S.A. (ECONSSA) CORFO 99%, Treasury 1% 
Empresa de Servicios Sanita rios Lago Peñuelas S.A. CORFO 64.05%. Treasury 34.62% 
Other 1.33% 
Empresa de Transporte de Pasajeros METRO S.A.  CORFO 62.75%. Treasury 37.25% 
Zona Franca de Iquique S.A. (ZOFRI) CORFO 71.28%. Treasury 1.4% 
Other 27.32% 
Polla Chilena de Beneficencia S.A. CORFO 99%. Treasury 1% 
Comercializadora de Trigo S.A. (COTRISA) CORFO 97.24%. Other 2.76% 
Sociedad Agrícola Sacor SpA, being liquidated CORFO 100% 
Sociedad Agrícola y Servicios Isla de Pascua SpA (SASIPA) CORFO 100% 
Casa de Moneda de Chile S. A. CORFO 99%. Treasury 1% 
Empresa Nacional del Carbón S.A. (ENACAR), being liquidated CORFO 99.97%. Other 0.03% 
Source: State-owned enterprises system (SEP), viewed online at www.sepchile.cl . 
3.187.  In 2013, Chile's State-owned enterprises as a whole generated revenue of 
US$32,602.86 million, equivalent to 12.45% of the GDP, and had 49,455 employees.167 
The five largest companies by revenue a ccounted for 96.05% of revenue (CODELCO 
contributed 45.87%).168 The revenue of companies administered by the SEP amounted to 
US$1.2 billion in 2013, while its assets rose to US$11.8 billion.169 
3.3.4  Government procurement 
3.3.4.1  Overview 
3.188.  Chile has a transparent and efficient government procurement system for goods and 
services, making use of an electronic procuremen t platform. It reformed its procurement system 
in 2003, creating the Chilean Government Procurement and Contracts System based on a best 
                                               
167 Information from the Centra l Bank of Chile viewed at: http://www.bcentral.cl . 
168 Online information from the Budget Directorate (DIPRES) viewed at: http://www.dipres.gob.cl . 
169 SEP (2014), Memoria 2013 viewed at: 
http://www.sepchile.cl/fileadmin/ArchivosPortal/SepChile/Documentos/Memorias/MemoriaSEP2013/Sep_memo
ria2013.pdf , and SEP (2014), Informe Financiero al 31 de diciembre de 2013. Empresas SEP . Viewed at: 
http://www.sepchile.cl/fileadmin/ArchivosPortal/SepChile/Documentos/Informes/INF_GESTION___a_dic_2013.
pdf. WT/TPR/S/315 • Chile 
 
- 85 - 
 
  practices mechanism. Since then, it has introduced further changes to its legislation, including 
directives intended to continue improving the System's functioning and increasing its efficiency. The authorities consider that in 2013, ten years after it was created,, the System had generated savings for the State amounting to a cumulative total of US$681 million, and achieved high 
standards of transparency and probity. The System also aims to expand participation by suppliers 
and buyers in the government procurement mark et. There is no discrimination whatsoever as 
regards products, services and suppliers according to their origin. Purchasing by State-owned 
enterprises and for public works is gove rned by the respective regulations. 
3.189.  In 2014, procurement by the Chilean Government (excluding State-owned enterprises and 
concessions) amounted to some US$10 billion (corresponding to 2.9% of the GDP), not counting public works. Over 900 purchasers from the central and local administrations took part in 
ChileCompra's bidding procedures, with over 2 million contracts processed annually.
170 
Since 2012, State-owned enterprises have been able  freely to utilize ChileCompra. Some 90% of 
the contracts processed by ChileCompra concern small and medium-sized enterprises. 
3.190.  Chile is an observer in the WTO Committee on Government Procurement. In the course of 
preparing this review, the Chilean authorities co nfirmed that, for the time being, there are no 
plans to negotiate accession to this Agreement. On the other hand, Chile has accepted 
commitments on government procurement under the RTAs it has signed. An agreement 
on government procurement with Uruguay within the LAIA framework came into force in 2012. Thresholds vary depending on the agreement.
171 
3.3.4.2  Legal framework and procedures 
3.191.  The Basic Law on Administrative Contracts for the Supply and Rendering of Services 
(No. 19.886) of 30 July 2003, the amendments thereto, and its implementing Regulations 
(Ministry of Finance Supreme Decree No. 250 of September 2004) lay down the legal framework 
for government procurement of goods and services by all Central Government departments, 
regional and provincial governments, munici pal authorities, the armed forces and the 
Comptroller-General of the Republic.172 The Law does not apply to State-owned enterprises, 
which follow their own regulations on procurement.  In the case of public works, Law No. 19.886 
applies as regards the mandatory use of the electronic information system for procurement and the Government Procurement Tribunal (see below), and in general on a suppletive basis.
173 
3.192.  The Directorate of Purchasing and Government Procurement (DCCP) of the Ministry of 
Finance, created by Law No. 19.886, is responsible for developing and implementing government 
policy on procurement. It is also in charge of maintaining and managing the electronic information system for purchasing and government procurement (ChileCompra), through which all entities 
whose procurement is covered by Law No. 19.886 must quote prices, invite bids, source 
contractors, award contracts and carry out procurem ent procedures for goods, services and public 
works.
174 Access to ChileCompra is open to the public and free of charge. 
3.193.  Pursuant to Law No. 19.886, there are four types of government procurement, namely, 
framework agreements (online store), public biddi ng, private bidding and direct negotiation or 
contracting. All procurement procedures must us e the ChileCompra electronic information system. 
For public bidding procedures, the call for bids may also be published in other international, 
national or regional media. 
3.194.  Under framework agreements, awarded throug h public bidding procedures, the DCCP 
agrees unit prices with suppliers of particular goods and services, which government authorities 
then procure through direct purchase orders in accordance with the terms laid down in the 
                                               
170 ChileCompra's electronic address is: http://www.ch ilecompra.cl . 
171 Information available on  ChileCompra's website: http://www.chilecompra.cl . 
172 Laws Nos. 20.088 of 2006, 20.238 of 2008 and Decree Law No. 11 of 10 March 2010 introduced 
amendments to Law No. 19.886. The implementing Regulations were amended by Ministry of Finance Decree No. 1562, published on 20 April 2006, and by Decree No. 260 of 13 July 2007. 
173 Law No. 19.886 and its implementing Regulation s may be viewed on ChileCompra's website: 
http://www.chilecompra.cl . 
174 Further information on the go vernment procurement process ma y be found on ChileCompra's 
website: http://www.chilecompra.cl . WT/TPR/S/315 • Chile 
 
- 86 - 
 
  framework agreements. In October 2014, 37 framework agreements were in effect.175 Pursuant to 
Law No. 19.886, government authorities are obliged to purchase the goods and services available 
in the online store for ChileCompra Express fr amework agreements. If the product or service 
needed cannot be found there or more advantageo us terms can be found on the market, a public 
or private bidding procedure must be followed or, in special cases, there may be direct agreement 
using the website http://www.mercadopublico.cl . Since 2009, purchasing under framework 
agreements exceeding 1,000 UTM must be through re verse bidding: the authorities must transmit 
the intention to buy through the System to all suppliers which have the type of product required 
available under a framework agreement. 
3.195.  Public bidding is the most common procedure for procurement and is mandatory, with the 
exceptions provided in Law No. 19.886. Around 90% of procurement is through public bidding. 
Private bidding and direct agreement are exceptio nal methods to be used following a justified 
resolution and only in the circumstances defined in the Law. Law No. 19.886 sets minimum time-limits between the call for bids and the closing date for receiving them in public bidding 
procedures. If the amount of a contract is 1,000 UTM or more, the call must be published at least 
20 calendar days prior to the cut-off date for receiving bids; for lesser amounts, the minimum period is ten days. All these time-limits may be shortened in the case of simple standard goods 
or services. 
3.196.  The DCCP keeps a National Register of Pub lic Administration Suppliers, an electronic 
register created by Law No. 19.886 in which natural or legal persons, either Chileans or foreigners not domiciled in Chile, wishing to take part in bidding may be registered. The Register is open to 
the public and available on the website of ChileCo mpra, as well as on that of ChileProveedores.
176 
An application for listing in the Register may be made at any time and confirms the legality and financial and technical capacity of suppliers, although it is not an essential requirement for 
participating in procurement. Nevertheless, when issuing contracts, authorities may require that 
bidders be listed in the National Register. Accordin g to information provided by the authorities, in 
September 2014, there were 56,824 suppliers listed in the Register, of which 39% were from the 
metropolitan region and 61% from other regions. 
3.197.  Government authorities must determine criteria for evaluating bids in their procurement 
procedures, taking into account, inter alia , the price of the bid, the experience of the bidders, 
the technical quality of the goods or services offered, technical assistance, after-sales service and 
delivery date. Pursuant to the Government Procurement Regulations, these criteria must also be 
spelled out in advance in the tender specifications , showing the scores to be assigned to each of 
them. The technical specifications for the goods or services to be procured must be generic and 
not refer to any specific brands. The bids are opened electronically through the information 
System. The contract is awarded to the bid that provides the most advantageous combination of the criteria laid down in the specifications and takes the form of an administrative act that is also 
duly notified to the other bidders. This act awarding a contract sets out the evaluation criteria and 
shows the points scored that resulted in the wi nner being declared as having made the most 
competitive bid and must be published in such a way that all suppliers can see for themselves the results of the bidding procedure.
177 The contract may not be awarded to a bid that does not meet 
the criteria and requirements laid down in the tender specifications. 
3.198.  Public bidding is open to all under the same conditions. There is no provision in Chile's 
legislation for margins of preference for national suppliers and no discrimination among products, 
services and suppliers according to their origin. Nor is there any provision for offsets as a condition 
for awarding a contract or any set asides for certain bidders. Nevertheless, efforts are made to encourage SMEs to participate in the process. For this purpose, the Propyme Council has been 
established, an advisory body coordinated by  ChileCompra whose objective is to promote 
participation and business opportunities for smaller companies in the government procurement market. 
                                               
175 All framework agreements have a specific expiry date and cover a number of products and services. 
Online information from ChileCompra viewed at: 
http://www.chilecompra.cl/index.php?option=com_content&view=article&id=951&Itemid=697 . 
176 The website of the Register of Suppliers (ChileProveedores) is: http://www.chileproveedores.cl . 
177 Articles 6 and 41 of the implemen ting Regulations and Articles 18 et seq . of Law No. 19.886. WT/TPR/S/315 • Chile 
 
- 87 - 
 
  3.199.  During the period under review, important changes to the government procurement 
Regulations were introduced and came into effect on 27 December 2011. They are mainly intended to increase competition in the procurement proc ess through ChileCompra, increasing the minimum 
time-limit for bids of less than 100 UTM from two to five days. Another aim is to streamline the 
procurement process and lessen the red tape, raising the obligation to register a contract 
from 100 UTM to 1,000 UTM. This allows electronic formalization of contracts for lesser amounts covering easily specified standard goods and services, thereby facilitating management of 
procurement. Further support for SMEs has been introduced, allowing the performance bond, 
which is required in procurement, to be divided up and released in tranches as the contract is being fulfilled. This enables suppliers to keep capital immobilized for a shorter time as prior to this they had to wait until the end of the contract before the bond was returned. The amendments to 
the Regulations also forbid suppliers to contact officials of the contracting authority throughout the 
course of the bidding procedure, an obligation that was already incumbent upon the contracting authority. 
3.200.  ChileCompra has also produced a series of guidelines to facilitate the procurement process, 
for example, Government Procurement Directive No. 5, Procurement under a framework 
agreement , of 6 October 2006; Government Procurement Directive No. 17 of 8 May 2014, 
Instructions for undertaking inclusive government procurement and promoting equal opportunities 
in the Government market; Government Procurement Directive No. 16, Subcontracting and the 
Procurement Law  of 20 June 2013, which provides that government authorities must ensure that 
the contractor or subcontractor complies with its obligations concerning the labour force; 
Government Procurement Directive No. 15, Instructions for applying the large-scale procurement 
mechanism  of 6 December 2012; and Government Procurement Directive No. 14, Instructions for 
the operation of evaluation commissions of 6 December 2012, inter alia . All these Directives, as 
well as ChileCompra's circulars, are available on ChileCompra's website. 
3.201.  The Government Procurement Tribunal, which has been operating since 
September 2005, two years after publication of Law No. 19.886 which created it, is empowered to 
hear and decide on action taken to challenge any illegal or arbitrary act or omission that may have 
occurred between the approval of the tender spec ifications and the award of the contract in 
procurement procedures by government authoritie s, including those concerning public works. 
The Tribunal is an administrative litigation body and its directives, sentences and economic 
situation are subject to oversight by the Supreme Co urt, although it is not part of the Judiciary. 
The Tribunal's statutory regime is set out in Articles 22 and 23 of Law No. 19.886. The Tribunal's judges do not deal exclusively with its cases. The Law requires the DCCP to provide the 
infrastructure, technical support and human and material resources needed for the Tribunal's 
proper functioning. 
3.202.  Any natural or legal person having a proven interest in a procurement procedure may 
submit an application to the Tribunal challenging the award within ten working days from the time 
when the contested act or omission became known or was published. After the Tribunal has agreed to hear the challenge, it may decree the suspension of the bidding procedure to which the challenge relates. In a definitive ruling, the Tribunal decides on the legality or arbitrariness of the 
act or omission challenged and orders the measures  needed to restore the rule of law. An appeal 
may be made against the Tribunal's rulings to the Appeals Court in Santiago. Between 2009 and 2013, the Tribunal issued 88 final rulings.
178 
3.203.  An analysis of the cases heard by the Government Procurement Tribunal between the end 
of September 2010 and 31 December 2013 shows that the decision to award a contract is the 
administrative act in procurement procedures which gives rise to the most complaints: 
some 58% of suppliers contesting bidding procedures did so at the time the contract was awarded. 
The decision to declare a bidding procedure void is the second most common subject of complaint (9%). The other cases concern acts such as the opening of bids, their evaluation, the bases for the bidding procedure and the decision declaring a bid inadmissible. Most of the 
complaints (68%) concerned tenders for the supply of movable goods and services, with contracts 
to supply services being the source of the most complaints. The next most common were contracts to carry out public works, at 20%, followed by bids for concession contracts (9.6%). Municipal 
                                               
178 Online information from the Procurement Tribunal viewed at: http://www.tribunaldecompras.cl . WT/TPR/S/315 • Chile 
 
- 88 - 
 
  authorities were the subject of the largest number of complaints (36% of the total), followed by 
central administration institutions at 17%, and hospital and health services at 14%.179 
3.204.  Chile does not have any unified regulatory framework for public works. Procurement 
procedures are governed by the individual organic laws pertaining to the various government and 
municipal authorities. Nevertheless, the organic law of the Ministry of Public Works (MOP) 
(DFL No. 850 of 1997) and the Regulations on Public Works Contracts (Supreme Decree No. 75 of 2004, amended by Decree No. 810 of 2008) lay down the rules to be followed for such 
contracts. There is also a Law on Public Work s Concessions (Supreme Decree No. 900 of 1996 of 
the MOP) and its implementing Regulations (Supreme Decree No. 956 of 1997), which regulate the procurement of public works under the sy stem of concessions to private persons.
180 Works 
contracts concluded by the Ministry of Housing and Urban Planning for its own purposes and 
contracts for carrying out, operating and maintain ing urban works with third party involvement are 
governed by Supreme Decree No. 236, which la ys down the general basic regulations for 
procurement of works for housing and urban se rvices, Law No. 19.537 on co-ownership of 
property, and Law No. 19.865 on shared urban financing. 
3.3.5  Intellectual property rights 
3.3.5.1  Overview 
3.205.  Since the previous review, Chile's objective has continued to be to implement an 
intellectual property regime that strikes a balanc e between obligations and rights, on the one hand 
giving adequate protection to creators and invent ors and, on the other, safeguarding the interests 
of users and society when rights fall into the public domain. Chile has made a number of reforms 
to its legislation with the aim of strengthening its intellectual property regime and bringing it into 
line with its international commitments. In some instances, Chile's legislation goes further than the obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights 
(TRIPS Agreement), for example, in certain areas relating to copyright and industrial property. 
This reflects Chile's commitments under other bilateral agreements signed with various trading partners, which in intellectual property matters exceed the minimum standards in the 
TRIPS Agreement. Chile deposited the Protocol amending the TRIPS Agreement on 26 July 2013. 
3.206.  Chile is a member of the World Intellectual Property Organization (WIPO) and has signed a 
number of WIPO-administered treaties.
181 It is also a member of the International Union for the 
Protection of New Varieties of Plants (UPOV). Since the previous trade policy review, Chile has 
signed two WIPO-administered treaties: the Beijing Treaty on Audiovisual 
Performances (24 June 2012) and the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled (28 June 2013). Also during 
this period Chile ratified the Budapest Treaty on International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Pr ocedure (2011), the Trademark Treaty (2011) and 
the Brussels Convention Relating to the Distribution of Programme-Carrying Signals Transmitted 
by Satellite (2011). For the purposes of the Budapest Treaty, in 2014 the Chilean Microbian 
Genetic Resources Collection (CChRGM) was designated as the international authority. 
3.207.  The National Industrial Property Institute (I NAPI) of the Ministry of the Economy started 
work in 2009 and is responsible for registerin g and promoting industrial property rights 
(trademarks, patents, utility models, industrial designs, integrated circuits, appellations of origin 
and geographical indications) and keeps a databa se of applications and/or registration of 
trademarks and patents that is open for consultation.
182 The INAPI was created by 
                                               
179 Idem.  
180 The MOP's rules may be viewed online at: http://www.mop.cl/mop_marco_legal.htm . 
181 The WIPO treaties to which Chile is party are (with the date of entry into force in brackets): 
Rome Convention (5 September 1974), Berne Convention (5 June 1970), WIPO Convention (25 June 1975), UPOV Convention (5 January 1996), Paris Conven tion (14 June 1991), Phonograms Convention 
(24 March 1977), Nairobi Treaty (14 December 1983), Copyright Treaty (6 March 2002), Film Register Treaty (29 December 1993), Performances and Phonograms Treaty (20 May 2002), Patent Cooperation Treaty (2 June 2009), Brussels Convention (8 June 2011), Budapest Treaty (5 August 2011) and the Trademark Treaty (5 August 2011). Viewed at: 
http://www.wipo.int/treaties/es/ShowResults.jsp?country_id=36C&start_year=ANY&end_year=ANY&search_w
hat=C&treaty_all=ALL . 
182 The INAPI database is available online at: http://www.dpi.cl/dpi_web /Frm_Login_ default2.htm . WT/TPR/S/315 • Chile 
 
- 89 - 
 
  Law No. 20.254, published on 14 April 2008. The Intellectual Property Rights Department (DDI) in 
the Directorate of Libraries, Archives and Muse ums (DIBAM) is responsible for the Intellectual 
Property Register in respect of copyright and re lated rights and for following up these matters.183 
The Seeds Department of the SAG deals with applications for the protection of new plant varieties 
while the SAG's New Plant Variety Assessment Committee grants registration for them. The ISP, 
part of the Ministry of Health, keeps the regist er of medicines, information on which has been 
protected as undisclosed information, while the Pesticides and Fertilizers Department of the SAG is 
responsible for registering agricultural chemicals, information on which has been protected as 
undisclosed information. The Interministerial Intellectual Property Committee, an informal mechanism for coordination and exchange of in formation among the various government bodies 
dealing with intellectual property, is chaired by the Ministry of Foreign Affairs and composed of 
various departments in the Ministries of the Economy, Education, Health, and Agriculture and the 
National Council for Culture and the Arts; it coordinates Chile's position in international forums and facilitates implementation of its international commitments. 
3.208.  Matters concerning disputes are heard by the INAPI in the first instance. The Industrial 
Property Tribunal, created by Law No. 19.996, is a second-instance independent jurisdictional body to hear and settle disputes relating to opposition or cancellation of industrial property rights and 
plant variety rights registered with the SAG. Appeals against the Tribunal's rulings may be made to 
the Supreme Court. Infringements of rights relating to industrial property, intellectual property and registered plant varieties are also brought before the ordinary civil or criminal courts. 
3.209.  As already mentioned, the majority of Chile's RTAs include special chapters on intellectual 
property. Some of them contain clauses on geographical indications or enforcement measures as 
part of the market access disciplines.
184 Chile has also signed agreements with the European Union 
on trade in wines and spirits, which are annexed to its RTA. In these, both parties undertake to 
grant protection for geographical indications listed in the appendices to the agreements and to 
refrain from using certain generic indications and trademarks that are identical or similar to those of the other party. Accession to the PCT, which occurred in 2009, was one of the commitments 
undertaken by Chile in its RTAs with the United States and the European Union. 
3.210.  Chile has notified the texts of its intellectual property laws and regulations to the WTO, 
as well as the amendments thereto. The latest notifications were in 2009.
185 During the period 
under review, Chile continued to participate in the work of the TRIPS Council, particularly in 
relation to geographical indications, on which it  has submitted, together with 19 other Members, 
a proposed decision on the creation of a multilateral system for the registration and notification of geographical indications for wines and spirits.
186 
3.3.5.2  Legal framework 
3.211.  The WTO TRIPS Agreement was incorporated into Chile's legislation by Supreme 
Decree No. 16 of 5 January 1995 of the Ministry of Foreign Affairs. Chile's legislation covers all 
categories of intellectual property covered in th e TRIPS Agreement, and also areas negotiated in 
connection with bilateral agreements (Table 3.10 ). During the review period, Chile introduced 
subsequent amendments to its legislation, as re gards both industrial property and copyright. 
                                               
183 The website of the Intellectual Property Rights Department is: http://www.dibam.cl/derechos_ 
intelectuales/contenido.asp?id_con tenido=122&id_submenu=173&id_menu=38 . 
184 This is the case for the agreements with Cana da; Central America; China; Hong Kong, China; 
Malaysia; Panama; and Viet Nam. Other agreements includ e references to these matter s in sections other than 
market access. 
185 WTO documents IP/N/1/CHL/I/6 of 7 Se ptember 2009 (Implementing Regulations for 
Law No. 19.039 on Industrial Property); IP/N/1/CHL/I/7 of 7 September 2009 (DFL No. 3 of the Ministry of the Economy of 20 June 2006 containing the revised, coordinated and consolidated text of Law No. 19.039 on Industrial Property); IP/N/1/CHL/I/8 of 7 Sept ember 2009 (Law No. 20.160 amending Law No. 19.039 on 
Industrial Property); IP/N/1/CHL/I/9 of 7 Septembe r 2009 (Law No. 20.254 creating the National Industrial 
Property Institute); IP/N/1/CHL/C/10 of 8 September 2009 (Law No. 19.914, adapting the legislation indicated 
in the free trade agreement with the United States); and IP/N/1/CHL/O/2 of 7 September 2009 
(Law No. 20.169 regulating unfair competition). 
186 The latest revision of this proposal is  contained in WTO document TN/IP/W/10/Rev.4 
of 31 March 2011. WT/TPR/S/315 • Chile 
 
- 90 - 
 
  Table 3.10 Overview of intellectual property rights in Chile, 2014 
Main legislation Area covereda Term  Exclusions and limitationsa 
Trademarks 
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated text 
in DFL No. 3 of 2006) and its 
implementing Regulations (Decree 
No. 236 of 2005), amended by 
Decree No. 29 of 2012; 
Law No. 19.996 of 2005; 
Law No. 20.160 of 2007; and Law 
No. 20.569 of 2012. The latter 
amends Law No. 19.039 in order 
to harmonize and improve the 
procedure for filing trademark and 
patent applications. Any sign that may be 
represented graphically, 
capable of distinguishing on 
the market products or 
services or industrial or 
business establishments, 
including sounds. 10 years from the 
date of entry in the 
register; renewable 
for equal periods at 
the request of the 
owner. Coats of arms, flags, names of 
States, international organizations or 
government public services, names 
of plant varieties, names of persons, 
names that mislead or deceive, 
trademarks that are identical or 
similar to well-known trademarks 
registered in Chile or abroad, 
registered geographical indications 
and appellations of origin and 
distinctive signs that are contrary to 
public order or morality. 
Patents 
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated text 
in DFL No. 3 of 2006) and its 
implementing Regulations (Decree 
No. 236 of 2005), amended by 
Decree No. 29 of 2012; 
Law No. 19.996 of 2005; 
Law No. 20.160 of 2007; and Law 
No. 20.569 of 2012.  Any product or process that 
is new, involves an 
inventive step and 
is capable of 
industrial application. 
Compulsory licences may be 
granted to remedy 
anti-competitive practices, 
for reasons of public health, 
national security, 
non-commercial public use 
or national emergency; or 
to work a subsequent 
patent that cannot be 
worked without infringing a 
prior patent. 20 years from the 
filing date. Additional 
terms of protection 
are allowed if there 
has been an 
unjustified delay in 
granting the patent or 
a sanitary permit for a 
pharmaceutical 
product.  Procedures and materials such as 
scientific theories, business plans, 
mathematical, surgical, therapeutic 
or diagnostic methods; plants and 
animals (except microorganisms) 
and essentially biological processes 
for the production of plants and 
animals (other than microbiological 
processes); parts of living beings as 
encountered in nature and natural 
biological processes and materials. 
Protection is not granted if an 
invention is contrary to public order, 
security, morality, the health of 
persons, animals or plants, or the 
environment. 
Utility models 
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated text 
in DFL No. 3 of 2006) and its 
implementing Regulations (Decree 
No. 236 of 2005) amended by 
Decree No. 29 of 2012; 
Law No. 19.996 of 2005; 
Law No. 20.160 of 2007; and Law 
No. 20.569 of 2012.  Instruments, appliances, 
tools and objects, in which 
the arrangement can be 
claimed (appearance and 
functioning) and provided 
that it has utility. 10 years from the 
date of filing; 
not renewable. The exclusions and limitations laid 
down in Title III of the Industrial 
Property Law concerning patents, 
where applicable. 
Industrial drawings and designs  
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated text 
in DFL No. 3 of 2006) and its 
implementing Regulations (Decree 
No. 236 of 2005) amended by 
Decree No. 29 of 2012; 
Law No. 19.996 of 2005; 
Law No. 20.160 of 2007; and Law 
No. 20.569 of 2012.  Industrial design: any 
three-dimensional form and 
industrial or hand-made 
article used to make other 
units that can be 
distinguished from similar 
articles and has a new 
appearance. 
 
Industrial drawing: 
combination of figures, lines 
or colours to be 
incorporated in a product 
for the purposes of 
ornamentation and that 
give it a new appearance. 10 years from the 
date of filing; 
not renewable. Designs and drawings whose 
appearance is dictated entirely by 
technical or 
functional considerations. 
Articles of clothing of any kind and 
products which consist of a form 
whose exact reproduction is 
necessary to allow the product in 
which it is incorporated to be 
assembled or connected to another 
product of which it is a part. WT/TPR/S/315 • Chile 
 
- 91 - 
 
  Main legislation Area covereda Term  Exclusions and limitationsa 
Layout designs of integrated circuits 
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated text 
in DFL No. 3 of 2006) and its 
implementing Regulations (Decree 
No. 236 of 2005) amended by 
Decree No. 29 of 2012; 
Law No. 19.996 of 2005; 
Law No. 20.160 of 2007; and Law 
No. 20.569 of 2012.  The three-dimensional 
arrangement of elements in 
layout designs of integrated 
circuits, designed for their 
manufacture, to the extent 
that they are original. 10 years from the 
date of filing for 
registration or first 
commercial 
exploitation in any 
part of the world; not 
renewable. The right does not include 
reproductions of layout designs 
made for private or evaluation 
purposes, analysis, research or 
teaching; acts of commercial 
exploitation of original layout designs 
created as a result of the evaluation 
or analysis of a protected layout 
design; acts of commercial 
exploitation of any article 
incorporating an unlawfully produced 
integrated circuit if the person 
carrying out such acts did not know 
that it incorporated an unlawfully 
reproduced integrated circuit. 
Business secrets and information submitted to the au thority in order to obtain sanitary registration  
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated 
text in DFL No. 3 of 2006) and its 
implementing Regulations 
(Decree No. 236 of 2005); Law 
No. 19.996 of 2005; amended by 
Decree No. 29 of 2012; 
Law No. 20.160 of 2007; Law 
No. 20.569 of 2012; and Law 
No. 20.169 regulating unfair 
competition.  Any knowledge regarding 
products/industrial 
processes which, if not 
disclosed, gives its owner 
an improvement, advance 
or competitive advantage. 
Undisclosed test data 
submitted to the authority 
in order to obtain the 
sanitary registration of 
pharmaceutical products 
and agricultural chemicals. 
Registration or sanitary 
authorization is with the ISP 
or with the SAG, as 
applicable. Indefinite.  
The competent 
authority may not 
disclose or utilize the 
test data for a period 
of 5 years for 
pharmaceutical 
products and 10 years 
for agricultural 
chemicals. None.  
Protection is not granted if the owner 
engages in anti-competitive 
practices; for reasons of public 
health, national security, 
non-commercial public use or 
national emergency; if the product is 
the subject of a compulsory licence; 
if it has not been put on sale in Chile 
12 months after its sanitary 
registration or authorization in Chile; 
or if the application for protection 
was submitted in Chile 12 months 
after the date on which the first 
registration or sanitary authorization 
abroad was obtained. 
Geographical indications (GI) and appellations of origin (AO)  
Industrial Property 
Law No. 19.039 (revised, 
coordinated and consolidated text 
in DFL No. 3 of 2006) and its 
implementing Regulations (Decree 
No. 236 of 2005) amended by 
Decree No. 29 of 2012; 
Law No. 19.996 of 2005; 
Law No. 20.160 of 2007; 
Law No. 20.569 of 2012; and 
Decree No. 82 of 2006 (approving 
the implementing Regulations for 
Article 98 of Law No. 19.039). 
Law No. 18.455 of 1985 
(Appellations of origin); and 
Decree No. 464 of 1995 
(Wine-growing zoning); 
Decree No. 521 of 2000.  GI: identifies the product as 
originating in a country or 
region or locality of the 
national territory, when its 
quality, reputation or other 
characteristic is basically 
attributable to its 
geographical origin. 
 
AO: Ibidem . Also taking into 
consideration other natural 
and human factors affecting 
the special nature of the 
product. Indefinite.  The following signs or expressions 
are not recognized as GI or AO: 
those which do not comply with the 
definitions given in the law; those 
that are contrary to morality or 
public order; those that may mislead 
as to the geographical source, 
nature, method of manufacture, or 
qualities of the product; those that 
are generic (except those recognized 
in Chile's trade treaties); those that 
are identical or similar to other GI or 
AO for the same product. 
Copyright and related rights  
Law No. 17.336 of 1970 
(amended by 
Law No. 17.773 of 1972; 
Law No. 18.443 of 1985; 
Law No. 18.957 of 1990; 
Law No. 19.072 of 1991; 
LawNo. 19.166 of 1992; 
Law No. 19.912 of 2003; 
Law No. 19.914 of 2003; 
Law No. 19.928 of 2004; 
Law No. 20.243 of 2008; 
Law No. 20.435 of 2010; and 
Law No. 20.750 of 2014) 
and its implementing Regulations 
contained in Decree Law No. 425 
of 2010, implementing the 
procedure for registration of 
intellectual property mediators 
and arbitrators, the form and 
specifications for registration and 
the fees to be paid to mediators 
and arbitrators, 
and Decree No. 277 of 2013, Automatic protection applies 
to intellectual works or 
productions and registration 
is voluntary. 
Literary, artistic and 
scientific works, including 
protection for 
performances, the 
production of phonograms, 
broadcasts by broadcasting 
organizations, computer 
programs (software); 
databases; video games; 
multimedia works; 
engineering and 
architectural plans. 
Depending on the case, 
protection includes both 
economic and moral 
aspects. The latter are only 
recognized to natural 
persons and may not be 
renounced by the holder. Life of the author plus 
70 years after his 
death or from the first 
publication or fixation, 
depending on the type 
of intellectual work, 
performance or 
phonographic 
production. 50 years 
for broadcasts by 
broadcasting 
organizations. There is a series of exclusions and 
limitations in Title III of 
Law No. 17.336 and when these 
apply they concern both copyright 
and related rights.  WT/TPR/S/315 • Chile 
 
- 92 - 
 
  Main legislation Area covereda Term  Exclusions and limitationsa 
which contains the implementing 
regulations for the current text of 
Law No. 17.336.  
New plant varieties  
Law No. 19.342 of 1994 and its 
implementing Regulations (Decree 
No. 373 of 1996) New plant varieties that are 
distinct, homogeneous and 
stable. 
Registration is with the 
SAG. 
Compulsory licences are 
granted if the breeder 
exercises an abusive 
monopoly of the 
exploitation or sale of the 
protected variety. 18 years for trees and 
vines and 15 years for 
other species. 
Not renewable. A breeder's right is not infringed if 
the farmer uses properly harvested 
reproduction material on his own 
farm. This material may not, 
however, be publicized or 
transferred as seed. 
The breeder's right in a variety does 
not prevent another person from 
using it to create a new variety, 
without authorization from the 
breeder of the original variety. If the 
original variety is to be used 
permanently for the production of 
the new variety, however, the 
breeder's authorization is required.  
a The description of the areas covered and of the exclusions or limitations listed is not exhaustive. 
Source:   WTO Secretariat based on information provided by the authorities. 
3.212.  Chile has a regime for the international exhaustion of intellectual property rights, as 
regards both industrial property and copyright. 
3.3.5.3  Industrial property 
3.213.  The principal legislation on industrial property can be found in the Industrial Property 
Law No. 19.039 (revised, coordinated and consolidated text in DFL No. 3 of 2006) and its 
implementing Regulations (Decree No. 236 of  2005), amended by Decree No. 29 of 2012. 
3.214.  Since its previous review, Chile has introduced changes to Law No. 19.039.187 These are 
mostly contained in Law No. 20.569 of 2012, which amends Law No. 19.039 in order to harmonize 
and improve the procedure for filing applications for trademarks and patents. It also includes 
provisions for implementing the Patent Cooperation Treaty (PCT) in Chile, for example, as regards 
time-limits for applications. In general, the Law provides that patent application procedures at the national phase should abide by the provisions in  the Treaty. Law No. 20.569 also declares that the 
INAPI is the body responsible for receiving and processing international patent applications. 
All these changes have been incorporated in DFL No. 3. 
3.215.  In October 2012, the INAPI was designated as the International Searching Authority 
(ISA)/International Preliminary Examination Authority (IPEA) for the purposes of the PCT. 
It commenced its activities as an ISA/IPEA in October 2014.
188 During the two years between its 
appointment as an ISA/IPEA in October 2012 and the commencement of operations in 
October 2014, the INAPI worked on setting up the databases and designing a quality control 
system for dealing with applications and examination of patents submitted under the international phase of the PCT. It also worked on implementi ng an online e-PCT system created by WIPO for 
access to international databases and for transmitting documents concerning international 
PCT applications electronically and on the crea tion of a PCT Department within the Patents 
Subdirectorate. The INAPI also drew up patent directives concerning INAPI criteria for technical, legal and procedural examination for registration of patent applications.
189 
3.216.  During the review period, the INAPI signed a series of agreements or memorandums of 
understanding with similar bodies in other countries, including: Australia; Brazil; China; Colombia; the Dominican Republic; Ecuador; El Salvador; Fr ance; the Republic of Korea; Mexico; Paraguay; 
                                               
187 DFL No. 3 of 9 March 2006 contains the revised, coordinated and consolidated text of Law 
No. 19.039. 
188 It is an ISA's role to identify the published documents which may affect patentability of the invention 
and to issue a preliminary and non-binding written opinion on whether or not the invention appears to comply with patentability criteria, taking into account the resu lts in the search report. An  IPEA undertakes a second 
optional examination. 
189 Online information from the INAPI viewed at: http://www.inapi.cl/portal/institucional/600/w3-article-
4878.html.  WT/TPR/S/315 • Chile 
 
- 93 - 
 
  Spain; and the United States. It also signed agreements with the European Patent Office and with 
ProSur (MERCOSUR). In January 2013, a cooperation agreement was signed between the INAPI and WIPO, and an interinstitutional cooperation agreement between the INAPI and the FNE in September 2011, as well as a letter of agreement on non-reimbursable technical cooperation 
with the Interamerican Development Bank (IDA) in March 2013. 
3.217.  Chile's legislation provides for the possibility of granting compulsory licences in certain 
situations. In the case of patents, a compulsory licence may be granted if the patent's owner has 
been guilty of conduct or practices contrary to free competition pursuant to a decision by the 
Competition Tribunal; for reasons of public health, national security, non-commercial public use, national emergency or other extremely urgent situations; also if the compulsory licence is needed to work a subsequent patent that cannot be worked without infringing a prior patent, subject to 
certain conditions.
190 In the case of new plant varieties, a compulsory licence may be granted if 
the breeder of a new plant variety exercises an abus ive monopoly of the exploitation or sale of the 
protected variety. So far Chile has never granted compulsory licences. 
3.218.  During the review period, an increasingly larg e number of patent applications were filed. 
In 2013, the INAPI received 3,076 patent applications, a 2% increase in comparison with 2012. Of the applications received, 18% were  under the Paris Convention and 82% under the 
national phase of the PCT; this is different to th e situation reported for the previous review, when 
the PCT had not yet come into force, and since it came into effect in 2009 the Paris Convention has been much less important in Chile. Some 89% of applications came from non-residents in 2013. With regard to the percentages of patent applications by area, the largest number 
concerned engineering (35.4%), particularly  in relation to mining, followed by 
chemicals (25.6%), pharmaceuticals (20.9%), electricity (9.9%) and biotechnology (8.2%). In 2013 as well, 654 patents for industrial designs and 115 for utility models were filed, 
together with seven relating to appellations of origin and four to geographical indications.
191 
3.219.  During the review period, the recognition of  special products received a boost through 
appellations of origin or geographical indications, mostly under the seal of origin programme 
launched in 2011 as a joint initiative by the MEFT and the INAPI. The aim of this programme is to 
encourage the use and protection of Chilean pr oducts by registering appellations of origin, 
geographical indications and collective marks and by certification. The programme promotes the use of industrial property tools to encourage the protection of traditional products, boost 
production and protect typically Chilean products, whether handicrafts or forestry or agricultural 
products, by means of these distinctive signs which give exclusive rights to exploitation or use. 
3.220.  In order to be registered, applications for Ch ilean geographical indications or appellations 
of origin for forestry and agricultural and food industry products require a favourable report from 
the Ministry of Agriculture concerning compliance wi th the requirements laid down in Article 97 of 
the Law, which is drawn up by the ODEPA within the Ministry. For foreign geographical indications 
and appellations of origin for such products, a re port from the Ministry of Agriculture is also 
required. At December 2014, five geographical indications, three appellations of origin, six certification marks and four collective marks had been registered.
192 
3.3.5.4  Copyright 
3.221.  The Intellectual Property Rights Department (DDI) in the Directorate of Libraries, Archives 
and Museums (DIBAM) is responsible for administering the government system for registration of copyright and related rights, promoting the protection  of such rights and conserving the fixation of 
the intellectual works in its collections.
193 It keeps the Intellectual Property Register (intellectual 
                                               
190 Article 51 of Law No. 19.039 (revised, coordinated and consolidated text). 
191 INAPI (2014), Reporte Anual INAPI 2014 . Viewed at: 
http://www.inapi.cl/portal/publicaciones/608/articles-4615_recurso_1.pdf . 
192 The following are the registered geographical indications: Limón de Pica (2010); Langosta de Juan 
Fernández (December 2011); Atún de Isla de Pascua (O ctober 2012); Cangrejo Dorado de Juan Fernández 
(2012); and Dulces de la Ligua (2014). The registered appellations of origin are: Sal de Cáhuil, Boyeruca Lo Valdivia (2013); Alfarería de Pomaire (2013); and Chamantos de Doñihue (2014). The registered certification marks are: Certified Sustainable Wine (2011); table grapes, Fresh Atacama (2012); Sello Propyme (2012); 
Sello de Turismo Científico CIEP (2012); and SIPAM Chiloé, (2013), while the collective marks are Chile a la 
carta (2013); Films Content People (2013); Fruits from Chile (2013); and Corazón de Paine (2014). 
193 Online information from the DDI viewed at: http://www.propiedadintelectual.cl . WT/TPR/S/315 • Chile 
 
- 94 - 
 
  works, related rights, contracts and pseudonyms) and deals with questions and reports requested 
or provided by individuals and public services . The DDI advises the Government on all matters 
concerning copyright, related rights and similar matters. The DDI was created by virtue of Article 90 of Law No. 17.336 of 1970 on intellectual  property and since then has been one of the 
specialized centres belonging to the DIBAM. 
3.222.  During the period under review, the DDI embarked upon a modernization process in order 
to facilitate provision of its services, undertake new spheres of activity and expand the number of 
tools available to improve the dissemination and protection of rights. This has resulted in a 
constant increase in the number of annual administrative procedures (Table 3.11). In 2014, remote registration was introduced in order to respond to registration requests by owners of rights of national origin and those residing abroad using the Internet, which account for 30% of 
all applications. 
Table 3.11 Administrative  procedures by the Department of Intellectual Property Rights, 
2009-2013  
 2009 2010  2011  2012 2013  
Registration 12,584 12,997  13,169  12,259 13,046  
Certificates 1,839 3,127  3,212  5,663 6,749  
Consultation 1,272 8,889  11,461  14,662 15,307  
Total  15,695 24,993  27,842  32,584 35,102  
Source: Intellectual Property Rights Department (DDI) of the Directorate of Libraries, Archives and Museums 
(DIBAM). 
3.223.  Since the 2009 trade policy review, an important change to Law No. 17.336 was 
introduced by means of Law No. 20.435 of 4 May 2010. This incorporated international standards 
for the protection of intellectual property rights in the digital sphere. The Law introduced a new 
catalogue of exclusions and limitations to copyrigh t and related rights and also contains provisions 
on enforcement and penalties, as well as on information on the management of rights. Two implementing Regulations were adopted for the proper implementation of Law No. 20.435: 
Decree Law No. 425, published in the Official Journal on 24 May 2011, which regulates the 
procedure for registering intellectual proper ty mediators and arbitrators, the form and 
specifications for registration and the fees to be paid to mediators and arbitrators, and 
Decree No. 277 published in the Official Journal on 28 October 2013, which contains the 
implementing regulations for the current text of Law No. 17.336. 
3.224.  According to the authorities, the basic object ives of these amendments are: (i) to apply 
effective measures that guarantee a sufficient level of protection through civil and criminal 
proceedings for the enforcement of copyright an d related rights in view of the frequent 
infringements commonly termed piracy; (ii) to establish a suitable framework of exclusions and limitations to copyright and related rights which guarantee access to cultural assets and the 
exercise of fundamental rights by the public, as is recognized in most international laws and in 
accordance with the flexibilities allowed by the TRIPS Agreement and reaffirmed by Chile in its 
various free trade agreements; and (iii) to regu late the responsibilities of Internet service 
providers, limiting their liability for infringeme nt of copyright and related rights committed by 
users of their services on their networks, in acco rdance with Chile's international commitments in 
the free trade agreement signed with the United States.
194 The authorities have pointed out that 
the amendments have in practice resulted in: adap tation of the existing rules to the requirements 
in FTAs; changes to the existing system of excl usions and limitations to copyright and related 
rights; the establishment of a new system of pena lties, updating the sanctions already available 
and qualifying new offences; streamlining civil and criminal proceedings, introducing special 
preventive measures; and specifying certain aspects concerning the procedure for determining 
rates by collective management bodies. 
                                               
194 Message from H.E. the President of the Republic launching a draft law amending Law No. 17.336, on 
intellectual property. (Bulletin No. 5012-03), available online at: http://www.leychile.cl/Consulta/portada_hl?tipo_norma=XX1&nro_ley=20435&anio=2014 . WT/TPR/S/315 • Chile 
 
- 95 - 
 
  3.225.  The legislation on copyright contains provisions regulating the collective management of 
copyright and related rights.195 Collective management bodies must be authorized by the Minister 
of Education in order to engage in their activities. They are obliged to agree, with any person who so requests, the concession of non-exclusive author izations for the intellectual property rights they 
manage, in accordance with the rates they themselv es fix. The royalties collected must be shared 
among the owners of the works or productions used in proportion to their use. 
3.226.  Law No. 20.435 introduced changes as regards mediation and arbitration in relation to 
collective rights management bodies and the ra tes they may fix. There are several collective 
management bodies in Chile
.196 The rates are determined by the management bodies, through the 
governing body designated in their Statutes, an d may differ according to the category of user. 
Alternative tariff plans may be fixed or special rates as a result of the signature of contracts with 
users' associations, which any user belonging to the same category may join. Nevertheless, since 
2010 it has been determined that, in the case of associations with their own legal status 
representing users of copyright or related rights, if no agreement on the amount of the rates has 
been reached with a collective management body, this shall be done through a non-adversarial 
mediation procedure, whose decision shall be binding on both parties. If mediation is unsuccessful, the dispute may be put to arbitration. 
3.3.5.5  Enforcement 
3.227.  Both the Industrial Property and Intellectual Property Laws contain provisions on 
infringement of intellectual property rights. The scope of these provisions has been amplified as a result of the amendments made to these laws. Depending on the offence, the infringement of 
intellectual property rights may lead to criminal sanctions (imprisonment or fines) and/or civil 
penalties (compensation for injury). The Industrial Property Law defines the offences against rights in trademarks, patents, utility models, industrial designs, integrated circuits and geographical 
indications and determines the respective fines, allo wing confiscation of the tools or elements used 
to commit the offence for the benefit of the right holder, as well as the destruction of the articles produced illegally. In Chile, infringements of industrial property rights are not punishable by 
imprisonment; however, imprisonment does exist for violation of the Intellectual Property Law, 
which defines offences against copyright and related rights and underlines that such offences may result in a fine and/or term of imprisonment. Infr ingement of the rights of breeders of new plant 
varieties is also punishable by a fine or imprisonment. 
3.228.  The penalties to be imposed in cases of intellectual property offences were amended by 
Law No. 20.435 of 2010. The aim was to impose stricter punishment for infringement of copyright and related rights. The amount of the fines was th erefore raised and they are decided by a judge. 
Fines range from 5 to 2,000 UTM (the equivalent of the maximum is US$137,792). In addition, the 
terms of imprisonment were increased, from 1 day to 10 years in the most serious cases. In general, imprisonment depends on the injury caused; if the amount of the injury caused is less 
than 4 UTM, the penalty is imprisonment of any length or a fine of 5 to 100 UTM; if the amount of 
the injury caused is 4 UTM or more but less than 40 UTM, the penalty is short-term imprisonment of minimum length and a fine of 20 to 500 UTM; when the amount of the injury is 40 UTM or more, the penalty is short-term imprisonment of minimum length (61 to 540 days of 
imprisonment) and a fine of 50 to 1,000 UTM. The penalties for publishing, reproducing or 
distributing a work falsely bearing the name of th e authorized publisher, removing or changing the 
name of the author or the title of work, or modifying the text, are short-term imprisonment of 
minimum length and a fine of 10 to 1,000 UTM. Short-term imprisonment of minimum length and 
a fine of 50 to 800 UTM await any person who sells or leases directly to the public copies of works, performances or phonograms, irrespective of the medium, reproduced contrary to the law's 
provisions, while any person who for profit manuf actures, imports, brings into the country or 
commercially distributes copies of such products shall be punishable by short-term imprisonment of medium or maximum length and a fine of 100 to 1,000 UTM.
197 If any of the offences covered 
                                               
195 Title V, Articles 91 to 102 of Law No. 17.336. 
196 The Chilean Performers' Society, the Literary Rights  Society, the Collective Management Body for the 
Rights of Chilean Audiovisual Producers, the Association of National Theatre, Cinema and Audiovisual Authors, 
the Management Society for Creators of Fixed Images, the Chilean Actors' Corporat ion, and the Collective 
Management Body for Producers of Phonograms and Videograms. 
197 Short-term imprisonment of medium length is 541 to 818 days while maximum length is 819 
to 1,095 days. WT/TPR/S/315 • Chile 
 
- 96 - 
 
  by the law is repeated, the maximum penalties applicable to each offence shall be imposed and 
the fine may not be less than double the previous fine, with a maximum amount of 2,000 UTM. 
3.229.  Both Law No. 19.912 and the Intellectual Pr operty Law authorize the use of border 
measures. If an offence against industrial property rights, copyright or related rights has been 
committed or there are justified reasons for thinking that an offence is being committed, the 
owners of the rights may request the civil courts to suspend customs clearance of the goods. If the 
suspension is to continue, the owner of the right must submit a request within ten days following 
notification of the suspension of clearance. The customs authority may also suspend clearance of 
goods ex officio for a maximum of five days when it is obvious that the goods bear a counterfeit trademark or infringe copyright, in which case this must be notified immediately to the owner of the right. The authorities have indicated th at in 2013 over 2,215,689 units of goods which 
infringed intellectual property were withheld. The value of the goods over this period is 
not available. 
3.230.  Since January 2008, Chile has had a special police brigade for investigations into 
infringement of intellectual property (the Intellectual Property Crimes Unit (BRIDEPI)). Together 
with the National Customs Service, it carries out operations to defend and protect intellectual property rights, as well as training its staff in detecting new forms of piracy and smuggling of 
articles infringing intellectual property. There are also education campaigns on the value of 
intellectual property. According to information prov ided by the authorities, during the period under 
review there was a noticeable decrease in the number of intellectual property cases coming before the FNE, which fell from 6,030 in 2009 to 2,809 in 2013. 
3.231.  Chile's legislation provides for the international exhaustion of rights. It therefore allows 
parallel imports for all intellectual property rights. The Industrial Property Law provides that patents do not give the right to prevent third pa rties from marketing the product covered by the 
patent if they acquired it lawfully after the product was legally introduced into trade in any country 
by the owner of the patent or by a third party, wi th the owner's consent. Likewise, the registration 
of a trademark does not authorize the owner to prohibit third parties from using it on products 
legally marketed in any country by the owner or  with his express authorization. As regards 
copyright and related rights, the legislation provides that the first sale or other transfer of ownership in Chile or abroad exhausts the right of national and international distribution in respect 
of the original or the transferred copy of the protected work. WT/TPR/S/315 • Chile 
 
- 97 - 
 
  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture, forestry and fishing 
4.1.1  Agriculture and forestry 
4.1.1.1  Main characteristics and objectives 
4.1.  Agriculture is a sector of great importance for Chile, due to its significant contribution to 
merchandise exports and employment. Chile enjoys a solid comparative advantage in agriculture, thanks, among other things, to its geographical lo cation in the Southern hemisphere which leads 
to counter-seasonal production, and the diversity of its climate, which enables production to 
be diversified. 
4.2.  In 2014, agriculture (including livestock and forestry but excluding fishing) contributed 3.9% 
of GDP in current pesos, which is greater than in 2009 (2.8%) (Table 4.1). However, since 2009 
the sector's growth has been erratic due to the global financial crisis, climate problems and the 
earthquake of 2010. The sector continues to be an important source of employment, absorbing 8.6% of the economically active population in 2014. 
Table 4.1 Main indicators for the fore stry and agriculture sector, 2009-2014 
 2009  2010  2011  2012 2013 2014  
Share of GDP (% at current prices) 2.8  2.7 2.8 2.6 2.7 3.9  
Share of GDP (% at constant 2003 prices) 2.8 2.7 2.8 2.6 2.6 3.4 
Real growth rate (%, at 2003 prices) -4.3  0.3 10.5 -2.0 4.7 1.0  
Employment (% of total employment, end of period)  10.2 10.6 9.7 9.7 8.5 8.6 
Agricultural exports (WTO definition)       
in US$ million 7,876  8,908  10,340  10,688 11,595 11,748  
as % of total exports 14.2  12.5 12.7 13.7 15.1 15.3  
growth rate (%) -9.3 13.1 16.1 3.2 8.7 1.3 
Agricultural exports (SITC Rev.3 definition)       
in US$ million 14,363  15,779  18,905  18,842 20,772 22,081  
as % of total exports  25.9  22.2 23.2 24.2 27.1 28.8  
Agricultural imports (WTO definition)       
in US$ million 3,197  4,157  5,401  5,804 5,969 6,002  
as % of total imports 7.5 7.0 7.2 7.2 7.5 8.3 
growth rate (%) -24.2  30.0 29.9 7.5 2.8 0.5  
Agricultural imports (SITC Rev.3 definition)       
in US$ million 3,419  4,594  5,987  6,386 6,568 6,601  
as % of imports 8.0 7.8 8.0 8.0 8.3 9.1 
Source: WTO Secretariat estimates, based on the Comtra de Database (SITC Rev.3), and Central Bank of Chile. 
4.3.  According to information provided by the authorities, during the review period, the most 
dynamic products were fruit, wines, seeds and timber plantations. This is reflected in the Chilean 
export offer since the principal export products are fruit, which in 2013 accounted for around 38% 
of agricultural exports, softwoods (18.7% of agricultural exports) and wine (12.4%). The authorities consider that the dynamism of ag ricultural exports during the period 2009-2014 
was largely due to market opening, which created a scenario of competitiveness for the sector. 
Chile continues to be a net exporter of agricultural products. In 2014, agricultural exports (WTO definition) made up 15.3% of total exports (Table 4.1). The main markets for agricultural products are still the United States followed by China and Japan. Agricultural imports come 
mostly from the South American region. In 2014,  Chile imported mainly oil-seeds (17.9%), 
bovine meat (15.6%) and cereals (15%).
1 
4.4.  Chile has a bimodal agriculture, with a relatively small number of large holdings on which the 
majority of the country's agricultural output is produced. The rest is grown on small farms, which 
contribute relatively little to agricultural production. Accordingly, in agriculture public expenditure is directed at the small farmer, the most economically disadvantaged group with poor access to 
                                               
1 WTO Secretariat estimates, based on the Comtrade Database (SITC Rev.3). WT/TPR/S/315 • Chile 
 
- 98 - 
 
  markets. Support for agriculture has the dual  objective of improving the small farmer's 
competitiveness and hence his income.2 
4.5.  The opening-up of the Chilean economy has focu sed mainly on the sectors based on natural 
resources and the policies applied have had very po sitive effects, particularly where agricultural 
and fishery exports are concerned. Chile has become the world's second largest salmon producer 
and its fourth largest wine exporter. Despite this positive trend, the process of modernizing the agricultural sector is far from complete, since not enough has been invested in the rural 
infrastructure and some regions are lagging behind in innovation and business initiative, which has 
prevented them from taking advantage of opportunities for growth.
3 For example, despite the 
existence of abundant water resources in some part s of the country, there is a water shortage in 
the central and northern parts of Chile, where most of the mining and farming, activities that 
consume large amounts of water, is carried out. Ther efore, in order to increase the availability of 
water, Chile is in the process of building reservoirs and small regional dams and introducing methods of making more efficient use of the resource and crop varieties that require less water. 
4.6.  During the review period, Chilean agricultural policy focused on promoting competitiveness 
and innovation, including small-scale agriculture, as well as on maintaining a transparent and open domestic market. In particular, the principal st rategies for 2014-2018 include: the strengthening 
and improvement of the plant and animal health regulations; and the development and upgrading 
of the production chains and distribution systems through improved interministerial coordination. 
4.7.  The Ministry of Agriculture is the main institution responsible for formulating and 
implementing agricultural policy through its various services. The Office for Agricultural Studies 
and Policy Development (ODEPA) is responsible for collecting market information and production 
and foreign trade statistics and supporting foreign trade policy, as well as collaborating in the formulation of agricultural policy through studies and analysis. The Institute for Agricultural 
Development (INDAP) helps Small-Scale Family Ag riculture (AFC) to access extension systems and 
support for innovation, as well as financing programmes (loans and incentives) for working capital and investment; INDAP also promotes the expans ion and improvement of AFC's conditions of 
access to local, regional, national and international markets by seeking to bring the producer and 
end consumer closer together. The Agricultural and Livestock Service (SAG) is the body responsible for sanitary and phytosanitary protection, as well as for renewable natural resources; the SAG is also required to facilitate export and import trade and to supervise the process of 
certification of export products. The National Forest Corporation (CONAF) is the entity responsible 
for promoting the sustainable use of the country's forest resources, administering the instruments for the development of forestry and promotin g the generation of environmental services. 
The Chilean Agency for Food Quality and Safety  (ACHIPIA) is responsible for designing and 
implementing national food safety policy. Other bo dies subordinate to the Ministry of Agriculture 
include: the National Irrigation Commission (CNR),  the Institute for Agricultural Research (INIA), 
the Foundation for Agricultural Communication, Training and Culture (FUCOA), the Natural 
Resources Information Centre (CIREN), the Found ation for Agricultural Innovation (FIA), the 
Forestry Institute (INFOR), and AGROSEGUROS. 
4.1.1.2  Policy instruments 
4.1.1.2.1  Border measures 
4.8.  Average tariff protection for agricultural products (WTO definition) was maintained at 
practically the same level during the review period, falling slightly from 6.1% in 2009 to 6% 
in 2014 (Table 3.2).
4 This fall was due to the abatement of the protection for poultry meat.5 
At present, tariff protection for all agricultural products stands at 6%, if the protection that would result from applying the price band system is disregarded. In accordance with this system, and 
on the basis of a formula, the tariff applicable to wheat, wheat flour and sugar 
(41 HS 2012 8-digit subheadings) would be calcul ated either by adding a specific duty to 
                                               
2 OECD (2014), OECD Rural Policy Reviews: Chile 2014 , OECD Publishi ng. Viewed at: 
http://dx.doi.org/10.1787/9789264222892-en . 
3 Ibid. 
4 The 6% rate was used for prod ucts subject to price bands. 
5 The rate of 12.5% applied to poultry meat (12 tariff lines of the HS 2007) was reduced to 6% in 2013 
(information provided by the authorities). WT/TPR/S/315 • Chile 
 
- 99 - 
 
  the MFN ad valorem  tariff, if the reference price falls below the lower limit of the price band, or by 
applying a tariff rebate, if the reference price exceeds the band's upper limit. 
4.9.  Considering the bound tariff as a maximum of the ad valorem  duty for those products which 
are subject to price bands, in 2014, the maximum average tariff for agricultural products 
was 7.2% (Section 3.1.4.2). However, according to  the information provided by the authorities, 
the tariff applied to the products subject to price bands during the period 2009-2014 was 0%. At the end of 2014, the Price Band System was evaluated and it was decided that it would 
continue to be maintained as a means of protection against international price fluctuations for 
small-scale family farming, which largely depends on the cultivation of beetroot and wheat, products which the authorities consider to be subject to distortions and large price fluctuations when traded on international markets. 
4.10.  During 2009-2013 imports of products subject to price bands, with the exception of 
wheat (HS 100190) and cane sugar (HS 170111), declined or were non-existent as in the case of beet sugar (HS 17011200) (Table 4.2). Moreover, th e products subject to the price band system 
have tariff bindings higher than the mode. In the Uruguay Round, with some exceptions (1.5% of 
total tariff lines), Chile bound its entire Tariff at 25%. Agricultural products which were not bound at 25% were bound at 31.5% and comprise 99 tariff lines (HS 2012 8-digit subheadings). 
These lines include various dairy products, wheat an d wheat flour, oil-seeds and oleaginous fruits, 
and vegetable fats and oils. Cane or beet sugar (six 8-digit tariff lines in the HS 2012) was bound at a rate of 98% following a process of rectification under Article XXVIII of the GATT.
6 
Table 4.2 Imports of products su bject to price bands, 2009-2014 
HS 2007 Description Imports 
(US$ million) 
2009  2010  2011  2012 2013 2014  
 Wheat 
100190 Other  160.7  152.2  214.8  280.6 308.0 223.6  
 Wheat flour 
110100 Wheat or meslin flour 6.3 3.1 1.4 2.9 1.9 2.7 
 Cane or beet sugar and chemica lly pure sucrose, in solid form 
170111a Cane sugar 0.3 0.4 10.1 45.9 66.1 67.1 
170112a Beet sugar n.a.  n.a. 0.0 n.a. n.a. n.a.  
170191b Containing added flavouring or colouring 
matter 0.0 0.0 0.0 0.0 0.0 0.0 
170199b Cane sugar, refined 264.0  263.1  372.2  280.7 217.2 169.8  
170199b Beet sugar, refined 
170199b Other 
n.a. Not available. 
a Products subject to tariff quotas. b Products subject to preferential tariff quotas. 
Source: WTO Secretariat estimates, based on the Comtrade Database (SITC Rev.3). 
4.11.  Sugar is also subject to MFN and preferential tariff quotas. Chile maintains an MFN tariff 
quota of 60,000 tonnes per year for refined cane or beet sugar (HS 1701.9910, HS 1701.9920 and 
HS 1701.9990). The authorities have pointed out that during the period 2009–2014 
the MFN quotas were not used, since owing to the price band system the applied tariff for these products was 0% (Table 3.4).
7 Sugar imported under preferential tariff quotas must be used as an 
input in the preparation of food products for the domestic market and this preparation must 
involve a change in tariff heading. An individual importer can make use of a maximum of 20% 
of the total tariff quota.8 The quota allocation is proportional to the total amount of sugar actually 
processed and used as an input in the manufacture of food preparations destined for the domestic 
market by each of the producers. Producer s who use 20% of the total industrial sugar 
                                               
6 WTO document G/MA/TAR/RS/82 of 30 October 2001. 
7 WTO documents G/AG/N/CHL/33 of 12 May 2010; G/AG/N/CHL/36 of 27 May 2011; G/AG/N/CHL/38 
of 4 May 2012 and G/AG/N/CHL/42 of 24 June 2013. 
8 Viewed at: http://www.aduana.cl/aduana/site /edic/base/port/contingente.html . WT/TPR/S/315 • Chile 
 
- 100 - 
 
  consumption will have an allocation equal to 20% of the total quota, the maximum amount that 
can be allocated individually.9 
4.12.  Within the context of the trade agreements it has signed, Chile has negotiated other 
preferential tariff quotas, for products such as beef and veal, poultry meat, pigmeat and dairy 
produce (Table A3.3). The tariffs applicable to these preferential quotas vary according to 
the agreement. 
4.1.1.2.2  Other measures 
4.13.  According to the notifications received by the WTO, during the period 2009-2013 Chile did 
not subsidize any exports of agricultural products.10 
4.14.  The authorities consider that the dynamism of Chile's agricultural (and fishery) exports is 
largely due to trade liberalization, which has obliged the various industries to modernize and take 
the steps necessary to be able compete on the international market. The Chilean State has 
supported this effort by facilitating the access of safe and wholesome agricultural products to the international market, by ensuring the health of animals and plants. Animal and plant safety is a 
priority for Chile and therefore both imports and ex ports are subject to strict sanitary checks with 
control systems extending from the border or from the place of production, as the case may be, to ensure traceability. 
4.15.  The other export support programmes are aimed at internationalizing SMEs and innovative 
enterprises, encouraging participation in international fairs, promoting specific products and protecting intellectual property rights. To this en d, ProChile is implementing programmes such as: 
Flavours of Chile (support for exports of Chilean foods and beverages) and the Chilean Wine Tour 
(dedicated to the promotion of Chilean wine abroad), together with others to support the creation 
and launch of sectoral brands, for example, Pisco Ch ile, Chile Salmon and Fruits from Chile, to gain 
recognition for a particular sector. ProChile also offers guidance and training services for exporters, 
carries out market surveys and provides informat ion for potential exporters. Moreover, ProChile 
runs a programme for facilitating and promoting access to the international markets for goods and services produced by small-scale family farming. 
4.16.  ProChile also manages specific co-financing programmes for the promotion of forestry and 
agricultural exports, such as the Agriculture and Forestry Fund. Through this Fund, ProChile offers 
co-financing to both exporters and potential ex porters for any activity required to promote 
exports (Section 3). The authorities have noted that during the period 2009-2014 ProChile 
provided some US$47 million in financing through the Forestry and Agriculture Fund. 
4.17.  In 2011, as a means of differentiating Chilean products on the international market, 
Chile implemented the Seal of Origin programme, wi th a view to promoting the use and protection 
of Chilean products through the registration of a geographical indication (GI) or appellation 
of origin (AO), collective marks and certification marks. The programme is intended to promote production by protecting the quality and reputation of genuine typical Chilean craft or agricultural 
and forestry products. By December 2014, five geographical indications, three appellations of 
origin, six certification marks and four collective marks had been registered. In addition, several applications were being processed (Section 3.3.5.3).
11 
4.18.  Public expenditure on agriculture has fo cused on encouraging competitiveness and 
productivity, with the emphasis on improving the re turn on small-scale farming. During the period 
2009-2013 central government budgetary expenditure on the agricultural sector amounted to around Ch$1,615 million. 
4.19.   The Ministry of Agriculture has implemented a series of programmes to facilitate access to 
financing for small-scale family farmers and SMEs, designed to meet the sector's various needs. The Ministry is offering a series of financing, promotion, technical assistance and/or training 
                                               
9 Exempt Resolution No. 4.062 of 29 October 2003, as amended by Exempt Resolution No. 2.897 
of 5 July 2005. 
10 WTO documents G/AG/N/CHL/32 of 12 May 2010; G/AG/N/CHL/35 of 27 May 2011; 
G/AG/N/CHL/39 of 14 May 2012; G/AG/N/CHL/41 of 21 June 2013 and G/AG/N/CHL/45 of 6 August 2014. 
11 Information provided by the authorities and online information: http://www.sellodeorigen.cl . WT/TPR/S/315 • Chile 
 
- 101 - 
 
  facilities (Table A4.1).12 Public expenditure on agriculture continues to be targeted mainly at 
irrigation, soil reclamation, rural development, land management and financing.13 M o s t  o f  t h e  
programmes are being implemented by the Institute for Agricultural Development (INDAP), one of the Ministry of Agriculture's subordinate bodies , whose objective is to promote the economic, 
social and technological development of small-scale family farming.
14 To this end, INDAP is 
implementing programmes for promoting the prod uctive and technological development of the 
small-scale farmer.15 
4.20.  Chile has notified the WTO of a series of programmes as measures exempt from 
reduction (green box) or considered to fall below the agreed de minimis  level. The measures 
notified during the review period (2009-2014) were the same as during the previous period (2003-2008) and concern general support services, direct payments to producers, and disaster 
relief payments.
16 
4.21.  Comercializadora de Trigo S.A. (COTRISA), the only State trading enterprise17, 
was established for the general purpose of reducing the distortions due to structural defects 
present in the markets and, according to the auth orities, to support the application of the Price 
Band Law. For example, since the 2010/2011 harvest, COTRISA has implemented a public policy of support for domestic agriculture called the "Wheat Purchases Plan", aimed at maintaining fair 
and competitive domestic prices (Section 3.3.3).
18 
4.22.  In addition to the support programmes, since 2014, various initiatives have been introduced 
to create markets for goods produced by the small-scale farmer, such as: the development of a seal for small-scale farming products, the shortening of the distribution chains between the 
producer and the consumer, and the promotion of agriculture's participation in government 
procurement. Thus, it is hoped that family farming could become a major supplier of public food markets, in particular within the context of the School Meals Programme (PAE).
19 
4.23.  Chile subsidizes the premiums on agricultural insurance policies that provide cover for 
weather risk, the death of bovine animals and damage to infrastructure caused by fire and other risks. In general, the State pays 50% of the net insurance premium plus a fixed amount of 1.5 UF 
per policy, with a maximum of 80 UF per farmer per farming season. However, for cereals 
(rice, grain oats, grain barley, rye, grain maize, wheat and triticale), the amount paid by the State 
is 75% of the net premium, plus a fixed amount of 0.6 UF per policy, with a maximum of 80 UF per farmer per farming season. In 2014, the average subsidy per policy was 7.72 UF and 
75% of policies were taken out by small-scale farmers. 
4.24.  In 2013, a total of 98,782 hectares were insured (or 7% of the land used for production). 
Although there has been an increase in the number of hectares insured since insurance was 
introduced in 2000, the use of insurance, despite th e subsidy available, is still low, since only 7% 
of the hectares in production (crop farming and fr uit growing) are insured. At present, only 3 of 
the 22 general insurance companies established in Chile offer agricultural insurance. The Chilean 
small farmer also has access to another form of insurance called "wheat and maize price cover", 
the purpose of which is to reduce the risk of international price fluctuations. The State subsidizes 50%, plus 1.5 UF per policy, with a ceiling of 80 UF per farmer per farming season. In 2012-2013, the 350 policies taken out were used to insure some 298,000 metric quintals of 
                                               
12 Further information concerning the different programmes can be foun d online by visiting: 
INDAP ( http://www.indap.cl ); CONAF ( http://www.conaf.cl ) and FIA ( http://www.fia.cl ). 
13 INDAP's various programmes can be viewed online at: 
http://extranet.indap.cl/Pro gramasdeindap/default.aspx . 
14 INDAP Organic Law No. 18.910 of 3 February 1990 (latest amendment 10 October 2014). 
15 INDAP defines the small-scale farmer as a natura l person who farms an area of not more than 
12 hectares with basic irrigation, whose assets do not exceed the equivalent of 3,500 UF, who works the land 
directly and whose income comes mainly from farming. 
16 WTO documents G/AG/N/CHL/34 of 27 May 2011; G/AG/N/CHL/37 of 4 May 2012; G/AG/N/CHL/40 of 
10 June 2013 and G/AG/N/CHL/43 of 6 August 2014. 
17 WTO document G/STR/N/15/CHL of 25 September 2014. 
18 Viewed at: http://www.senado.cl/site/pres upuesto/2013/cumplimiento/Glosas 
2013/quinta_subcomision/13 Agricultura 2013/ORD.N%C2%B0 121/Glosas 3 Trimestre/Programa 01/Glosa 
N%C2%B0 12/Informe Resumen Prog rama de Compras de Trigo.pdf ) ; and WTO document G/STR/N/15/CHL 
of 25 September 2014. 
19 NDAP (2014), Lineamientos estratégicos 2014-2018 . Viewed at: 
http://indap.gob.cl/extras/lineamientos-estrategicos-2014-2018-vf.pdf . WT/TPR/S/315 • Chile 
 
- 102 - 
 
  grain maize (equivalent to some 2,000 cultivated hectares) and 7,000 metric quintals (equivalent 
to 100 cultivated hectares) of wheat. The authorities have noted that insurance was not used in 2014. 
4.1.2  Fishing 
4.25.  Chile has a 4,300 km long coastline and within its exclusive economic zone there are highly 
productive eco-systems. These have endowed the country with almost unique advantages as a producer of highly valued fishery resources in great demand on world markets, enabling it to 
position itself among the top ten fishery resource producers in the world. 
4.26.  Fishing's share of GDP remained stable during  the review period (2009-2014), oscillating 
between 0.4% and 0.5%. Although the sector's cont ribution to GDP may not seem very significant, 
fishing is one of Chile's most important sectors in terms of exports and regional development, 
since it is in the more remote regions that the main species are mostly produced (Table 4.3). 
Table 4.3 Main indicators for the fisheries sector, 2009-2014 
Indicator 2009  2010  2011  2012 2013 2014  
Share of GDP (% at current prices) 0.4  0.5 0.5 0.5 0.4 0.4  
Real growth rate (%, at 2003 prices) -14.2  -0.2 21.3 5.2 -12.7 5.3 
Employment (% of total, end of period) 0.8  0.6 0.6 0.7 0.6 0.7  
Exports (% of total)a 4.8 3.6 4.4 4.5 5.4 6.5 
Exports (% of total)b 5.4  4.0 4.8 4.9 5.8 6.9  
Exports (% of total)c 7.6 5.3 5.8 5.9 6.9 8.2 
a HS Chapter 3. 
b According to SITC Rev.3. c Information provided by the authorities. 
Source: WTO Secretariat estimates, based on the Comtrade Database (SITC Rev.3), and Central Bank of Chile. 
4.27.  Chile is a net exporter of fishery resources. In 2013, fisheries sector exports accounted for 
about 5% of the country's total exports. Aquaculture contributes 56.6% of exports and caught fish the rest. In October 2014, fishing and aquaculture exports totalled US$5,159 million, an increase 
of 19.7% as compared with the same period in th e previous year. This figure also represents an 
increase of 7% with respect to the average for the period 2009-2014. In 2014, export volume amounted to 1.1 million tonnes, an increase of 6% on the previous year and 15.7% higher than 
the average for 2009-2014.
20 
4.28.  In 2014, Chile exported 93 kinds of fishery resources. The 8 main resources accounted 
for 86.7% of the total value of fishing and aqua culture exports. Atlantic salmon is the most 
important export resource, accounting for 50.3% of the total value of fishing and aquaculture 
exports. In 2014, the value of Atlantic salmon exports amounted to US$2,593 million, followed by 
rainbow trout and Pacific salmon.21 
4.29.  Chile's fisheries exports are quite heavily co ncentrated in terms of their destination. 
Although at the end of October 2014 Chile was exporting to 110 destinations, just 9 of them were 
absorbing 77.8% of the total exported, in value term s. The United States is still the sector's main 
trading partner, with 26.7% of the total value bein g exported there in 2014, an increase of 24.9% 
on 2013. The second most important market is Japan, which accounted for 18.8% of the total, 
followed by Brazil, China and the Russian Federation. 
4.30.  One of the most important changes in the fish eries sector since the last review is the 
amendment, in 2013, of the General Law on Fi shing and Aquaculture of 1991, which included 
provisions for ensuring the sustainability of hydrobiological resources. In particular, the conditions of access to industrial and small-scale fishing activities were modified and new provisions for 
                                               
20 Undersecretariat of Fisheries (2014), Informe sectorial de pesca y acuicultura : December 2014. 
Viewed at: http://www.subpesca.cl/publicaciones/606/articles-86569_documento.pdf . 
21 Undersecretariat of Fisheries (2014), Informe sectorial de pesca y acuicultura : December 2014. 
Viewed at: http://www.subpesca.cl/publicaciones/606/articles-86569_documento.pdf . WT/TPR/S/315 • Chile 
 
- 103 - 
 
  supervising fishery resources were included.22 In the aquaculture subsector the most important 
changes concerned environmental and health issues.23 By virtue of Supreme Decree No. 72 
of 13 June 2011, the sanitary requirements for importing hydrobiological species were adapted to the OIE risk analysis. 
4.31.  The Undersecretariat of Fishing and Aquaculture of the Ministry of the Economy is the 
agency responsible for formulating fishing and aqua culture policy. The Undersecretariat is divided 
into various services with different mandates. These include: the Fisheries Administration Fund 
(FAP), responsible for promoting and developi ng small-scale fishing and for implementing 
programmes for the surveillance, supervision and administration of activities associated with small-scale and recreational fishing; the Fi shing and Aquaculture Research Fund (FIP), 
which finances studies needed to underpin the adoption of fishery and aquaculture management 
measures; the National Fishing Council (CNP), re sponsible for providing the Undersecretariat of 
Fishing with opinions, recommendations and technical reports on all the matters indicated in the General Law on Fishing and Aquaculture; and the National Fisheries Service (SERNAPESCA), 
which verifies compliance with the fishing and aquaculture regulations, provides services to 
facilitate their implementation, and is responsible for the sanitary supervision of the sector. Other bodies involved with the sector include: the Institute for the Promotion of Fishing (IFOP); 
the National Aquaculture Commission; the Management Committees for the various species; 
and the Zonal Fishing Councils.
24 
4.32.  The amendment of the General Law on Fishing and Aquaculture led to the establishment of 
new subordinate bodies such as the Scientific and Technical Committees for Fishing and the 
Scientific and Technical Committees for Aquaculture. The Management Committees determine the 
range within which the global catch quota can be fixed, previously the responsibility of 
the National Fisheries Council. Quotas are now established on the basis of purely scientific 
variables, which mainly take the conservation objective into account, whereas previously other 
variables were considered. Because of this change, in 2014 the quotas for all fishery resources were reduced on average by 37%. 
4.33.  Chile has four types of regime for granting access to fishery resources: (i) a general access 
regime; (ii) a regime for species being fully exploited
25; (iii) a recovering fisheries regime; 
and (iv) an incipient fisheries regime. For each regime there is a different fishing permit: for the general access regime fishing authorizations are granted; for the fully exploited fisheries regime 
licences are granted; and for the recovering and incipient fisheries regimes special permits are 
granted. 
4.34.  Persons interested in engaging in industrial  fishing within the framework of the general 
access regime must, for each vessel, request a fish ing authorization from the Undersecretariat of 
Fishing and Aquaculture. The fishing-boats must be registered in Chile, in accordance with the provisions of the Shipping Law. If the applicant is a natural person, he must be a Chilean or a 
foreigner with a permanent residence permit, and if the applicant is a legal person, it must be 
lawfully established in Chile. These authorizations are granted when the following requirements are met: valid evidence of ownership of the vessel for which a fishing authorization is requested; identification of the hydrobiological species it is intended to exploit and the fishing area in which it 
is proposed to catch fish; identification and characteristics of the vessel to be used; and 
specification of the fishing method, system or gear to be employed. The application may be rejected on natural resource management grounds.
26 
4.35.  Valid fishing authorizations issued under the general access regime can be transferred into 
authorizations for the regime for species being fully  exploited, in the event of the fishery units for 
                                               
22 General Law on Fishing and Aquaculture (Law No. 18.892 of 1989 and its amendments) was last 
amended by Law No. 20.657 of 2 January 2013. The consolidated, coordinated and codified text of Law No. 18.892 of 1989 and its amendments can be viewed online at: http://www.subpesca.cl/normativa/605/articles-516_documento.pdf . 
23 Law No. 20.434 of 8 April 2010. 
24 Undersecretariat of  Fishing and Aquaculture. Viewed at: 
http://www.subpesca.cl/institucional/602/w3-propertyname-539.html . 
25 In fisheries subject to the full exploitation regi me, annual global catch qu otas, applicable from the 
following calendar year, may be fixed for each fishery unit. 
26 Article 19 of the General Law on Fishing and Aquaculture (Law No. 18.892 of 1989 and its 
amendments). WT/TPR/S/315 • Chile 
 
- 104 - 
 
  which the general regime authorization is held being declared to be in a state of full exploitation. 
These authorizations will be transferable with the vessel, where these fishery units are concerned
27, and are indivisible. Once the full ex ploitation regime has been declared, 
the acceptance of applications and the granting of fishing authorizations will be suspended. 
New operators are admitted to fisheries under the full exploitation regime only through the 
transfer of authorizations already granted. 
4.36.  Overexploited fisheries are declared to be in the recovering fisheries regime.28 When a 
fishery is declared to be in the recovery regime, all the fishing authorizations relating to that 
fishery expire. In this case, the Undersecretari at of Fishing may only award, by competitive 
bidding, the right to catch, each year, the equivale nt, in tonnes, of 10% of the global industrial 
catch quota.29 However, before the auction is held, it has to be determined how the global catch 
quota will be divided up between the small-scale fishing sector and the part of the quota to be 
auctioned. For incipient fisheries, as for recovering  fisheries, each year the Undersecretariat will 
award, by competitive bidding, the right to catch the equivalent, in tonnes, of 10% of the 
industrial fraction of the global catch quota.30 Only 50% of the global quota is auctioned and the 
rest of the global catch quota is reserved for the small-scale fishing sector for a period of three years. 
4.37.  The Ministry, on the basis of a technical report from the Undersecretariat and the Scientific 
and Technical Committee, may establish prohibitions or measures for managing hydrobiological resources. These measures include: (a) a biological closed season by species within a particular area for a specific period of time, initially two years, which may be extended in accordance with 
specified biological indicators; (b) a temporary or permanent ban on the catching of species 
protected under international agreements to which Chile is party; and (c) the establishment of annual catch quotas by species within a specified area or global catch quotas. The global catch 
quotas may be fixed for periods of up to three years, with the annual catch volume always being 
established. If the whole of the annual catch is not caught, the remainder cannot be carried over to the following year (Article 3.1). 
4.38.  In fisheries subject to the full exploitation regime annual global catch quotas may be 
established for each fishery unit. The annual global catch quotas may be distributed over two or more periods of the year and may not be amended, unless there is new scientific data to justify the change. Holders of industrial fishing authorizations, in full exploitation fisheries in which a 
global catch quota has been established, are granted Class A transferable fishing licences or 
transferable individual quotas (CIT), which replac ed tradable fishing licences (LTP). Whereas the 
LTPs did not expire, the Class A licences are valid for 20 years, renewable, and indicate the 
percentage of the global quota allocated to industrial fishing.
31 This percentage is progressively 
decreasing, so as to transfer fishing rights to other holders, but never by more than 15% of the 
original share. According to the law, if a fishery is at a level equal to or greater than 90% of its 
maximum sustainable yield, 5% of the industrial fraction quota will be auctioned off, when it 
reaches 95% another 5% will be auctioned off, and when it reaches 100% an additional 5%. This 
system enables other operators to obtain access to fishery resources. Holders who obtain authorization to exploit the fishery resource throug h auctions obtain a Type B transferable licence 
valid for 20 years, at the end of which they are re-auctioned. So far, no auction has been 
                                               
27 "Fishery unit" is taken to mean the industrial fish ing of one particular hydrobiological species within a 
specific geographical area. 
28 A recovering fishery is one that is  overexploited and subject to a clos ed season of at least three years 
to enable it to recover and in which it is possible to establish a global ca tch quota. Article 39.3 of the General 
Law on Fishing and Aquaculture (Law No. 18.892 of 1989 and its amendments). 
29 This right is bestowed by means of a special fishin g permit authorizing the persons to whom individual 
catch quotas are awarded to carry out fish catching activiti es for the period of validity of the permit in fisheries 
under full exploitation re gimes or in incipient or  recovering fisheries. 
30 An incipient fishery is one subject to the general acce ss regime in which it is possible to fix a global 
catch quota but in which there are not many participatin g operators or the annual catch is less than 10% of 
the quota (Article 40). 
31 The original participation ratio of each shipowner holding valid fishing authorizations for the fishery 
unit in question is determined by dividing the catches of all the shipowner's authorized vessels corresponding 
to the three calendar years prior to the declaration of the regime by the total catches made during the same period corresponding to all the shipowners with a fishing authorization in  effect at the time. WT/TPR/S/315 • Chile 
 
- 105 - 
 
  organized, since there is still no regulatory framework and the maximum sustainable yields have 
not been determined.32 
4.39.  The new licences of Type A and Type B are co mpletely transferable and not tied to the 
vessel, as were the old licences. Up until 2013, to be able to transfer a licence it was also 
necessary to buy the vessel with the licence. However, ships used for fishing will have to have 
been previously listed in the Ship Register. List ing allows them to operate in the fishery that 
corresponds to the transferable fishing licence or special fishing permit, for a period equivalent to 
the term of that licence or permit. Ships listed in the Ship Register must be registered in Chile. 
If the holder of an authorization or permit is a legal person with foreign capital, the fishing vessels it needs to carry out the activity must be registered in its name. 
4.40.  Every year the holders of fishing authorizations and special permits and of tradable 
licences A and B must pay a single fishing fee for each vessel engaged in fish catching activities. 
Holders of Class A tradable fishing licences will pay, in addition to this fee, a specific tax, the amount of which depends on the number of tonnes they are entitled to catch. 
4.41.  The promotion of small-scale fishing is a main pillar of Chilean economic development 
policy. To this end, there are areas exclusively reserv ed for this activity and a fraction of all global 
quotas is reserved for small-scale fishing. In general, the first five nautical miles of the territorial 
waters and catching fish from Chile's beaches and in its inland waters are reserved for small-scale 
fishing. However, subject to a technical repo rt from the appropriate Zonal Fishing Council, 
industrial vessels may carry out fishing operations in regions reserved for small-scale fishing in order to exploit specific resources. The extraction  of hydrobiological resources from inland waters 
is reserved exclusively for small-scale fishermen. 
4.42.  In order to promote small-scale fishing, the Small-Scale Fishing Promotion Fund has also 
been established. The resources of this Fund are used, among other things, for developing the 
infrastructure required by the sector; training sm all-scale fishermen; and the replenishment of the 
hydrobiological resources exploited by small-scale fishermen and their artificial cultivation.
33 
According to the information provided by the authorities, the Fund's budget for 2009-2014 
was Ch$4,500 million. There is also a series of other fishery promotion programmes (Table A4.2) 
4.43.  Like industrial fishing, small-scale fishing is st rictly regulated in Chile. Thus, by means of an 
Undersecretariat resolution, it is possible to: (a) organize days or periods for catching fish; (b) limit the number of daily fishing trips; (c) distribute the small-scale fraction of the global catch 
quota by region, fleet or size of vessel and ar ea; and (d) redistribute 50% of the uncaught 
balances at the end of each period, by allocating those balances to another region or fishery unit included in the respective global catch quota. 
4.44.  The aquaculture subsector continues to be of majo r importance for Chile since it is one of its 
main export industries. In 2014, the exports of the aquaculture subsector accounted for 53.8% and 77.4% of the volume and total value of fisheries product exports, respectively. The volume of 
aquaculture exports was around 606,800 tonne s and reached a value of US$3,995 million. 
The volume exported was 24.8% higher than in 2013.
34 
4.45.  By carrying out technical studies, the Ministry  of Defence determines the areas appropriate 
for aquaculture and grants aquaculture concessions, subject to an analysis by the Undersecretariat 
and the Environmental Assessment Service (SEA). Th e concessions grant the right to use specified 
national assets, for a period of 25 years renewabl e, to engage in aquaculture-related activities. 
The rights under these concessions may be transferred, leased or conceded. Every year, 
the holders of aquaculture concessions and authorizations pay an aquaculture fee of 2 UTM per 
hectare, except in the case of aquaculture concessions or authorizations for exotic fish, when the fee is 20 UTM per hectare. 
                                               
32 The regulations governing auctions are being draw n up. Nevertheless, the authorities have indicated 
that if the foreign company is lawfully establishe d in Chile, it may participate in the auctions. 
33 The Small-Scale Fishing Promotion Fund is financ ed by contributions from the Undersecretariat of 
Fishing, by other contributions and by 50% of the fines collected for in fringements of the Law on Fishing. 
34 Undersecretariat of Fishing (2014), Informe sectorial de pesca y acuicultura : December 2015. Viewed 
at: http://www.subpesca.cl/publicaciones/606/articles-86569_documento.pdf . WT/TPR/S/315 • Chile 
 
- 106 - 
 
  4.46.  To obtain aquaculture concessions it is necessary to make an application in writing to the 
Undersecretariat. Aquaculture concessions may only be granted to natural persons who are Chilean nationals or foreigners permanently resident in the country and to Chilean legal persons established under Chilean law. If the Chilean legal person is partially foreign-owned, the capital 
investment must have received the prior approv al of the corresponding competent authority. 
There is no reciprocity requirement for foreigners, as is the case with fishing. 
4.47.  Through the Fisheries Research and Aquaculture Fund (FIPA), the Undersecretariat finances 
the fisheries research and aquaculture projects ne cessary to determine the measures that need to 
be taken to conserve hydrobiological resources, taking into account the economic and social, as well as the biological, aspects. Other programmes that Chile has implemented have been focused on investment in human capital and fishing productivity. For example, during the review 
period Chile implemented programmes for supporting the victims of natural disasters, supporting 
fishing industry workers, and promoting the us e of insurance and non-conventional renewable 
energies (NCRE). 
4.2  Mining 
4.2.1  General characteristics and main products 
4.48.  Mining is of fundamental significance for Chile. The mining sector is one of the most 
important in the Chilean economy with an 11. 2% share of GDP at current prices in 2014.
35 The 
general mining production index, a measure of th e industry's performance, rose by 10.8% during 
the period 2009-2013. The mining sector is a capi tal-intensive sector and its contribution to 
employment is considerably lower than its contribu tion to GDP. The sector employed 0.94% of the 
country's total labour force during 2013.36 
4.49.  Moreover, the mining sector is Chile's principal export sector and the main destination for 
foreign investment in the country. High international mineral prices have contributed to this. The 
leading export product is copper (Table 4.4). During the decade 2004-2013, foreign investment in 
mining (under Decree Law No. 600) accounted for 37.1% of the foreign capital invested in Chile, totalling more than US$47,000 million.
37 
Table 4.4 Main mining product exports, 2009-2014 
(US$ million; f.o.b.) 
Mining product 2009 2010  2011  2012  2013 2014  
Metal mining       
Coppe r 26,271.1  39,217.1  43,614.2  41,779.4  39,737.8  37,968.3  
Gold 910.7  1,047.0  1,486.6  1,678.2  1,416.2  1,087.0  
Molybdenum 1,360.5  1,627.6  1,889.1  1,669.7  1,176.9  1,618.3  
Iron 560.0  1,110.3  1,618.5  1,348.4  1,375.8  1,140.2  
Silver 313.1  368.6  652.0  509.6  379.9  195.5  
Zinc 19.7 45.1 47.1 42.8 33.6 51.1 
Total exports 
Metal mining 29,435.2  43,415.7  49,307.5  47,028.1  44,120.2 42,060.4  
Non-metal mining       
Iodine 361.6  407.5  658.7  907.0  842.1  693.0  
Saltpetre 129.0  156.6  130.1  209.4  117.9  127.2  
Lithium carbonate 114.7  174.4  204.1  247.0  225.8  228.7  
Sea and table salt 122.0  112.8  150.2  102.4  119.2  173.2  
Sodium sulphate 0.0 0.0 0.0 0.0 0.3 0.0 
Natural borates, unrefined 5.1 5.5 9.2 15.4 11.6 9.0 
Siliceous meals 2.6 0.0 0.0 0.5 0.5 0.4 
Other 29.0 55.4 137.1  199.5  145.4  224.4  
Total exports 
Non-metal mining  735.0 856.8  1,152.3  1,481.7  1,317.4 1,231.5  
Mining exports (Total) 30,199.2  44,327.9  50,596.9  48,709.3  45,583.0  43,516.3  
Source: Central Bank of Chile and Chilean Copper Commission (COCHILCO). 
                                               
35 Statistical Database of the Central Bank of Chile. Viewed at: http://www.bcentral.cl . 
36 Chilean Copper Commission (COCHILCO) (2014), Anuario de Estadísticas de l Cobre y Otros Minerales, 
1994-2013 . Viewed at: http://www.cochilco.cl/descargas/estadisticas/anuarios/AE2014.pdf . 
37 Chilean Copper Commission (COCHILCO) (2014), Anuario de Estadísticas de l Cobre y Otros Minerales, 
1994-2013 . Viewed at: http://www.cochilco.cl/descargas/estadisticas/anuarios/AE2014.pdf . WT/TPR/S/315 • Chile 
 
- 107 - 
 
  4.50.  In 2014, mining products accounted for 56.8% of total exports, with sales having an f.o.b. 
value of more than US$43,516.3 million.38 Clearly, metals generate the great majority of the 
export earnings of the Chilean mining sector. Table 4.5 shows the mining products that make a 
substantial contribution to the country's exports. Copper stands out as the foremost 
export product. 
Table 4.5 Mining's shar e of exports, 2009-2014 
(% of total exports) 
Mining product 2009 2010  2011  2012  2013 2014  
Copper 50.2 56.1 53.6 53.4 51.4 49.5 
Gold 1.7 1.5 1.8 2.1 1.8 1.4 
Iron 1.1 1.6 2.0 1.7 1.8 1.5 
Molybdenum 2.6 2.3 2.3 2.1 1.5 2.1 
Silver 0.6 0.5 0.8 0.7 0.5 0.3 
Iodine 0.7 0.6 0.8 1.2 1.1 0.9 
Other 0.8 0.9  0.9 1.0 0.8 1.1  
Total Mining 57.7 63.5 62.2 62.2 58.9 56.8 
Source: COCHILCO. 
4.2.1.1   Copper 
4.51.  Copper is Chile's primary export product and an important generator of value added. Copper 
production accounted for 9.8% of GDP in 2013 and an estimated 10.1% in 2014.39 Chile is the 
world's largest copper producer and supplier, with  a total output of 5.75 million tonnes of mined 
copper in 2014, a level similar to that of the previous year.40 Chile's mining industry is responsible 
for 31.5% of global production41 and it is estimated that the country possesses about 28% of 
world copper reserves.42 The Chilean National Copper Corpor ation (CODELCO-CHILE), a Chilean 
State-owned enterprise, is the world's larges t refined copper producer, with an output 
of 1.79 million tonnes in 2013. In 2013, the mining industry generated f.o.b. copper exports worth 
more than US$39,700 million.43 Exports contracted slightly in 2014, amounting 
to US$37,968.3 million or 87.3% of the total mining sector exports.44 
4.52.  The main destination for Chilean copper exports during the review period was the 
Asian continent, where in 2014 some 71.8% of the total was concentrated. The leading destination for copper exports is China, with 38.7% of the total in 2014. The second largest market 
is Japan (13.3%), followed by the Republic of  Korea (8.3%), India (6.2%) and Brazil (5.7%) 
(Table 4.6). 
Table 4.6 Chilean copper exports, by  country of destination, 2009-2014 
(% estimated) 
Destination 2009 2010  2011  2012  2013 2014  
Germany 2.4 0.8  1.4 1.6 1.2 1.2  
Belgium 1.6 2.2 1.0 1.2 1.0 0.6 
Bulgaria 1.4 0.6  0.7 0.7 1.1 1.1  
Spain 2.1 1.6 2.1 1.9 1.9 2.5 
                                               
38 Chilean Copper Commission (COCHILCO) (2015), Boletín Mensual Electrónico COCHILCO, 
February 2015. Viewed at: http://www.cochilco.cl/productos/boletin.asp?anio=2015&mes=02&tabla=tabla18_1 . 
39 Statistical Database of the Central Bank of Chile. Viewed at: http://www.bcentral.cl . 
40 Annual Report 2013-2014 of the Chilean Nation al Mining Company (SONAMI). Viewed at: 
http://www.sonami.cl/digital/memoria/memoria20132014  and Chilean Copper Co mmission (COCHILCO) 
(2015), COCHILCO Monthly Electronic Bulletin, February 2015. Viewed at: 
http://www.cochilco.cl/productos/boletin.asp?anio=2015&mes=02&tabla=tabla21 . 
41 Chilean Copper Commission (COCHILCO) (2014), Anuario de Estadísticas de l Cobre y Otros Minerales, 
1994-2013 . Viewed at: http://www.cochilco.cl/descargas/estadisticas/anuarios/AE2014.pdf . 
42 US Department of  the Interior, US Geological Survey, Mineral Commodity Summaries 2014 . Viewed 
at: minerals.usgs.gov/minerals/pubs/mcs/2014/mcs2014.pdf . 
43 Chilean Copper Commission (COCHILCO) (2014), Anuario de Estadísticas de l Cobre y Otros Minerales, 
1994-2013 . Viewed at: http://www.cochilco.cl/descargas/estadisticas/anuarios/AE2014.pdf . 
44 Chilean Copper Commission (COCHILCO) (2015), COCHILCO Monthly Electronic Bulletin, 
February 2015. Viewed at: http://www.cochilco.cl/productos/boletin.asp?anio=2015&mes=02&tabla=tabla18_2 . WT/TPR/S/315 • Chile 
 
- 108 - 
 
  Destination 2009 2010  2011  2012  2013 2014  
France 3.7 2.6  2.4 2.1 1.7 2.2  
Netherlands 4.1 3.4 4.4 2.6 3.0 2.2 
Italy 3.1 4.5  4.4 3.5 2.7 3.1  
Other 2.2 2.4 1.8 2.3 1.0 1.1 
Total Europe 20.4 18.0  18.2 15.9 13.6 14.0  
Brazil 5.2 5.8 5.3 5.2 6.1 5.0 
Canada 1.2 0.5  0.2 0.2 1.1 1.1  
United States 5.6 4.4 6.4 7.3 8.4 5.7 
Mexico 1.3 1.8  1.4 0.5 0.4 0.3  
Other 0.7 0.8 0.7 0.7 0.4 0.3 
Total America 14.0 13.3  14.0 13.8 16.4 12.4  
South Korea 7.9 7.4 7.5 7.2 7.7 8.3 
China 32.9 32.6  32.1 30.9 36.9 38.7  
India 3.1 3.8 4.0 5.9 5.1 6.2 
Japan 9.9 11.8  13.1 13.0 12.5 13.3  
Chinese Taipei 3.8 3.8 3.7 3.4 3.1 3.4 
Other 2.2 2.3  2.6 2.6 2.7 1.9  
Total Asia 59.7 61.7 63.0 63.0 68.0 71.8 
Other continents 5.8 7.0  4.7 7.3 2.1 1.8  
Total 100.0 100.0  100.0  100.0  100.0 100.0  
Source: COCHILCO. 
4.2.1.2  Other metals 
4.53.  Production of the main non-copper metals (chiefly molybdenum, gold, silver, iron and zinc)45 
mostly rose steadily, albeit moderately, during the period 2009-2013, a trend which in most cases 
continued into 2014. Particularly noteworthy is the increase in iron mining, which more than doubled in volume during the period, aided by the rise in international prices (Table 4.7). 
Table 4.7 Non-copper metal production, 2009-2014 
(By weight) 
Product 2009 2010  2011  2012  2013 2014  
Molybdenum (tonne 
refined)  34,924.9  37,185.5  40,889.3  35,089.9  38,715.4 48,770.2  
Gold (kg refined)  40,834.0  39,494.0  45,137.0  49,936.0  51,309.0  44,155.5  
Silver (kg refined)  1,301,018  1,286,688  1,291,272  1,194,521  1,173,845  1,575,148  
Lead (tonne refined) 1,511.0  695.0  841.0  410.0  1,829.0  n.a. 
Zinc (tonne refined)  27,801.0  27,662.0  36,602.0  26,762.0  29,759.0  n.a. 
Iron (000 tonne ore)  8,242.3  9,129.5  12,624.6  17,330.1  17,108.9  n.a. 
n.a. Not available. 
Source: COCHILCO. 
4.2.2  Policy objectives and legal and institutional framework 
4.54.  The Ministry of Mining is the authority responsible for national mining policy. The SEREMIs 
(Regional Ministerial Secretariats) represent the central government in all of the country's various regions. For implementing its mining policy the Ministry relies on two technical advisory bodies: 
the National Geology and Mining Service (SERNAGEOMIN) and the Chilean Copper Commission 
(COCHILCO). SERNAGEOMIN assists the Government and the courts in regulating and supervising mining safety and sustainability and in granting mi ning concessions, in addition to drawing up the 
Geological Map of Chile and keeping the mining co ncession and mining land registers. COCHILCO 
advises the Government on the formulation, implementation and monitoring of policies for the sustainable development of the mining sector, supervises CODELCO and ENAMI, advises the Ministers for Mining and Finance on the budgets of these enterprises, without prejudice to its 
subsequent audit, and evaluates their investment projects jointly with the Ministry of Social 
                                               
45 Chilean Copper Commission (COCHILCO) (2014), Anuario de Estadísticas de l Cobre y Otros Minerales, 
1994-2013 . Viewed at: http://www.cochilco.cl/descargas/estadisticas/anuarios/AE2014.pdf . WT/TPR/S/315 • Chile 
 
- 109 - 
 
  Development in accordance with the respective laws46, monitors compliance with the regulations 
on the marketing of copper and its byproducts and other mineral substances, and provides technical advice to State bodies such as the Foreign Investment Committee with regard to mining investment contracts and the Internal Revenue Service with regard to financial results, 
the analysis of records for determining taxable income and the specific tax on producers. 
4.55.  The policies programmed by the Ministry of Mini ng include: supporting the growth of mining 
and mining investment; supporting the developmen t of small and medium-scale mining through 
specific promotion and market development policies; implementing specific measures to stimulate 
public-private cooperation in order to boost activity in the industry; and laying down strategic guidelines for improving the performance of the enterprises and public directorates for which it is responsible.
47 
4.56.  Given the importance that Chile attaches to mining, mines cannot be privately owned. 
The Political Constitution of the Republic stip ulates that the Chilean State is the absolute, 
exclusive, inalienable and imprescriptible owner of all mines on the national territory. Without 
prejudice to the above, a system of concessions en ables minerals to be exploited and explored by 
private individuals, with equal treatment for domestic and foreign investors. The Chilean State plays a preponderant part in mineral production, especially copper mining, through two State 
enterprises: the National Copper Corporation (CODELCO) and the National Mining Company 
(ENAMI). The former is the world's largest produc er of refined copper, with sales of more than 
US$14,000 million in 2013.
48 For its part, ENAMI is a producer while at the same time working 
actively to promote small and medium-scale mining. 
4.2.3  Regulatory framework for investment in mining 
4.2.3.1  General framework 
4.57.  The 1980 Constitution, the Mining Code (Law No. 18.248 of 26 September 1983) and the 
Constitutional Organic Law49 on Mining Concessions (Law No. 18.097 of 7 January 1982) constitute 
the regulatory framework for the mining industry. This legislation lays down the conditions of access and the requirements which must be met to obtain an exploitation or exploration 
concession. Both types of concession may be granted for all metallic and non-metallic minerals 
and, in general, for any fossil substance, including deposits located under the seabed that can be accessed from land by means of tunnels. The concessions regime does not extend to liquid or gaseous hydrocarbons, lithium, deposits of any kind in maritime waters subject to national 
jurisdiction or situated in areas identified by law as important for national security, without 
prejudice to previously acquired exploitation or exploration rights. 
4.58.  For those deposits that cannot form the subject of a concession, the Chilean State may 
conclude special operating contracts for a specified term, which allow domestic or foreign 
operators to extract a particular mineral or fossil substance. As they do not form part of the concessions regime, the conditions of access to these contracts are fixed by Supreme Decree
50, 
on a case-by-case basis. At present, contracts of this type are being granted for the extraction of 
fossil substances such as petroleum. 
4.59.  The Chilean State reserves the right of first refusal (at market price) with regard to the 
purchase of mining products having a significant thorium or uranium content, developed or 
extracted from mining operations located in the country.51 
4.60.  Mining exploitation and exploration concession s are dealt with under an ordinary procedure 
before the civil court with jurisdiction over the concession area, which receives technical assistance 
                                               
46 Decree Law No. 1.350/1976, Law on CODELCO, and Decree with Force of Law No. 153/1960, 
Law on ENAMI. 
47 Ministry of Mining. Viewed at: http://www.minmineria.gob.cl/ministerio/mision-institucional . 
48 National Copper Corporation (CODELCO), Memoria Anual 2013 , online information. Viewed at: 
http://www.codelco.com/principales-indicadores/memoria2013/2013-04-16/102238.html . 
49 A law which for its approval, amendment or repeal  requires the support of  four sevenths of the 
deputies and senators in office (57.1%). 
50 Issued by the Office of the President of th e Republic, for matters within its competence. 
51 Article 10, subparagraph 1 of the Mining Code. WT/TPR/S/315 • Chile 
 
- 110 - 
 
  from SERNAGEOMIN and rules without decisory intervention by any other body or person.52 
The process ends with the judicial decision of the court by means of which the concession is granted. Once the court has ruled, it is for the beneficiary to take the administrative action required by law, including publication in the Official Mining Bulletin to prevent infringement of the 
rights of third parties. Exploration concessions are valid for two years, once renewable for the 
same period of time on condition of relinquishment of the exploration of at least half the total area of the concession.
53 On the other hand, exploitation concessions remain valid indefinitely as long 
as the corresponding licence fees are paid.54 These fees are paid in the form of an annual charge 
whose amount depends on the area of the concession. The rate amounts to 0.1 UTM55 for each 
complete hectare, in the case of an exploita tion concession, and 0.05 UTM for the same area, 
in the case of an exploration concession.56 
4.61.  The main principles that govern the taxation of mining investment in Chile are: 
non-discrimination with respect to other economic sectors; neutrality with respect to the factors 
that regulate the economy; territoriality with respect to taxable income; taxation of profits and not 
resources; and the existence of a mechanism that taxes most of the income when it is withdrawn 
or distributed.57 
4.62.  In addition to the basic tax system, since 2006 the Chilean legislation has provided for a 
specific mining tax (IEM) on extraction and production operations, applicable to the operating 
income of the mine operator.58 The tax rate is variable and depends on the total value of annual 
sales. Those mine operators with annual sales equivalent in value to up to 12,000 tonnes of 
refined copper are exempt from the tax. The averag e value of the copper is calculated on the basis 
of the price recorded during the corresponding period on the London Metals Exchange. For an 
equivalent value of more than 12,000 and up to 50,000 annual tonnes a progressive and rising marginal rate of 0.5% to 4.5% is applied. The actual rates vary between 0% and 1.93%. 
4.63.  Since its last review in 2009, Chile has introduced a change in the IEM which exclusively 
concerns those producers whose annual sales volume exceeds 50,000 tonnes. This amendment, adopted in 2010, introduces a progressive rising marginal rate proportional to the mining 
operating margin for large-volume copper mining.
59 The maximum effective rate for this tax 
amounts to 14% for a mining operating margin higher than 85%, while the minimum is 5%. Those taxpayers who voluntarily availed themse lves of the 2006 IEM regime and signed the 
corresponding invariability contract are not subject to the new regulations.
60 A majority of 
enterprises have opted for the latter and amen ded their contract accordingly. Generally, 
for business years 2010-2012 a table scheme based on the operating margin, with effective IEM rates of between 4% and 9% was applied; fr om 2013 and up to the end of the original 
invariability (2017) the rate will be 4%; and once the invariability has ended, the rate under the 
new general regime (with effective rates between 5% and 14%) will be applied, with six years of invariability. 
4.2.3.2  Specific conditions for foreign investment in mining 
4.64.  Foreign investment in mining is possible under the Foreign Investment Statute 
(Decree Law No. 600), with the guarantees offered therein (Section 2.6). The period available for 
entering the investment capital is 8 years, with the possibility of an extension up to 12 years, 
subject to authorization by the Foreign Investment Committee and only in the case of investment 
                                               
52 SERNAGEOMIN (2010), Guía de Constitución de  Concesiones Mineras de Explotación y Exploración . 
Viewed at: http://www.sernageomin.cl/pdf/mineria/nor mativa/guia_constitucion_concesiones.pdf . 
53 Article 112, Mining Code. 
54 Article 17, Constitutional Organic Law on Mining Concessions (Law No. 18.097). 
55 The Monthly Tax Unit (UTM) is a unit of account used  in Chile for the payment of taxes and fines. It is 
adjusted monthly in Chilean pesos to take account of inflation. On 1 July 2014, the exchange rate 
was 1 UTM =US$76. 
56 Article 142, Mining Code. 
57 Circular issued by the Internal Revenue Service, the agency responsible for tax collection. Viewed at: 
http://www.sii.cl/contribuyentes/empresas_por_sector/mineria.pdf . 
58 Mine operating income is that directly generate d by the mining activity, excluding non-operating 
items. 
59 Article 64 bis, Decree Law No. 824 of 1974 (Income Tax Law), as amended by Law No. 20.469 
of 2010. 
60 Law No. 20.026 of 2006. WT/TPR/S/315 • Chile 
 
- 111 - 
 
  that requires prior exploration. Mining companies cannot avail themselves of the tax benefits of 
free zones or obtain access to export financing programmes. The tax reforms contained in Law No. 20.780 specified that Decree Law No. 600 would be repealed from 1 January 2016 in the event of a new framework law on foreign investment entering into force. If the new framework 
law has not entered into force on that date, Decree Law No. 600 will be automatically extended 
until that condition is satisfied. 
4.65.  Foreign investors receive national treatment for mining investments, except where there are 
special considerations relating to national sovereignty. In this connection, foreign natural or legal 
persons are not allowed to purchase, lease or acquire any other title to State lands situated within 10 kilometres of the national frontier or within 5 kilometres of the coast.
61 This is a general 
restriction and does not apply only to mining investments. 
4.66.  The statute contained in Decree Law No. 600 offers two tax options for the mining 
taxpayer62: (i) the option of an invariable fixed rate of 42% as the total tax charge, 
whose invariability is guaranteed for a period of between 10 and 20 years depending on the 
volume of investment63; or (ii) the ordinary tax regime. The latter comprises three taxes. The first 
is the First Category Tax (Corporate Tax, fixed at 20% of the taxable income subject to Law No. 20.780, plus the Additional Tax on the remittance of profits, which applies to the 
Chilean-sourced capital income of legal persons non-resident in Chile (fixed at 35% and recognized 
as a credit against the total First Category Tax). The joint application of the two taxes may not exceed 35%. The third tax is the Specific Mining Tax (IEM), which is deductible from the tax base for the First Category Tax. When making an investment under Decree Law No. 600, the foreign 
investor signs with the Chilean State an agreement that ranks as a "contract-law". As in a private 
agreement, this contract cannot be amended unilaterally by either of the parties.
64 
4.2.4  Mining sector policies fo r economic development 
4.67.  The law establishing the Copper Reserve (Law No. 16.624 of 1967), a mechanism for giving 
domestic manufacturers access to the metal to meet  their production demands, remains in force. 
COCHILCO is responsible for defining the conditions of access to that mechanism, on the basis of 
an annual list of authorized companies. The benefit is available to manufacturers of primary 
products such as: wire rod, tubes and sheets; finished products, such as cables; chemical 
products, such as copper-based fungicides; castings and certified alloys. In 2013, 10 companies took advantage of this mechanism, by means of which the domestic manufacturing industry 
acquired a total of 94,000 tonnes of refined copper,  or 1.93% of that year's total production.
65 
4.68.  In 2010, the amendment of the IEM included th e establishment of the Regional Investment 
and Reorganization Fund (FIRR), intended to finance regional and municipal development projects. 
The FIRR seeks to benefit the regions directly, mainly those with a higher level of mining activity, 
and forms part of the public policies for the decentralization of the State.66 In accordance with the 
Law, during the period 2011-2014, the FIRR provided annual support for regional governments67, 
allocating one third of its resources to the country's mining regions, in accordance with duly 
established criteria, and distributing the remain ing two thirds among all the regions. Under the 
FIRR Regulations (Supreme Decree No. 746, published on 9 July 2011), the development works to be financed from FIRR resources may include any ki nd of investment project that can be financed 
under the regulations that govern the regional go vernments. The latter are authorized to transfer 
the resources to the municipalities, either directly or through the Undersecretariat of Regional and Administrative Development, for the same kind of  works, as authorized by the annual budget law. 
                                               
61 Decree Law No. 1.939 of 1977. 
62 Circular of the Internal Revenue Service, the agency responsible for tax collection. Viewed at: 
http://www.sii.cl/contribuyentes/empresas_por_sector/mineria.pdf . 
63 Articles 7 and 11 bis of Decree Law No. 600. 
64 Foreign Investment Committee on line information. Viewed at: 
http://www.ciechile.gob.cl/es/dl-600/derechos-que-otorga-el-dl600; viewed on 15.07.2014. 
65 Chilean Copper Commission (COCHILCO) (2014), Anuario de Estadísticas de l Cobre y Otros Minerales, 
1994-2013 . Viewed at: http://www.cochilco.cl/descargas/estadisticas/anuarios/AE2014.pdf . 
66 Article 3 of Law No. 20.469. 
67 Ministry of Finance online information. Viewed at: http://www.hacienda.gov.cl/sala-de-
prensa/noticias/historico/ministros-de-hacienda-y-244.html . WT/TPR/S/315 • Chile 
 
- 112 - 
 
  4.3  Energy 
4.69.  Chile is a net importer of energy and depends on imports for about 60% of its primary 
energy consumption.68 The Government is continuing to implement systems for stabilizing the 
domestic prices of certain fuels. 
4.3.1  General characteristics 
4.70.  Private companies, domestic and foreign, are authorized to participate in all energy sector 
activities without limitation. In practice, the State enterprise ENAP dominates most hydrocarbon 
exploitation, production and refining. 
4.71.  In 2013, the energy industry (which includ es electricity, gas, petroleum and fuels) 
accounted for 2.8% of Chile's GDP (at constant 2008 prices) and employed 0.6% of the total labour force, according to information from the Chilean National Statistical Office. Gross 
primary energy production amounted to 126,018 teracalories in 2012.
69 In 2013 Chile 
exported 6,251 teracalories of coal and 9,975 teracalories of petroleum products. 
4.72.  Chilean primary energy consumption in 2013 can be broken down as follows: petroleum and 
petroleum products (30.0%), wood and biomass (29.0%), coal (22.2%), natural gas (13.5%), 
hydroelectricity (5.0%) and wind, solar and biogas (0.2%) (Table 4.8). According to National Energy Audit figures, in 2013 Chile imported 59.3% of its gross energy consumption, a fall of one 
percentage point with respect to the previous year. 
Table 4.8 Production, importation and consumption of primary energy, 2013 
(Teracalories) 
Energy source Gross 
production Imports Exports Stock variation 
(Losses) Gross 
consumption 
Crude petroleum 3,532 91,063  0 -2,195 96,791  
Natural gas 11,505 36,584  0 2,510 45,579  
Coal 3,737 62,329  0 -427 66,493  
Hydroelectricity 17,336 0 0 0 17,336  
Wind 351 0  0 0 351  
Wood & biomass 89,299 0 0 521 88,778  
Solar 185 0  0 0 185  
Biogas 72 0 0 0 72 
Total 126,018 189,976  0 408 315,586  
Source: National Energy Audit 2013, Ministry of Energy. 
4.3.2  Institutional and regulatory framework 
4.73.  Since its last review, Chile has undertaken certain institutional reforms in the energy sector. 
Law No. 20.402, which entered into force on 1 Febr uary 2010, established the Ministry of Energy, 
which replaced the former Committee of Ministers of the National Energy Commission. From its 
establishment and up to 2014, the Ministry had six Regional Ministerial Secretariats (SEREMI). On the basis of Law No. 20.776, published on 22  September 2014, which amended and improved 
its governing law, the Ministry of Energy increa sed the number of SEREMIs to 15, one per region. 
The Ministry of Energy has concentrated in its own hands the regulatory powers in the field of energy previously exercised by the Ministries of Mining and the Economy. The Ministry of Energy 
directs national energy policy, formulates and co ordinates plans, policies and rules for the smooth 
functioning and development of the sector and mo nitors compliance, while issuing the appropriate 
concessions and decrees, when the legislation so requires. 
4.74.  The energy sector's institutional framework is completed by three other institutions which 
work in coordination with the Ministry: the National Energy Commission (CNE), the Electricity and 
Fuels Supervisory Authority (SEC), and the Chilean Nuclear Energy Commission (CCHEN). The CNE is responsible for the technical analysis of the system, for regulating prices and the level of the 
                                               
68 Government of Chile (2014), Agenda de Energía . Viewed at: http://www.minenergia.cl. 
69 Ministry of Energy (CNE) (2014) Balance Nacional de Energía, 2013 . Viewed at: 
http://www.minenergia.cl/documentos/balance-energetico.html . WT/TPR/S/315 • Chile 
 
- 113 - 
 
  tariffs for energy goods and services, and for formulating the technical and quality standards that 
govern energy installations, as well as for advising the Ministry on matters relating to the operation and regulation of the energy sector.
70 The SEC is the supervisory body responsible for 
overseeing due compliance with the technical and legal regulations that govern the electricity and 
fuels sector, thereby ensuring the quality of the service provided for users and the safety 
standards laid down in the regulations.71 The CCHEN is the body that regulates, authorizes and 
supervises category 1 nuclear and radioactive sources and their operators. 
4.75.  In addition, the Ministry of Energy forges links with other relevant entities such as the 
recently established National Centre for Sustainable Energy Innovation and Development (CIFES), the successor of the Renewable Energy Centre (C ER), which is responsible for the design and 
implementation of programmes and projects for pr omoting the production and use of sustainable 
energies. The competent authorities, namely, the National Economic Prosecutor's Office (FNE) 
and the Tribunal for the Defence of Free Competition (TDLC), supervise the operation of the energy markets, particularly the electricity transm ission and distribution markets. The TDLC rules 
on matters relating to competition law and plays a preponderant role in the context of a highly 
concentrated sector in which prices are subject to specific regulations. 
4.76.  The energy sector has gone through a difficult period during recent years. The stagnation of 
investment projects since 2013 has been compounded by weather factors, such as the repeated 
droughts which have adversely affected the ou tput of the hydroelectric generating plants. 
This, combined with problems with gas imports from Argentina that began in 2004, has forced the industry to resort to diesel or more expensive natural gas imports for generating electricity, 
thereby raising the prices of the latter considerably for both industry and individual users. 
This combination of factors has kept the electricity sector under pressure for some years and has led to recognition of the need for a reformulation of energy policy, both to ensure a sustainable 
long-term energy supply and to diversify the country 's energy matrix. Within this context, in 2014, 
the new Ministry of Energy drew up an "energ y agenda" with the intention of formulating a 
national long-term sustainable energy policy. The Mi nistry of Energy's agenda for the coming years 
seeks to achieve the diversification of the energy matrix, as well as to increase competition in the 
sector and promote the generation of lower-cost electricity in order to maintain the economic growth characteristic of the last decade. The ye ar 2014 saw an increase in generation projects 
under construction: from 28 power plants with a generating capacity of 1,949 MW under 
construction in March to 45 plants with a capacity of 3,527 MW under construction in November. 
4.77.  Within the context of this new energy agenda, the Ministry has set itself several specific 
energy challenges for the next five-year period. The more important of these include: (a) a 30% 
reduction in marginal electricity costs in the Central Grid (SIC) by 2017; (b) a 25% reduction in 
the bidding prices for supplying electricity to pr ivate individuals and small businesses as compared 
with those agreed in the last bidding round in 2013; (c) implementation of the provisions of 
Law No. 20.698 of 14 October 2013, which encourag es the expansion of the energy matrix by 
means of non-conventional renewable sources and increased from 10% to 20% the target for the share of Non-Conventional Renewable Energies (NCRE) in total domestic energy consumption 
by 2025.
72 To achieve this target, the Ministry has set itself the goal of ensuring that 45% of the 
generating capacity installed in Chile in the period 2014-2025 comes from these sources; 
(d) promotion of the efficient use of energy thro ugh the implementation of the Energy Efficiency 
Agenda (EE), which will permit savings of 20% by 2025; (e) the design of a fuel price stabilization 
system, with a view to reducing the volatility of the prices of certain fuels for domestic use in 
Chilean households; (f) strengthening of the National Petroleum Company (ENAP); and (g) the establishment in 2015 of a long-term national ener gy policy endorsed by civil society through a 
participatory and regional process.
73 
4.78.  The authorities are developing legislation to  promote energy efficiency. In March 2015, 
the Interministerial Energy Efficiency Committee, which incorporates officials from nine ministries, was preparing a draft law along these lines which it was hoped would be ready by the 
                                               
70 CNE online information. Viewed at: http://www.cne.cl/institucional/quienes-somos . 
71 Article 2, Law No. 18.410 of 26 April 1985 on the El ectricity and Fuels Supervisory Authority, as 
amended by Law No. 19.613 of 8 June 1999. 
72 Article 150 bis, Law No. 20.698 of 14 October 2013, promoting the expansion of the energy matrix by 
means of non-conventional renewable sources. 
73 Ministry of Energy (2014), Agenda de Energía. Un desafío país, progreso para todos . Viewed at: 
http://www.minenergia.cl/documentos/estudios/2014/agenda-de-energia-un-desafio-pais.html . WT/TPR/S/315 • Chile 
 
- 114 - 
 
  fourth quarter of 2015. According to the Ministry of Energy, among other efficiency measures, the 
draft would include detailed regulations for developing net metering.74 
4.79.  In keeping with the objective of diversif ying energy sources, the Government has 
announced that it will start importing non-conv entional gas (shale gas) from the end of 2015. 
Domestic reserves of non-conventional gas in Chile are calculated at 64 tcf (trillion cubic feet) and, 
according to International Energy Agency estima tes, are the third largest by volume in South 
America and 14th in the world. Although there are no immediate plans for the mass exploitation of 
this resource in Chile, since mid-2011 some natural gas exploitation tenders promoted by ENAP 
(so-called Special Petroleum Operation Contracts or CEOPs) include the obligation to explore and drill at least one shale gas well. The Government does not rule out future tenders and in August 2014 ENAP reported the signature of an  agreement with private parties to carry out 
non-conventional hydrocarbon prospection surveys in the southern region of Magallanes.
75 
4.3.3  Electricity 
4.80.  In December 2013, Chile had an installed power generating capacity of around 17.7 GW, 
an increase of about 35% on the figures for 2009.76 In 2013, a total of 68,514 GWh was 
generated, of which 70.5% was provided by thermal power stations, 28.7% by hydroelectric plants and 0.8% by wind and solar sources. Primary energy consumption could be broken down as 
follows: mining and industry (35.9%), transport (30.7%), the commercial, public and residential 
sector (25.7%) and the energy sector (7.5%).
77 Regulated customers supplied by distribution 
companies account for 56% of consumption, while industrial and mining customers account for the remaining 44%. 
4.81.  As compared with the rest of the region, in Chile the cost of electricity is currently high. 
As a consequence of the restrictions on the delivery of Argentine gas since 2004 and the inadequate volume of hydro and thermal power pr ojects, diesel has become a significant energy 
source for generating electricity, which has markedly raised costs. For example, household 
electricity prices quadrupled between 1998 and 2011.
78 Central Bank studies suggest that the 
large rises in electricity costs during the last deca de have had an adverse e ffect on the productivity 
of domestic industry.79 The authorities consider that in Chile the cost of electricity depends to a 
large extent on the price of the inputs: coal, natural gas and fossil fuels, as well as on the hydrological conditions. In September 2014, the average market price (PMM) of the Central and Great Northern Grids, published by the CNE, was around Ch$58 per kWh. 
4.82.  The Chilean electricity market includes the ge neration, transmission and distribution of 
electricity, all by private companies, both domestic and foreign. The guiding principle for setting tariffs is freedom of pricing, provided that the regulatory authority is satisfied that there is healthy 
competition and equal treatment in the negotiations between buyer and seller. Electricity prices 
must represent the real costs of generating, tran smitting and distributing the electricity. Thus, 
users that consume large quantities of energy  (connected load in excess of 2,000 kW) are 
assumed by the law to be capable of negotiating their prices or to have access to other sources of 
supply or self-generation ("free customers"). On the other hand, the contractual relationship with users who have a smaller load is deemed by the law to be a situation of natural monopoly and is 
                                               
74 Net metering is a scheme by means of which a cu stomer who generates his own electricity can offset 
energy balances instantaneously or on a deferred basi s. Net metering is used mainly by consumers who 
generate small amounts of renewable energy (generally wind or solar) and allows the surplus produced by a 
self-generating system to be fed into the grid and used at another time, t hus enabling users to generate their 
own power stably, without exposing themselves to a supply shortage in the event of a fall in output. 
75 National Petroleum Company press re lease, 5 August 2014. Viewed at: 
http://www.enap.cl/sala_prensa/noticias_detalle/ge neral/754/enap-y-conocophillips-firman-acuerdo-para-
estudiar-potencial-de-hidrocarburo s-no-convencionales-en-magallanes . 
76 Ministry of Energy online information. Viewed at: http://www.minenergia.cl/documentos/balance-
energetico.html . 
77 Ministry of Energy (2014), Balance Nacional de Energía, 2013 . Viewed at: 
http://www.minenergia.cl/documentos/balance-energetico.html . 
78 According to OECD and IEA statistics, in 2011 the co st of household electricity in Chile amounted to 
US$292 per MWh, the fifth highest price among the group of OECD countries in terms of purchasing power parity. Viewed at: http://stats.oecd.org/BrandedView.aspx?oecd_bv_id=eneprice-data-en&doi=data-00442-en . 
79 Álvarez, Roberto, Álvaro García and Pablo García , Shocks de Energía y Prod uctividad en la Industria 
Manufacturera Chilena , Central Bank of Chile Working Documents No. 482 September 2008. Viewed at: 
http://www.bcentral.cl/estudios/documentos.../dtbc482.pdf . WT/TPR/S/315 • Chile 
 
- 115 - 
 
  therefore subject to a regulated tariff ("regulated customers").80 Users with a connected load of 
between 500 and 2,000 kW are free to choose between the two regimes. 
4.83.  In December 2014, the average market price, that is, the average prices of the contracts 
reported by the generating companies to the CNEE, for customers not subject to price regulation 
(free customers) in the Central Grid (SIC), was around Ch$66 per kWh, whereas for regulated 
customers it was around Ch$57 per kWh. For its part, in the Northern Grid (SING) it was around Ch$59 per kWh for free customers and around Ch$71 per kWh for regulated customers. 
4.84.  The General Law on Electrical Services (LGSE)  (Decree with Force of Law No. 1 on Mining 
of 1982, General Law on Electrical Services, in the matter of Electrical Energy), consolidated text 
of 5 February 2007, constitutes the sector's main  regulatory framework. The amendment made to 
the LGSE in 2013 modernized and simplified the procedures and time-limits for granting electrical 
concessions and, moreover, introduced various clarifications to facilitate land valuations and 
third-party observations and make them more transparent, while incorporating an arbitration procedure for use in the event of a dispute.
81 Law No. 20.726 of 7 February 2014 also amended 
the LGSE, with a view to promoting the interconnection of independent electrical systems. 
In addition, in January 2015, the National Congress approved a bill introducing amendments to the 
LGSE to improve the tendering system for the suppl y of electricity for customers subject to price 
regulation, which is now pending enactment. There were no substantial changes in the regulations 
governing the installation of generating capacity during the review period. A concession application 
is not a mandatory requirement for undertaking generating activities, although it usually facilitates the process. As in other industries, el ectrical projects are subject to approval by the 
environmental agencies. 
4.85.  Some 130 generating companies, 14 transmission companies and 31 distributing companies 
participate in the national electricity market. Electricity demand can be broken down territorially 
into four grids: the Northern Grid (SING), the Central Grid System (SIC), Aysén and Magallanes). 
Generating companies may sign long-term supply contracts with distributors and/or large industrial customers, which require them to meet the customer's demand at agreed prices. 
There is a parallel short-term (spot) market, on which the generating companies sell the power 
they produce at marginal prices; its function is to enable these companies to cover the differences between their power generation and their contractual commitments. The short-term operation of the generators connected to a particular grid is planned and decided by the Economic Load 
Dispatch Centre (CDEC), which groups representatives of the generating and transmission 
companies and the large-scale users.
82 
4.86.  The transmission system is composed of tran smission lines, substations and equipment for 
transporting electricity from the point of generation to the consumption or distribution centres.83 
By law, lower voltages are treated as distribution. Law No. 19.940 of 13 March 200484 ensures 
open access to trunk transmission and subtransmission systems and compliance with the service 
obligation. The Law establishes that the transport of electricity through the trunk and 
subtransmission systems is a public electrical service. The public service condition placed on transmission creates an obligation to provide the service to anyone who requests it and makes the transmission company responsible for investing in new lines or extensions.
85 
4.87.  Law No. 20.018 of 9 May 2005, which amends the regulatory framework for the electrical 
sector, requires distributors to sign contracts with the generators who offer to supply power at the best price in public tender proceedings, th ereby protecting the end consumer. Moreover, 
                                               
80 CNE online information. Viewed at: http://www.cne.cl/tarificacion/electricidad/introduccion-a-
electricidad . 
81 Law No. 20.701 of 10 September 2013 (Procedure for Granting Electrical Concessions) amending the 
General Law on Electrical Services (Decree with Force of Law No. 1 of th e Ministry of Mining). 
82 CNE online information. Viewed at: http://www.cne.cl/energias/electricidad/mercado . 
83 In Chile, any line or substation with a voltage or  tension greater than 23,000 volts (V) is considered 
to be intended for transmission. CN E online information. Viewed at: 
http://www.cne.cl/energias/elect ricidad/mercado/ 341-transmision . 
84 Law regulating electrical energy transport systems,  establishing a new tariff regime for medium grids 
and introducing the indicated adjustments to the General Law on Electrical Services. 
85 Open access and the service obligation apply only to trunk transmission and subtransmission 
systems. In the case of additional systems, open ac cess is subject to the fulfilment of certain statutory 
conditions. WT/TPR/S/315 • Chile 
 
- 116 - 
 
  distributors must maintain power supply contracts that enable them to cover the estimated 
consumption of their customers for at least three years ahead. Generating companies may impose a right of way on the available transmission capa city through the payment of tolls. The CDEC for 
each grid is responsible for coordinating the operation between the generating and transmission 
companies. In order to operate, distributors must obtain a concession, which is territorial and 
non-exclusive. 
4.88.  Up until 2011 there was a law that allowed power generating companies to request the 
refund of value added tax paid on diesel oil used to produce energy, within the context of cuts in 
the supply of Argentine gas.
86 At the same time, in view of the high price of electricity, 
Law No. 20.040 of 30 June 2005 empowered the Presid ent of the Republic, by supreme decree, to 
establish a provisional subsidy to help families of limited means pay for their electricity whenever 
prices increased by more than 5% over a six-month period. This power was last used in 2008. 
There are no other assistance programmes. 
4.89.  Law No. 20.257 of 20 March 2008 introduced changes in the LGSE with respect to 
power generation from non-conventional renewable energy sources.87 Law No. 20.698 
of 14 October 2013 amended Law No. 20.257 of 2008, to establish that electricity companies that sell power from the grid must prove to the CDEC that 20% of their annual sales come from 
non-conventional renewable energy sources. As this target has been set for 2025, provisional 
percentages that increase progressively between 2014 and 2024 have also been defined.
88 
Moreover, the Law states that to ensure compliance with the NCRE target, if it is anticipated that the NCRE percentage will not be met, the Minist r y  o f  E n e r g y  w i l l  h a v e  t o  o r g a n i z e  t e n d e r  
proceedings so that private operators can offer bl ocks of energy from new generating projects, 
under a special remuneration regime, with a price guaranteed within a band. 
4.3.4  Hydrocarbons 
4.90.  The National Petroleum Company of Chile (ENAP)  plays a leading role in the exploration, 
production, refining and logistical activities of  the hydrocarbons and fuels industry. ENAP is a 
wholly State-owned enterprise. The rules on the or ganization of ENAP are set out in Law No. 9.618 
of 19 June 1950, whose consolidated, coordinated and codified text was established by Decree 
with Force of Law No. 1 of the Ministry of Mining, published in the Official Journal of 24 April 1987.
89 ENAP is authorized to explore, ex ploit and process hydrocarbon-bearing 
deposits, inside and outside the national territory, either directly or through companies in which it 
has a holding or in association with third parties. If it engages in such activities within the national 
territory through companies in which it has a holding or in association with third parties, it must do so through concessions or special operation contracts, subject to the requirements and under the 
conditions laid down by the President of the Republic.
90 
4.91.  ENAP is authorized by law to carry out petroleum and fuel marketing operations, including 
export and import operations. The Law does not give ENAP monopoly import rights. However, in 
                                               
86 Law No. 20.258 of 2008, which established a provisional mechanism for refunding the specific tax on 
diesel in favour of the power generating companies, was in force from 2008 to 2011, but no new law of a similar nature has been adopted. 
87 More specifically, Law No. 20.257 of 2008 stipulates that as from 2010 electricity companies that sell 
power from the grid will have to prov e to the CDEC that 5% of their annual sales comes from non-conventional 
renewable energy sources; this percentage will incr ease annually up to 10% in 2024. Tax incentives are 
envisaged by way of compensation. 
88 Law No. 20.698 specifies that the obligation referred to in Law No. 20.257 will be 5% up to 2014 and 
then increase annually by 0.5% as from 2015. This progress ive increase will be so applied that sales under the 
obligation made in 2015 will have to meet a 5.5% requ irement, those made in 2016 a 6% requirement and so 
on until 10% is reached in 2024, for contracts signed after 31 August 2007 and before 1 July 2013. For contracts signed after 1 July 2013, the obligation in question will be 5% up to 2013, with increases of 1% as from 2014 until 12% is reached in 2020, with increments of 1.5% as from 2021 until 18% is reached in 2024, and an increment of 2% to arrive at 20% in 2025. Th e tender mechanism will be applicable as from 2015. In 
the event that the regulations are not in force by then, tendering will begin to operate from the following year. 
89 This text has been amended by Law No. 18.888, pu blished in the Official Journal of 6 January 1990; 
by Law No. 19.031, published in the Official Journal of 19 January 1991; and by Law No. 19.657, published in the Official Journal of 7 January 2000. 
90 Decree with Force of Law 1 of the Ministry of Mining of 4 December 1986, published on 24 April 2007, 
determining the consolidated, coordinated and codified text of Law No. 9.618 establishing the National Petroleum Company. WT/TPR/S/315 • Chile 
 
- 117 - 
 
  practice, ENAP is the only crude petroleum importer in Chile, since it is the only operator in the 
industry with refineries. Private-sector enterpri ses do participate in the importation of fuels. 
The refining, distribution, marketing, storage and transport of hydrocarbons are activities whose 
market is freely accessible to private operators,  whereas a concession must be obtained for the 
transport and distribution of natural gas.91 
4.92.  ENAP's exploration and production activities are concentrated in the Magallanes Basin, 
where all the commercial hydrocarbon deposits have been discovered. At present, ENAP is Chile's 
leading gas producer, ranking second where petroleum is concerned. The exploitation and 
exploration of hydrocarbons by the private sector are subject to State authorization and are usually carried out under a Special Petroleum Operation Contract (CEOP). This contract constitutes a delegation of the State's exclusive right to exploit these resources, as established in the 
Constitution.
92 For this reason, the performance conditions are laid down, case by case, in a 
presidential decree. 
4.93.  CEOPs can be obtained by making direct appl i c a t i o n  t o  t h e  M i n i s t r y  o f  E n e r g y  o r  b y  
responding to an invitation to tender issued by the Ministry. In both cases it is the State 
that defines the contract conditions.93 Subject to the specific conditions agreed for each 
tender proceeding, the regulatory framework and general conditions are those laid down in 
Decree Law No. 1.089 of 1975 which, among other guar antees, establishes the free availability of 
foreign exchange for hydrocarbon exports.94 The latest international invitations to tender were 
issued in 2007 and 2010. 
4.94.  In 2007, the Ministry of Mining, through ENAP , put out to tender and awarded nine gas and 
petroleum exploitation and production CEOPs. Expl oration blocks were allocated in the Magallanes 
region for a total minimum investment of US$267 million. The successful bidders included United States, Canadian and French companies. In December 2010, ENAP began inviting 
international companies to participate in five blocks on the island of Tierra del Fuego. This process 
ended in September 2011 with the signing of pa rticipation agreements with several companies 
which had applied to the Ministry of Energy for the conclusion of CEOPs for the blocks in 
question.
95 The signature of these CEOPs involved an investment of more than US$145 million in 
exploration over a three-year period.96 In the first half of 2014 there were 14 CEOPs in force, all in 
the Magallanes area.97 
4.95.  In 2014, national petroleum and fuel production totalled 398,000 cubic metres and natural 
gas production 935 million cubic metres. In 2013, domestic crude production was 135,000 cubic 
metres, covering only 1.3% of total domestic demand.98 According to the authorities, domestic 
production of petroleum and fuel covers less than 5% of domestic demand, the difference being 
made up with imports of both petroleum and fuel. Chile obtains its supply of crude mainly from 
imports made by ENAP, which in 2013 amounted to more than 10.3 million cubic metres. Some 65% of imports come from South America (including 31% from Brazil, 14% from Ecuador 
and 10% from Peru), plus significant contribu tions from Azerbaijan (15%) and Angola (14%).
99 
In 2013, imports of crude oil and petroleum products accounted for 16.8% of the country's total imports and their value exceeded US$15,000 million.
100 
                                               
91 Law on Gas Services and its amendments (Decree No. 323 of the Ministry of Mining of 1931, as 
amended in 1989). 
92 Article 19, No. 24, subparagraph 6 of the Politi cal Constitution of th e Republic of Chile. 
93 Latin American Energy Organization (OLADE), Contratos de Exploración y Explotación de 
Hidrocarburos: América del Sur 2009 . Viewed at: http://temp2.olade.org/documentos2/CONTRATO.pdf . 
94 Article 3, subparagraph 3, Decree Law No. 1.089 of 1975 on special operation contracts for the 
exploration and exploitation or pr ocessing of hydrocarbon deposits. 
95 The companies Geopark, with respect to the bl ocks Isla Norte, Campanario and Flamenco; the 
consortium YPF Chile and Wintershall Chile, with respect to the block San Sebastian; and YPF Chile, with respect to the block Marazzi-Lago Mercedes. 
96 ENAP (2013), Memoria Anual 2012 . Viewed at: http://www.enap.cl/descarga/forzada/776 . 
97 Information about each of these CEOPs and their status at the end of 2013 can be found in: ENAP 
(2014), Memoria Anual 2013 , pp. 158-178. Viewed at: http://www.enap.cl/descarga/forzada/2238 . 
98 Electricity and Fuels Supervisory Authority (SEC), (2014), I nforme estadístico de combustibles 2013 . 
Viewed at: http://www.sec.cl/pls/portal/url/ITEM/F8F88282ACC0F045E040007F01001D6E . 
99 National Energy Commission online information. Viewed at: 
http://www.cne.cl/energias/hidrocarburos/tipos-de-energia/374-cadena-suministro . 
100 WTO Secretariat estimates, based on the Comtrade Database (SITC Rev.3). WT/TPR/S/315 • Chile 
 
- 118 - 
 
  4.96.  Natural gas imports are delivered by sea to the country's two existing liquefied natural 
gas (LNG) terminals. The Quintero LNG terminal supplies the demand from the central zone, while the Mejillones LNG terminal does the same for the large mining industry in the north. The terminals were built and financed by ENAP and a conglomerate of private players (Quintero) and 
by CODELCO (Mejillones) following the interruption of natural gas imports from Argentina, up to 
then the sole source of imported gas. In thes e plants the LNG is processed and re-gasified for 
subsequent distribution. In 2013, total gross consumption of LGN amounted to 
45,680 teracalories, of which 79.3% were imports.
101 The Government is assessing the 
construction of a third LNG terminal in Quintero. In 2013, LNG imports accounted for 1.3% of total 
imports and 14.5% of fuel imports.102 
4.97.  The petroleum products and fuels produced in Chile are refined in ENAP's three refineries on 
national territory, two in the central zone and one in Patagonia.103 In 2013, ENAP sold 11.4 million 
cubic metres of liquid fuel derived from petroleum, which corresponded to a 61.8% market share.
104 The requirements of the national environm ental regulations prevent the marketing of 
some production surpluses such as those of less refined fuel, which are exported by ENAP. 
In 2013, these exports amounted to 1.6 million cubic metres.105 
4.98.  Where distribution and supply are concerned, there are eight significant private companies 
operating in the liquid fuel market, together with the State-owned ENAP and smaller private 
companies, and four in the liquefied ga s market, all with national coverage.106 Concessions must 
be obtained in order to distribute or transport natural gas, with the transporter being required to give free access and the distributor being obliged to  ensure the local supply of the area concerned. 
4.99.  Specific taxes are levied on gasoline and diesel under Law No. 18.502 of 3 April 1986 and its 
amendments.
107 The Specific Tax on Fuels (IEC) has basic rates of 6 UTM per cubic metre for 
gasoline and 1.5 UTM per cubic metre for petroleum, to which a variable component is added. 
The prices of liquid fuels and liquefied gas are governed by the prices quoted internationally 
through import parity, with the addition of bu siness operating costs and margins for determining 
the price. However, Chile operates a fuel price stabilization mechanism to offset international 
fluctuations in the price of crude, by altering the variable component of the IEC. Since the last 
review, the old Fund for the Stabilization of Fuel Pr ices (FEPCO), like the Fund for the Stabilization 
of Petroleum Prices (FEPP) (with the exception of  kerosene), has been replaced by two successive 
stabilization systems, the first applied between January 2011 and July 2014 and the second since 
August 2014.108 In accordance with Article 8 of Law No. 19.030 of 15 January 1991, as amended 
by Law No. 20.493, the only fuel still covered by the old FEPP is domestic kerosene. 
4.100.  Between 2011 and 2014, the Government implem ented the System for the Protection of 
the Payer of the Specific Tax on Fuels (SIPCO). The SIPCO was introduced by Law No. 20.493, 
published on 14 February 2011 to prevent sudden ri ses in the international price of crude being 
immediately passed on to the consumer. Law No. 20.505, published on 17 March 2011, brought 
                                               
101 National Energy Commission (CNE) (2013) Balance Nacional de Energía, 2012 . Viewed at: 
http://www.cne.cl. 
102 WTO Secretariat estimates, based on the Comtrade Database (SITC Rev.3). 
103 ENAP online information. Vi ewed at: http://www.enap.cl. 
104 ENAP (2014 ), Memoria 2013 . Viewed at: http://www.enap.cl/descarga/forzada/2238 . 
105 Ibid. 
106 Three companies control 97.5% of liquid fuel di stribution: COPEC (Chile , 59.5%), the National 
Energy Company (ENEX, Chile, 23.5%) and PETROBRAS (Brazil, 14.1%). Three companies control 99.8% of 
liquid gas distribution: Lipigas (Chile, 37.8%), Abas tible (Chile, 35.4%), and Abu Dhabi Gas Industries 
(Gasco, 26.6%). 
107 Law No. 18.502 of 3 April 1986 established the specific taxes on gasoline and diesel. These are 
expressed in UTM/m3 and calculated as follows: (a) for gasoline, 2 UTM/m3, plus 70% of the difference, 
provided it is positive, between US$233, expressed in pesos, and the selling price, excluding taxes, of 93 octane gasoline, expres sed in pesos per metre
3, which ENAP sells to wholesale distributors; (b) for diesel, 
1.5 UTM/m3, plus 70% of the difference, provided that it is positive, between US$196, expressed in pesos, and 
the selling price, excluding ta xes and per cubic metre, of diesel, expresse d in pesos, paid by ENAP to wholesale 
distributors. The taxes are adjusted if the base price of diesel or 93 octane gasoline varies by more than 2%. 
This law also determined the specific taxes for natural gas and liquefied gas. 
108 The FEPP was set up in 1991.The fund had a limi ted amount of resources which were used to 
moderate rises for gasoline, di esel, kerosene, liquefied gas and fuel oil, although in later years it was restricted 
to the last two. The FEPCO was launched in 2005 and re mained in effect until June 2010. While in existence, 
it was used to moderate rises in motor gasoline, diesel and domestic kerosene. WT/TPR/S/315 • Chile 
 
- 119 - 
 
  forward the SIPCO's entry into force.109 Under the SIPCO, the variable component of the specific 
fuel taxes established by Law No. 18.502 for fuels derived from petroleum was determined by considering the differences with the import parity prices
110, with respect to upper and lower 
reference prices calculated from an intermediate reference price.111 Law No. 20.505 amended the 
formula for calculating the reference price, to enable it to be adapted more rapidly to international 
changes in petroleum prices. The new law made it possible to reduce the importance of future prices in the formula for calculating the reference price. 
4.101.  The Fuel Price Stabilization Mechanism (MEPCO) was created by Law No. 20.765, published 
on 9 July 2014, for the purpose of establishing a mechanism for stabilizing the domestic selling prices of the fuels included in Law No. 18.502. This mechanism operates through increases and abatements in the specific fuel taxes established by Law No. 18.502, which are modified by adding 
to the base component established in that law a variable component (which may be positive or 
negative) determined for each of the fuels auto motive gasoline, diesel, compressed natural gas 
and liquefied petroleum gas. One of the main diff erences with respect to the SIPCO is that the 
MEPCO is in the national currency, thereby avoiding exchange rate fluctuations. 
4.102.  The MEPCO, like the SIPCO before it, is inte nded to prevent transitory price rises and 
cushion the effect of permanent increases. As di stinct from the FEPP and the FEPCO, the MEPCO, 
like the SIPCO before it, is not a subsidy since it is not aimed at totally preventing the rise being 
passed on to the consumer; instead, where there are rises, they are gradually passed on by means of a price band system.
112 By abandoning the method of financing from tax revenues, the new 
mechanism considerably lightens the cost burden on the State, which for the FEPP and the FEPCO 
amounted to US$2,340 million. The MEPCO is applie d to only four fuels: motor gasoline, diesel, 
liquefied petroleum gas for use in vehicles and compressed natural gas for use in vehicles. Like the SIPCO, the MEPCO operates by deducting or adding  a variable component from or to the specific 
tax of Law No. 18.502. The MEPCO has established a reference price band of ±5% with respect to 
the intermediate reference price. The variable component of the specific tax is determined in two stages, one of which involves a comparison between the parity price and a band of reference 
prices, all expressed in the national currency; the se cond stage is the responsibility of the Ministry 
of Finance. 
4.103.  In the first stage, the Ministry of Finance de termines, for a specific date, the "base price" 
for each of the fuels covered by the mechanism. Th e "base price" is an estimate of the price that 
the ENAP will publish in its next weekly bulletin, assuming that the variable component of the 
specific tax is zero, and including the VAT and the base component of the specific tax corresponding to the fuel in question. This "base pr ice" is compared with the price reported by the 
ENAP, in its weekly price report, the previous week, and in this way the preliminary variable 
component of the specific fuel tax is determined.
113 In the second stage, the CNE determines a 
parity price and an intermediate reference price for each fuel covered by the price stabilization 
system. The upper and lower reference prices for a particular fuel may not differ by more than 5% 
from the corresponding intermediate reference price, which is determined by considering the crude petroleum price representative of a significant mark et (Brent posted on the US Gulf Coast), plus a 
refining differential for each product and other costs and taxes necessary to represent the value of 
the corresponding product posted in Chile.
114 The import parity price for each fuel is the weekly 
                                               
109 The law changed the way in which the SIPCO operat es, by bringing forward the entry into force of 
new parameters to deal with a sharp and sudden rise in the price of petroleum. 
110 The weekly price quoted on the significant inte rnational markets for motor gasoline, diesel and 
liquefied petroleum gas and for grades similar to those in use in Chile, with 1 to 4 weeks considered for 
calculation purposes and including transport, insurance and other costs. 
111 Except for compressed natural gas, for which the pric es of liquefied petroleum gas for use in vehicles 
are considered. 
112 Library of the National Congress of Chile online information. Viewed at: 
http://www.bcn.cl/carpeta_temas_pr ofundidad/sipco-sepco-fepp-fepco . 
113 If the difference between the "base price" and the price reported the previous week is positive and 
greater than 0.12 UTM/m3, the difference between the prices is deducted from this amount. If the difference 
between the "base price" and the price reported the prev ious week is negative and greater in absolute value 
than 0.12 UTM/m3, then 0.12 UTM/m3 is deducted fro m the difference. 
114 The crude oil price used in determining the interm ediate reference price of the fuels corresponds to 
the weighted moving average of the w eekly average prices of crude oil on the international market in question, 
in a period of between 4 and 104 weeks beforehand, reckoned from the week in question, and between 3 and 6 months ahead, taking prices on th e futures markets into account. The weighted average is calculated by WT/TPR/S/315 • Chile 
 
- 120 - 
 
  average price observed on a significant market (Gulf Coast US dollars).115 The parity prices and 
reference prices are determined in pesos per cubic metre. The refining differential to be used in determining the intermediate reference price of the fuel is calculated on the basis of the moving 
average of the weekly average pr ices of the respective fuels and the moving average of the 
reference crude price, in a period of between 4 and 104 weeks from the week in question. The 
preliminary variable component determined in the first stage is adjusted for the purpose of ensuring that the parity price plus the variable component of the specific tax does not exceed the 
upper reference price or fall below the lower reference price. 
4.104.  Law No. 20.794, published on 7 November 2014,  extended the coverage of the MEPCO, 
making it possible to define a differentiated spec ific tax for gasolines according to their octane 
number when they are subject on first sale or importation to the specific tax laid down in 
Law No. 18.502 and have a representative price on a significant international market. In practice, 
this involves defining a differentiated tax for 93 and 97 octane gasolines. This change came into effect on 11 December 2014. 
4.105.  The tax on compressed natural gas for use in vehicles is calculated on the amount of the 
tax or credit, as appropriate, for liquefied petroleum gas for use in vehicles in the same period multiplied by 1.5195. This tax or credit will be the variable component of the specific tax on the 
compressed natural gas and will be added to or  deducted from the base component of the tax 
defined in Law No. 18.502. 
4.106.  Law No. 20.765 stipulates that the Ministry of Finance is to make a quarterly estimate of 
the difference in the tax revenue derived from the operation of the MEPCO. If the difference 
between the revenue that would have corresponded to the application of the base component of 
the specific tax and that actually produced exceeds the equivalent in pesos of US$500 million, the variable component of the specific tax must be made to converge on zero, at a rate such that over 
a period of 12 weeks an additional difference greater than the equivalent in pesos of 
US$100 million does not accumulate. Each week, the Ministry of Finance must publish on its official website information relating to: the "base" price, the reference and parity prices determined by 
the Ministry of Energy, and the weekly values of the variable component of the Specific Fuel Tax. 
4.107.  Where the price of grid gas is concerned, transporters and distributors may set tariffs 
freely on the national territory, with the sole exception of region XII (Magallanes and Chilean Antarctica), where the tariffs are regulated.
116 The Law on Gas Services (Decree No. 323 
of 20 May 1931, as amended in 1989) authorizes th e TDLC to request the Ministry of the Economy 
to regulate the tariffs of those users who consume less than 100 gigajoules, if during one year the distributing company's rate of return exceeds by mo re than 5% the cost of capital rate calculated 
by the Ministry of Energy. The Law also re quires that all consumers with comparable 
characteristics should pay the same price. 
4.3.5  Renewable energies 
4.108.  In Chile, among the renewable energies, hydroelectric power generation is the most 
important in terms of volume and infrastructure, accounting for 33.88% of total generating capacity. As far as strictly non-conventional
117 resources are concerned, in December 2013 the 
installed capacity accounted for 5.9% of the national total. 
4.109.  Wind and solar energy, although a minority of  the energy matrix, have grown at a rapidly 
increasing pace in recent years. Between 2012 and 2014, 7 installations were built (bringing the total to 11) and solar generating capacity rose from 9.8 MW in 2012 to 177 MW in the first half of 
2014. 
                                                                                                                                               
applying to the futures market prices a percentage  of between 0% and 50% and applying the remaining 
percentage to the other prices, to make up 100%. 
115 The import parity price of each fuel is fixed weekly  by the Ministry of Energy, subject to a report from 
the CNE, and is calculated by considering the averag e prices observed during the four weeks immediately 
preceding. 
116 Article 34, Law on Gas Services and its amendments (Decree No. 323 of the Ministry of Mining 
of 1931). 
117 In Chile, the main authority in the field (the Renewable Energy Cent re) uses the term NCRE in a way 
that excludes large-scale hydroelectric power stations, wh ich are regarded as a source of conventional energy. 
The list of NCRE includes solar, wind, bioenergy (bio mass and biogas), mini-hyd ro and geothermal energy. WT/TPR/S/315 • Chile 
 
- 121 - 
 
  4.110.  It is estimated that Chile has abundant potential wind, solar, biomass and tidal resources. 
Technological advances have been making NCRE generation increasingly competitive. Where wind energy is concerned, between 2012 and 2014 four new installations were built, including the El Arrayán wind farm, with the greatest generating capacity in the country. Generating capacity 
practically doubled, rising from 294.7 MW to 570 MW.
118 These figures are consistent with the 
Government's target of having 20% of th e country's power generation coming from 
non-conventional renewable energy sources (NCRE) by 2025. The total portfolio of NCRE projects 
(excluding hydroelectric energy) currently adds up  to about 17,000 MW and it is estimated that at 
the present pace generating capacity from these sources will be 8 GW by 2025.119 
4.111.  Law No. 20.698 of 14 October 2013, which amended the LGSE, stipulates that from 2025 
companies that sell power from systems with an in stalled capacity of more than 200 MW will have 
to prove that an amount of energy equivalent  t o  2 0 %  o f  t h e i r  s a l e s  i n  a n y  c a l e n d a r  y e a r  
has been injected into any of those systems by non-conventional renewable means of generation (see above).
120 
4.112.  The Chilean legislation offers tax incentives to companies that opt for NCRE. 
Law No. 20.365, published on 19 August 2009, established a tax benefit for construction companies that choose solar heating systems for providing hot water for sanitary use. Any 
company that invests in these systems for building housing will be able to deduct a credit 
equivalent to all or part of the value of the system installed plus the installation costs. This deduction is made from the mandatory provisional payments of income tax.
121 
4.113.  Through the Ministry of Agriculture's Fund for Agricultural Innovation (FIA), in 2014 
the Government launched a project of encouragem ent and support for the development of NCRE 
aimed at the agro-food and forestry sector, with a view to improving its competitiveness and productive and economic efficiency.
122 The mechanism offers co-financing for projects for investing 
in energy self-sufficiency technologies, on conditio n that they are based on NCRE and the energy is 
intended for improving production systems already in operation. The co-financing may vary between 20% and 65% of the total amount invested (depending on the beneficiary's annual sales 
volume), with an approximate and non-repayable maximum of US$200,000. 
4.4  Manufacturing 
4.114.  Between 2008 and 2014, the manufacturing sector 's share of GDP fell slightly from 11.2% 
t o  1 0 . 7 % .  T h i s  m a i n l y  r e f l e c t s  t h e  m o r e  r a p i d  g r o w t h  o f  o t h e r  s e c t o r s ,  s u c h  a s  m i n i n g  a n d  
services. Chile's manufacturing industry continues to be characterized by a strong link with the 
utilization of the country's natural resources, particularly with mining and the agricultural sector. This is reflected in the fact that the major manuf acturing activities include the food and beverages 
industry, the chemical industry, the beverages and tobacco industry, the cellulose, paper and 
printing industry, petroleum refining and the metal products industry (Table 4.9). During the review period, in terms of its contribution to GDP, the most dynamic industry was food, followed 
by metal products; all the other industries lost share of GDP. 
Table 4.9 Manufacturing sector GDP, 2008-2014 
(% of manufacturing GDP) 
Sector 2008  2009  2010  2011  2012 2013 2014a 
Manufacturing industry 11.2  11.3 10.8 11.0 10.5 10.5 10.7  
Food 2.4 2.8 2.6 2.6 2.3 2.6 3.1 
Beverages and tobacco 1.6  1.7 1.5 1.5 1.6 1.6 1.5  
Textiles, clothing and leather 0.4 0.3 0.3 0.3 0.3 0.3 0.2 
                                               
118 Document produced by the Ministry of  Energy's Renewable Energy Centre " Proyectos NCRE en 
operación ". Viewed at: http://cer.gob.cl/sobre-las-ernc/proyectos . 
119 Renewable Energy Centre of the Ministry of Energy (2013), Informe Anual 2013 . Viewed at: 
http://cer.gob.cl/sobre-las-ernc/proyectos . 
120 Article 150 bis of the General Law on Electrical Services (Decree with Force of Law No. 1 (1982) of 
the Ministry of Mining), as amended by Law No. 20.698 of 14 October 2013. 
121 Law No. 20.365, published on 19 August 2009. The benefit applies to housing with a value of up 
to 2,000 UF. 1 UF = US$41.78 as of 10 August 2014. 
122 FIA online information. Viewed at: 
http://www.fia.cl/ListadoNoticias/Noticias/tabid/139/ArticleID/725/Ministerio-de-Energ%C3 per centADa-y-FIA-
lanzan-convocatoria-para-proyectos-de-ERNC-e n-el-sector-agroalimen tario-y-forestal.aspx . WT/TPR/S/315 • Chile 
 
- 122 - 
 
  Sector 2008  2009  2010  2011  2012 2013 2014a 
Wood and furniture 0.6  0.5 0.5 0.5 0.5 0.5 0.6  
Cellulose, paper and printing 1.5 1.3 1.4 1.3 1.0 1.0 1.1 
Petroleum refining 0.6  0.7 0.7 0.7 0.7 0.8 0.8  
Chemicals, rubber  and plastics 1.7 1.6 1.5 1.5 1.6 1.5 1.4 
Non-metallic mineral products and basic metal 
industries 0.9 0.7 0.7 0.7 0.6 0.5 0.6  
Metal products, machinery and equipment, etc.  1.5 1.8 1.8 1.8 1.9 1.8 1.6 
a Preliminary figures. 
Source: Central Bank of Chile. Viewed at: http://si2.bcentral.cl /Basededatoseconomicos . 
4.115.  In 2013, exports of manufactured products (SITC classification) amounted to 
US$10,212 million, equivalent to 13.2% of Chilean merchandise exports. The principal manufacturing sector exports include chemical products, semi-manufactured wood, paperboard 
and paper products, and machinery and transport equipment. In the same year, imports of 
manufactured products amounted to US$55,633 million, i.e., 69.5% of total merchandise imports. The main categories of manufacturing imports included machinery, transport equipment and chemical products. 
4.116.  Chile does not use border measures to protect or promote its manufacturing sector. 
In 2014, the average of the MFN tariffs applied to manufactured products was 6%, since almost all imports of these products were subject to that rate. At the same time, since its last review, 
Chile has not applied any anti-dumping or countervailing duties to manufactured products, 
although it has initiated two investigations. 
4.117.  Chile does not apply any sectoral incentive policies targeted specifically at the 
manufacturing sector. However, the manufacturing sector can benefit from cross-sectoral policies 
that pursue objectives such as the promotion of investment, the development of SMEs, the encouragement of technological innovation and clusters. In this case the incentives consist mainly of tax concessions, financing for investment and technological development, support for 
business management and facilitation of access to credit (Section 3.4.2). The manufacturing sector 
can also take advantage of general export incentive programmes that consist essentially of administrative facilities for the payment and reimbursement of customs duties. 
4.5  Services 
4.5.1  Financial services 
4.5.1.1  General characteristics and regu latory and prudential aspects 
4.118.  Chile has a diversified financial sector with a high degree of financial intermediation and 
international integration. During the review period , Chile made a series of proposals to adapt its 
banking rules to the Basel III criteria, but the complete implementation of those criteria will also require amendments to the legislation. The Chilean financial sector operates within a supervisory 
and regulatory framework that has been deemed adequate by the international organizations and 
is in constant process of being reformed to improve the scope and effectiveness of the supervision.
123 The IMF considers that Chile has made considerable progress in strengthening its 
financial regulations, but that some important changes still need to be made.124 Noting the current 
soundness of Chile's financial indicators, the IMF draws attention to certain areas in which surveillance needs to be increased. One of these is the high level of exposure of the financial 
system to mortgage loans, which account for about one quarter of total lending. It also notes the 
increase in business loans, which account for half the loan portfolio, and the relatively high dependence on institutional deposits (more volatile than savings deposits) as a source of funding. 
                                               
123 IMF (2014),  2014 Article IV Consultation - Staff Report; Press Release; and Statement by the 
Executive Director for  Chile, IMF Country Report No. 14/218 , July 2014. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2014/cr14218.pdf ; and IMF (2014), Chilean Banks' Loan to Deposits 
Ratio. Prepared by Nicolás Arregui, in: Chile, Selected Issues . Prepared by Yi Wu (AFR), Elif Ture, 
Daniel Rodriguez-Delgado (both WHD), and Nicolás Arregui (MCM), July 2014. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2014/cr14219.pdf . 
124 IMF (2014),  2014 Article IV Consultation - Staff Report; Press Release; and Statement by the 
Executive Director for  Chile, IMF Country Report No. 14/218 , July 2014. WT/TPR/S/315 • Chile 
 
- 123 - 
 
  In general, the IMF considers that in Chile th e financial risks are limited, since the banks and 
insurance companies are adequately capitalized and profitable. 
4.119.  The Chilean financial sector is large, considering the size of the economy. The system is 
characterized by a high degree of integration with the local, regional and international economy 
and has a significant level of foreign participation, both in banking and in insurance and pension 
funds. The degree of financial intermediation is high and bank credit represented about 85.5% of GDP in 2014. The assets of the financial system ex ceed 200% of GDP; banking sector assets were 
approximately 123% of GDP at the end of 2014, while pension fund assets amounted to 60% of 
GDP and those of the insurance companies to 20%. 
4.120.  The financial services market consists of the banking sector, insurance, the securities 
market and the pension funds. Access to the market  is relatively free of restrictions, although 
some conditions or requirements are imposed in certain instances. For example, for reasons of 
national interest, approval is required for a person to acquire more than 10% of a bank's capital. Foreign banking and insurance enterprises must be set up as corporations or establish branches 
with separate capital to be able to provide services in Chile. Foreign insurance companies may also 
market international maritime transport, international commercial aviation and transit goods insurance directly, but only if they are established in countries with which Chile has an 
international treaty that allows such insurance to be effected. 
4.121.  Maximum interest rates (agreed maximum intere st rate) are imposed on bank loans, in 
both local and foreign currency.
125 The agreed maximum interest rate may not exceed by more 
than 50% the average interest paid by banks and finance companies established in Chile on 
transactions carried out in the country (current in terest) in effect at the time of the agreement, 
no matter whether the rate is fixed or variable. It is for the Banks and Financial Institutions Supervisory Authority (SBIF) to determine current interest rates, with distinctions made depending 
on whether the loans are in local or foreign currency and are indexed or not. The averages are 
established in relation to the transactions made during each calendar month and the resulting rates are published in the Official Journal and by the Supervisory Authority. According to the 
authorities, the imposition of maximum interest  rates is designed to prevent the banks from 
adopting dominant position practices, as a result of concentration. All financial institutions that offer consumer loans, including credit card companies, must respect these maximum rates. 
4.122.  Since 1997, Chile has applied Basel international capital adequacy rules and during the 
review period has examined the incorporation of rules based on Basel II/III, which will be adapted 
and implemented subject to amendment of the General Law on Banks. The Central Bank has 
completed the process of reviewing the banking sect or liquidity rules with a view to strengthening 
the framework and aligning more closely on the Basel III international liquidity rules, and the SBIF 
has posted them on its website for consultation with a view to implementation. 
4.123.  In 2014, financial services accounted for 5.1% of GDP in current pesos, as compared with 
the 5.2% recorded in 2008. Between 2008 and 2014, financial services grew at a real average 
annual rate of 7.0%. During the review period, Ch ile's trade in insurance services ran a deficit, 
amounting to US$697 million in 2013, as a result of imports costing US$1, 027 million and exports 
worth US$329 million. 
4.124.  In December 2014, the participants in the Chilean financial sector supervised by the SBIF 
included: (i) 24 banks, of which 20 were ba nks established in Chile, 19 privately owned 
and 1 State-owned, and 4 were branches of foreign banks. The SBIF also 
supervises 27 representative offices of foreign ba nks from 12 countries and 3 branches of Chilean 
banks abroad.
126 In addition, it oversees 7 savings and loan cooperatives; 3 credit card 
operators; 1 debit card operator; 7 financial consultancies; 21 banking support companies (2 of 
                                               
125 For example, in January 2014, the rate for non-inde xed loans in local currency for less than 90 days, 
less than or equal to the equivalent of 5,000 UF, was 31. 62%, while that for loans greater than the equivalent 
of 5,000 UF was 10.95%. For non-indexed loans in local currency for 90 days or more, the rates were 47.91%, 45.91%, 24.09%, 11.58%, 7.35%, 7.02% an d 6.9%, depending on the amount. The rate for loans expressed 
in foreign currency was 6.06% or 4,4%, de pending on the amount. SBIF. Viewed at: 
http://www.sbif.cl/sbifweb/servlet/InfoFinanciera?indice=4.2.1&FECHA=1/1/2014 . 
126 The branches of Chilean banks abroad are: BC I – Miami Branch; Banco del Estado de Chile – 
New York Branch; and Corpbanca - New York Branch. WT/TPR/S/315 • Chile 
 
- 124 - 
 
  them also credit card operators); 2 cooperative sector support companies; 2 property leasing 
companies; 4 recovery agencies; 3 factoring companies; 16 credit card issuers and operators; 7 non-banking credit card issuers and operators; 4 valuation companies; 16 mutual guarantee companies and FOGAPE (guarantee fund); 4 mutual guarantee institution valuation 
firms; 11 external auditors; 3 general bonded warehouses registered with the SBIF; and 2 general 
bonded warehouse valuation firms. 
4.125.  The Chilean financial sector is characterized by the strong presence of financial 
conglomerates. The authorities consider that the presence of de facto (unregulated) conglomerates 
could pose risks for the stability of the financial system, as it involves the existence of large-scale institutions and interconnections between the component vehicles, through transactions and investments between related parties. The authorities have been working on a bill 
that gives the various supervisory bodies the explicit power to request more information 
concerning conglomerates and have indicated that there are plans to introduce a law regulating financial conglomerates. 
4.126.  In accordance with Decree Law No. 3.475 of 1980, which contains the Law on Stamp Duty, 
lending operations are subject to that tax.  Law No. 20.130 of 2006 provided for a gradual 
reduction (from 1.6% to 1.2% of the principa l in 2009) and exempted rollover operations. 
As a means of dealing with the effects of the global financial crisis, Law No. 20.326 
of 20 January 2009 stipulated that the tax in question would not apply to lending operations during 2009, would be applied at a rate of 0.6% in the first half of 2010 and would return to 1.2% in the second half of 2010. 
4.127.  The regulation of the Chilean financial sector is the responsibility of the Central Bank of 
Chile. Chile employs an institutional or compartmental model of supervision, in which the legal status of the institutions supervised defines the supervisory functions and objectives of the sector's 
three existing Supervisory Authorities: the Banks and Financial Institutions Supervisory Authority 
(SBIF), the Securities and Insurance Supervisor y Authority (SVS) and the Pensions Supervisory 
Authority. Up until 2011, there was no coordination  between these agencies with regard to their 
respective supervisory tasks, since, although th ere were bilateral or multilateral coordinating 
bodies, such as the Committee of Directors of Financial Sector Supervisory Authorities, in operation since 2001, they did not have a well-ordered and comprehensive legal framework. Moreover, they had different objectives with respect to systemic risk management and financial 
crisis situations. This changed with the establishment of the Financial Stability Council (CEF), 
created by Supreme Decree of the Ministry of Fi nance No. 953 of 4 October 2011, which has been 
operational since the same month. The CEF aims to facilitate technical coordination and 
information exchange so as to prevent situations that could introduce a risk of crisis into the 
financial sector and constitutes the first collective body established in Chile to identify threats to financial stability and make it possible to implement integrated supervision. The CEF is composed 
of the Minister of Finance (who acts as its chai rman), the Director of Securities and Insurance, 
the Director of Banks and Financial Institutions, and the Director of Pensions. 
4.128.  The CEF was originally established through administrative channels, but on 
6 November 2014 Law No. 20.789 of 29 October 2014, the Law establishing the Financial Stability 
Council, entered into force. The law maintains the consultative nature of the body, thus preserving 
the legal autonomy of the participating technical institutions. At the same time, it expands the opportunities for sharing information within the CEF and allows the directors to access more 
information concerning financial conglomerates. In addition, it lays down solvency requirements 
for the controlling shareholders of banks and insu rance companies, so as to avoid risks to their 
solvency and hence to the stability of the financial system. The Law reinforces the institutional 
framework of the CEF as a coordinating body for the analysis and exchange of information, 
thereby making it possible to take a comprehensive view and arrive at a common diagnosis of the sources of risk and facilitate the resolution of cr itical situations that involve the exercise of the 
functions and powers of the competent bodies. The CEF is regularly advised by the Central Bank of 
Chile on all matters relating to its functions. 
4.129.  Since it was established, the CEF has met monthly, with the permanent support of 
a Technical Secretariat, provided by the Minist ry of Finance. The topics addressed by the CEF 
include risk analysis, aspects of regulation and legislation, financial conglomerates, derivatives, WT/TPR/S/315 • Chile 
 
- 125 - 
 
  and aspects of the property sector.127 As regards risk analysis, the CEF has been monitoring the 
trends in portfolio flows, which in Chile's case have continued to be positive, and borrowing costs, as well as, on the local level, the recently observed massive transfers between pension funds, while keeping a constant watch on conditions in the money market. The CEF also monitors the 
movements of interest rates. Where regulation and legislation are concerned, the CEF is informed 
of the main legislative and regulatory initiatives being undertaken by each of the participating institutions, so that its members can get an overall picture of the regulatory changes in progress. 
In 2014, it examined some of them in particular, such as the new regulations on non-bank credit 
cards, the new rules on bank liquidity and the draft law on the Securities and Insurance Commission, etc. 
4.130.  The Central Bank of Chile (BCCh), under its Constitutional Organic Law, has to regulate the 
relationship between the borrowing and lending operations of the banks. On the basis of this legal 
mandate, it regulates the banks' liquidity management as set out in Chapter III.B.2 of its Compendium of Financial Regulations. This regulatory process is implemented and supervised by 
the Banks and Financial Institutions Supervisory Authority (SBIF), under Chapter 12-9 of its 
Compendium of Regulations. Since 1997, the prin ciples of the Basel Agreement relating to the 
supervision of banking institutions have been applied. With respect to liquidity standards, the 
Chilean regulatory framework currently establishes maximum mismatch periods of 30 and 90 days 
for operations in local and foreign currency and places limits on these 30 and 90 day mismatches equivalent to a maximum of one and two times the bank's core capital, respectively. These regulations have been in force since April 1999. The authorities consider that, generally 
speaking, these regulations have achieved the obje ctives pursued, enabling them to obtain access 
to information about liquidity margins and concentrations of maturities and thereby facilitating the taking of decisions on safeguard measures, where necessary. Nevertheless, the regulations in 
force subscribe only partially to the Basel principles for the management of liquidity risk and the 
authorities consider that there is room for strengthening bank liquidity risk management policies and the risk management processes used in formulating them. 
4.131.  In this connection, since 2013, the BCCh, jointly with the SBIF, has been revising its bank 
liquidity regulations to incorporate the latest guidelines from the Basel Committee on Banking Supervision (BCBS), particularly in relation to the Basel III agreements. As a result of this process draft regulations were drawn up and published and remained open for public consultation until 
6 September 2014. According to the authorities, the actual implementation of the Basel II and 
Basel III principles from the standpoint of capita l adequacy will require the amendment of the 
General Law on Banks. 
4.132.  The introduction of new bank liquidity regulations is intended to achieve the following 
objectives: (i) to strengthen bank liquidity risk management policies, in line with international best practice, by establishing clear guidelines for liquidity risk management and minimum criteria for 
the development of stress testing exercises and contingency plans in each institution; 
(ii) to incorporate the quantitative measures of Basel III, that is, the Liquidity Coverage Ratio  
(LCR) and the Net Stable Funding Ratio  (NSFR), per currency and on an individual and 
consolidated basis
128; (iii) to increase the quantity and quality of the information available to the 
supervisor and the market, by adding, as well as the Basel III liquidity indicators, monitoring 
variables for the assets and main sources of financing, to improve the prudential and financial stability analysis being developed by the BCCh
129; and (iv) to improve the current regulatory 
requirements, by introducing limits on a consolid ated basis to supplement the individual limits, 
so as to take into consideration the liquidity management in all the branches of the banks established in Chile while making it clear that bank branches abroad must be managed completely 
independently of the parent company. 
                                               
127 Ministry of Finance. Viewed at: http://www.hacienda.cl/sala-de-prensa/noticias/historico/evaluacion-
del-trabajo-del-consejo-de.html . 
128 For further information see: Bank of International Settleme nts (2010), Basel III Committee on 
Banking Supervision, International framework for liquidity risk  measurement, standards and monitoring , 
December 2010. Viewed at: http://www.bis.org/publ/bcbs188_es.pdf . 
129 Basel III also proposes additional indicators which can be used as supplementary monitoring tools by 
the supervisor and the market. These include maturities mismatches; the concentration of sources of financing 
by counterparty, instrument and currency; the value of uncommitted available collat eral; the LCR by currency, 
taking hedging in foreign currency into consid eration; and trends in market variables. WT/TPR/S/315 • Chile 
 
- 126 - 
 
  4.133.  The authorities have pointed out that, once the regulations enter into force, studies will be 
carried out to incorporate new statutory limits and advance the process of improving the current limits. In particular, establishing a limit for the LCR, with a suitable period for its progressive introduction, will be assessed and the current maturity mismatches will be revised to make them 
properly reflect the liquidity management normally practised by the banks.
130 The assessment 
made during this period of the existing gaps be tween the supply of high-quality liquid assets and 
the demand will make it possible to adapt the criteria used for constructing high-quality liquid 
assets to the local situation.131 
4.134.  Law No. 20.720 of 9 January 2014 replaced the regime for liquidating financial sector 
companies in force up to that point with a law on reorganization and liquidation for companies and individuals. The new law replaces the reference to the bankruptcy (" quiebra ") of a company by 
liquidation (" liquidación") . It also stipulates that, once the liquidation resolution has been adopted, 
the provisional receiver will continue the debtor's economic activities until the creditor committee appoints another administrator and for not more than one year from the date of the liquidation 
resolution. The economic activities may be en ded before the year has passed only with the 
authorization of the court hearing the liquidation proceedings. Once the period of one year from the adoption of the liquidation resolution has ex pired, the debtor's economic activities may be 
continued in the cases and in accordance with the rules laid down in the Law on the Reorganization 
and Liquidation of the Assets of Companies and In dividuals. Claims arising after the end of the 
first year of continuation of the economic acti vities will benefit from preferential payment. 
Moreover, during the first year following the da te of the liquidation resolution, the company's 
assets may only be transferred as an economic unit to another company in the same line of 
business, unless the judge hearing the liquidation proceedings authorizes otherwise. 
4.135.  Some of the RTAs signed by Chile incorporate financial services chapters, such as 
those with Japan; Australia; European Union; United States; Canada; Hong Kong, China; 
the Pacific Alliance; and Thailand. In other cases, financial services have not been included (for example, the agreement with Central America). 
4.5.1.2  Banking sector 
4.5.1.2.1  General characteristics 
4.136.  In December 2014, the assets of the Chilean banking system were valued at 
Ch$180.9 billion (US$288,000 million), equivalent to 122.9% of GDP, while total deposits 
amounted to Ch$105.4 billion (US$165,000 million), that is, 71.7% of GDP. On the same date, 
the Chilean banking system comprised 11 domest ic private banks, 12 foreign private banks 
(subsidiaries and branches), and one State-owne d bank (BancoEstado). The banks and branches 
under foreign ownership or control held about 34% of total assets (41% in 2008), while the 
domestic private banks held 50% and the State-owned bank 16%.
132 At the end of 2014, there 
were 27 representative offices of foreign banks operating in Chile. 
4.137.  The number of banking institutions remained stable during the period 2008-2014. At the 
end of 2013, the five largest banks accounted for 72% of total assets.133 The solvency and 
profitability indicators for the Chilean banking system are sound: on 31 October 2014, the system 
had a capital adequacy ratio of 13.38%; after inco rporation of the estimated capital requirements 
needed to cope with market risk the ratio amounted to 12.26%.134 On 31 December 2014 the 
                                               
130 At present, in Chile there is no differentiation between different types of high-quality liquid assets, 
which are taken to mean any asset that can be sold in less than 30 days. The new regulations proposed differentiate between Level 1 and Level 2 liquid assets, according to the risk, and limit Level 2 (riskier) assets to 40% of the total stock. See: Banco Central de Chile (2014) , Antecedentes de la nueva regulación sobre 
gestión de liquidez bancaria  (open for public consultation until 6 September 2014). Viewed at: 
http://static.pulso.cl/20140509/1939859.pdf . 
131 Banco Central de Chile (2014) , Antecedentes de la nueva regulación sobre gestión de liquidez 
bancaria  (open for public consultation until 6 September 2014). Viewed at: 
http://static.pulso.cl/20140509/1939859.pdf . 
132 Information provided by the Chilean authorities. 
133 These are: Banco Santander-Chile (17%), Banco de  Chile (16.3%), BancoEstado (16.1%), Banco de 
Crédito e Inversiones (12.8% ), and Corpbanca (11%). 
134 SBIF (2014), Panorama de la Industria Bancaria al primer trimestre del año 2014 . Viewed at: 
http://www.sbif.cl/sbifweb3/internet/archivos/Info_Fin_602_13871.pdf . WT/TPR/S/315 • Chile 
 
- 127 - 
 
  return on average equity (ROAE) was 19.28%. At the same time, the return on average assets 
(ROAA) before tax amounted to 1.54%. The loan provisions index was 2.42% in November 2014, while the non-performing (90 days or more past due) loan index amounted to 2.04%. The operating costs to operating income efficiency indicator was 49.33%, while the operating costs 
to assets ratio was 2.17%. At the end of 2014, the loan provisions index stood at 2.42%, while the 
non-performing loan index was 2.10% (Table 4.10). 
Table 4.10 Main banking system indicators, 2009-2014 
Indicator 2009 2010  2011  2012  2013 2014  
Total financial assets 
(banking sector) MM$ 101,907,507 108,233,852  126,295,010  140,525,867  158,746,428 180,881,039  
As % of GDP (at current prices)  105.3 97.5 104.1  109 115.9 122.9  
Banking  system deposits MM$  58,564,118 64,966,889  76,544,265  86,737,994  97,151,654 105,447,653  
Deposits as % of GDP 60.7 58.5 63.1 67.2 70.9 71.7 
Loan portfolio        
Commercial loans MM$ 42,689,644 45,629,265  54,465,770  62,747,676  70,770,871 76,527,116  
Consumer loans 8,700,975 9,738,588  11,487,586  13,479,715  15,833,583 17,182,298  
Mortgage loans  17,547,698 19,586,130  21,993,143  24,535,794  27,592,200 32,158,817  
Loan portfolio as % of GDP 71.48 67.53  72.49  78.09  83.34 85.52  
Bank lending rate        
Commercial loans 3.06 4.60  7.44 6.23 5.93 5.34  
Consumer loans 15.88 16.89  17.79  19.02  17.71 15.95  
Mortgage loans  4.55 4.41  4.31 4.41 4.40 3.96  
Activity variation 12 months        
Loans 1.23 6.36  12.94  11.55  11.02 4.81  
Credit and accounts receivable  -0.13 6.03 13.11  11.91  10.91 4.29 
Commercial (businesses) -3.45 4.33  14.88  12.45  10.52 2.35  
Persons 7.73 9.05 9.88 10.83  11.93 7.54 
Consumption 3.77 9.25  13.52  14.53  15.10 2.71  
Housing 9.80 8.95 8.07 8.89 10.20 10.31  
Profitability       
Return on equity before tax 18.59 21.82  20.81  17.29  18.35 19.28  
Return on equity after tax 15.24 18.62  17.50  14.65  14.84 17.21  
Return on total assets before 
tax 1.47 1.72 1.62 1.38 1.49 1.54 
Return on total assets after tax  1.20 1.47  1.36 1.17 1.21 1.40  
Operating efficiency       
Operating costs to operating 
income 46.80 47.51  49.70  50.62  49.63 49.33  
Operating costs to total assets  2.36 2.46 2.33 2.31 2.26 2.34 
Support costs to gross 
operating margin 44.58 45.93  47.63  48.07  46.63 46.28  
Support costs to total assets 2.26 2.31 2.20 2.18 2.15 2.17 
Credit risk by provisions       
Loans 2.39 2.49 2.33 2.27 2.39 2.42 
Credit and accounts receivable  2.43 2.52  2.36 2.29 2.42 2.45  
Commercial (businesses) 2.17 2.34 2.14 2.00 2.20 2.36 
Persons 2.78 2.81  2.71 2.77 2.78 2.59  
Consumption 6.27 6.34 6.08 6.36 6.31 6.11 
Housing 1.06 1.05  0.94 0.79 0.75 0.70  
Non-performing loan 
portfolio (90 days or more)       
Loans 3.41 3.03  2.59 2.20 2.13 2.10  
Credit and accounts receivable  3.48 3.07 2.62 2.22 2.15 2.12 
Commercial (businesses) 2.00 1.90  1.66 1.51 1.68 1.72  
Persons 5.84 4.86 4.13 3.35 2.90 2.74 
Consumption 2.79 2.21  2.39 2.40 2.11 2.10  
Housing 7.36 6.17 5.04 3.86 3.31 3.05 
Impaired portfolio       
Loans 8.90 8.38 5.93 5.15 5.10 5.20 
Credit and accounts receivable  9.10 8.49  6.01 5.21 5.16 5.28  
Commercial (businesses) 8.33 8.05 4.63 3.86 4.11 4.39 
Persons 10.34 9.18  8.27 7.45 6.87 6.65  
Consumption 11.38 9.51 8.17 7.89 7.24 7.29 
Housing 9.83 9.01  8.32 7.20 6.65 6.30  
Source: Banks and Financial Institutions Supervisory Authority (Chile). WT/TPR/S/315 • Chile 
 
- 128 - 
 
  4.5.1.2.2  Legal and institutional framework 
4.138.  The main bodies responsible for regulating the banking system are the Banks and 
Financial lnstitutions Supervisory Authority (SBIF), an autonomous institution linked to the Ministry of Finance, and the Central Bank of Chil e. The SBIF is charged with supervising the banks 
and other financial institutions.
135 The Central Bank establishes the reserve requirement for banks 
and the collateral and guarantee levels for foreign exchange transactions. 
4.139.  Since the last review, some changes have been made to the General Law on Banks (LGB) 
(Decree with Force of Law No. 3 of the Ministry of Finance of 1997), such as those contained 
in Law No. 20.789 of 6 November 2014. 
4.140.  Under the LGB, banks must be established as corporations or agencies of foreign 
corporations in the case of branches. For a bank to establish itself in Chile, the authorization of the 
SBIF is required. To be able to obtain a banking licence it is necessary to provide the SBIF with 
a prospectus, a business plan for the first three years and a guarantee of 10% of the capital of the proposed company. Under the legislation, an essential requirement for the approval of a licence 
application is the verification of the solvency and integrity of the founding shareholders. To meet 
the solvency requirement, the founding shareholders of a bank must have consolidated net worth equivalent to the proposed investment, that is, a minimum of 800,000 UF, approximately 
US$33 million. At the time when a bank is granted its charter or a branch of a foreign bank is 
authorized to operate, 50% of the minimum capi tal must have been paid up, there being no 
time-limit for paying up the balance. Until the bank has achieved the minimum capital of 800,000 UF, it must maintain an effective equity of not less than 12% of its risk-weighted assets, a 
proportion that is reduced to 10% when it ha s an effective equity of 600,000 UF. To meet the 
integrity requirement, the founding shareholders, in  addition to their business experience, must be 
a b l e  t o  s h o w  t h a t  t h e y  h a v e  n o t  e n g a g e d  i n  a n y  s e r i o u s  o r  r e p e a t e d  f r a u d u l e n t  o r  n e g l i g e n t  
behaviour that might jeopardize the stability of the institution it is proposed to establish or the 
security of its depositors. The SBIF verifies compliance with the above-mentioned criteria by 
examining the applications it receives on a case by case basis, while, in addition, the Central Bank 
may rule on the effects that the authorization of new banks might have on the stability of the 
financial system. 
4.141.  The Chilean legislation does not place any limits  on the number of shares that an individual 
investor may own in a particular bank or on the number of banking system entities that an 
investor may control. However, for a person to acquire, directly or through third parties, 
more than 10% of a bank's capital the prior authorization of the SBIF is required.
136 In this case, 
the acquisition is subject to the same conditions as is the establishment of a new banking entity 
where integrity and solvency requirements are concerned. 
4.142.  The SBIF must issue a provisional banking licence authorization within a period 
of 180 days. If the application is rejected, the rejection must be notified in writing and based on 
a reasoned decision that the shareholders do not meet the requirements laid down. Failure of the 
SBIF to take a decision within the statutory time-limit will be interpreted as tacit approval and the licence will be deemed to have been granted. The authorities have pointed out that in recent years applications to found a bank have been processed within the statutory time-limits. If the 
application is approved, before authorization is granted, a check is made to determine whether the 
new banking institution is ready to commence activities. In particular, it is determined whether it has the human and technological resources and the procedures and controls to begin functioning. 
Once this has been verified, the SBIF can proceed to grant the authorization to operate. 
Title XV of the General Law on Banks makes reference to measures for regularizing the situation of the banks and their compulsory liquidation. 
4.143.  The legislation allows Chilean nationals and residents of Chile to make deposits in and 
obtain loans from banks located abroad. However, the cross-border supply of banking services is not permitted. 
4.144.  Foreign banks may establish themselves in Chile by opening a subsidiary (set up as 
a Chilean corporation), by holding shares in an existing Chilean bank, or by setting up a branch 
                                               
135 The SBIF's statutes can be found in Title I of the General Law on Banks. 
136 Article 36 of the LGB. WT/TPR/S/315 • Chile 
 
- 129 - 
 
  with separate capital. The law requires that sthe capital and reserves that foreign banks allocate to 
their branches be actually brought into Chile and converted into the national currency. Branches of 
foreign banks are subject to the same rules and requirements as domestic banks and may engage in the same activities, including tapping funds in the local market. In operations between a branch 
and its parent company abroad, the two are deemed to be independent entities. There are no 
restrictions with respect to the number of branches of foreign banks that can operate in the country. The LGB provides that for a foreign bank to obtain approval to open a branch in Chile or 
invest in a Chilean bank, its operations must be adequately supervised in its home country so as to 
permit the assessment of the associated risks an d it must have the prior authorization of the 
competent regulatory body in that country. 
4.145.  Foreign banks may also maintain a representative office in Chile, subject to the approval of 
the Director of Banks. Representative offices may not engage in banking activities in Chile, 
but they may advertise the products or loan services of their parent company. 
4.146.  The formation of financial conglomerates is permitted de facto, although there are as yet 
no regulations in this respect. Any bank established in Chile, whether Chilean or foreign-owned, 
may set up and hold shares in companies that provide banking support services, as well as in subsidiaries that offer various financial services.
137 However, banks are legally prohibited from 
participating in conglomerates which include activities other than the financial services identified 
by the Law. More specifically, banks may not ho ld shares in insurance companies, industrial 
enterprises, commercial enterprises or public ut ility enterprises, among others. The LGB allows 
Chilean banks to carry on activities abroad, provided that they comply with minimum requirements 
of capital adequacy and the country in which they operate provides for adequate supervision.138 
4.147.  Sight deposits are fully guaranteed by the Central Bank of Chile and can be encashed in 
the event of a banking entity being wound up (Article 132 of the LGB). Term deposits, 
including savings accounts, are covered by the State guarantee up to a maximum of 108 UF 
(approximately US$4,400). The LGB provides for the following payments on national or foreign-currency deposits in a bank or savings and loan cooperative subject to the SBIF's 
supervision: (i) 90% of the total, with a ma ximum payable of 108 UF, throughout the banking 
system for each calendar year, on the term depo sits of natural persons, and (ii) 100% of the 
amount on current account and sight deposits. 
4.148.  In its Schedule of Specific Commitments included in the Fifth Protocol annexed to the 
GATS, Chile does not impose any market access or national treatment limitations as regards 
commercial presence for providing banking services and auxiliary services.
139 
4.5.1.3  Insurance 
4.5.1.3.1  General characteristics 
4.149.  The Chilean insurance market performed strongly during the review period, in terms of 
both the number of companies involved and the amount of assets and premiums. The growth of 
the sector continued to be closely linked with th e development of the pension funds, which by law 
must purchase life and incapacity insurance for their members. During the review period, a number of prudential regulatory changes were also made with a view to strengthening supervision. 
4.150.  At the end of 2013, there was a total of 61 insurance companies, as compared with 55 
in 2009, of which 29 were in general insurance and 32 in life insurance.
140 The latter are those that 
have a greater share of the market, with about 67% of total premiums in 2013. In both groups, 
foreign-owned companies hold a substantial stake: around 63% in the general insurance market 
and 47% in the case of the companies offering life insurance. In 2013, the insurance market was 
also composed of 135 reinsurance companies (all foreign), 56 reinsurance brokers, 225 adjusters, 
                                               
137 The services identified by the LGB include: mutu al fund, investment fund or foreign capital fund 
management, over-the-counter securities agents, financ ial advisory services, loan recovery and advisory 
services relating to the pe nsions system, stock exchange brokers, insurance brokers, securities custody, 
factoring, leasing operations , and asset securitization. 
138 Article 76 of the LGB. 
139 WTO documents GATS/SC/18 of 15 April 1994 and GATS/SC/18/Suppl.3 of 26 February 1998. 
140 SVS. Viewed at: http://www.svs.cl/portal/estadisticas/606/w3-propertyname-623.html . WT/TPR/S/315 • Chile 
 
- 130 - 
 
  2,363 insurance brokers, and 491 insurance advisers ( asesores previsionales ).141 In general, the 
life insurance companies form part of financial conglomerates. 
4.151.  Despite the global financial crisis, the assets of the insurance companies increased during 
the review period: in 2013 they amounted to US$49,494 million (as compared with 
US$35,973 million in 2009) and accounted for 18.9% of GDP. The net worth of the insurance 
companies rose from US$4,794 million in  2009 to US$6,177 million in 2013.142 In 2013, 
the Chilean-owned companies held 33.6% of th e net worth while the foreign companies held 
66.4% of the capital, prominent among them being those with capital coming from the 
United States (20.9%); Spain (13.9%); France (13.6%); the United Kingdom (12.6%); Switzerland (3.8%); and Germany (1.6%). The life insurance companies owned approximately 
90% of the assets in 2013. Also in 2013, insurance premiums accounted for 4.2% of GDP and life 
insurance premiums for 2.8%, while general insurance premiums amounted to 1.4%.
143 At the end 
of 2013, some 37.3% of premiums were collecte d by Chilean-owned companies and the remaining 
62.7% by foreign-owned ones, notably those with capital from the United States (20.3%); 
the United Kingdom (14.9%); Spain (14.5% ); France (6.5%); Switzerland (4.4%); 
and Germany (2.5%). The five largest insurance companies accounted for 50% of premiums in the life insurance market and 55% of those in the general insurance market. 
4.152.  The Chilean insurance sector is fairly well developed, with a relatively high insurance 
density (US$671 in December 2013). Chile has the following statutory insurance requirements: (i) to obtain any bank loan it is necessary to take out an insurance policy; (ii) to obtain a mortgage loan it is necessary to take out in advance insurance policies against fire, earthquake and flooding; 
and (iii) pension funds are required to take out life insurance policies to cover the risk of their 
members' dying or becoming disabled.
144 
4.5.1.3.2  Legal and institutional framework 
4.153.  The Securities and Insurance Supervisory Authority (SVS), an autonomous institution 
linked with the Ministry of Finance, is respon sible for supervising the activities and entities 
involved in the Chilean securities and insuranc e market. The SVS also regulates the activities 
related to the sector. The Insurance Law (Decree with Force of Law No. 251 of 1931 and its 
amendments) constitutes the basic legislat ive framework for the insurance industry. 
The Commercial Code (rules governing insurance contracts), Decree Law No. 1.092 of 1975 on mutual insurance societies and Law No. 18.490 of 1986 on compulsory personal accident insurance 
(SOAP) also apply. During the review period, important changes were incorporated in the 
legislative and regulatory framework, such as those introduced by Law No. 20.552 of 17 December 2011, which modernized the financial system and promoted competition, and by 
Law No. 20.667 of 4 April 2013, which governs insurance contracts. The second of these laws 
amended certain aspects of the Commercial Code, while the first introduced legislation on insurance associated with mortgage loans and relaxed the limits on the freedom of insurance 
companies to invest in certain assets. 
4.154.  To start up an insurance company in Chile or engage in any insurance or reinsurance 
activity it is necessary to obtain the approval of the SVS. Insurance companies may be established as corporations set up in Chile for that sole purpose, in accordance with the Insurance Law, or as 
branches of foreign insurance companies with separate capital, in accordance with the 
amendments to the Insurance Law introduced by Law No. 20.190 of 5 June 2007. 
4.155.  Insurance companies must be established either as life insurance companies or as general 
insurance companies. Life insurance companies may not offer general insurance and vice versa. 
Moreover, insurance companies may only reinsure risks of the same group as that in which they are authorized to operate. Credit risks must be insured with a general insurance company whose 
sole purpose is to cover that type of risk. Despit e having to be established as separate entities, 
a life insurance company and a general insurance company may belong to the same group 
                                               
141 SVS. Viewed at: http://www.svs.cl/portal/estadisticas/606/w3-propertyname-623.html . 
142 SVS. Viewed at: http://www.svs.cl/portal/estadisticas/606/w3-propertyname-623.html . 
143 Information provided by the Chilean authorities. 
144 IMF (2014),  2014 Article IV Consultation - Staff Report; Press Release; and Statement by the 
Executive Director for  Chile, IMF Country Report No. 14/218 , July 2014. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2014/cr14218.pdf . WT/TPR/S/315 • Chile 
 
- 131 - 
 
  (through a holding) and in this case may have the same management. The time-limits for 
obtaining a reply to an establishment application vary according to the type of insurance company it is wished to establish. The limit for general insurance companies is 60 days, after which the applicant may request a ruling from the SVS, which then has 5 days in which to decide. Under the 
Insurance Law, if there is no reply, the ap plication is deemed to have been rejected. 
However, under the Law on Transparency of 2009, the SVS is under an obligation to reply and to explain the reasons for rejection. Where life insu rance is concerned, the SVS has 90 days within 
which to process an application; in this case, if the SVS fails to notify its decision, the licence is 
deemed to have been granted. The minimum capital requirement for establishing an insurance company is 90,000 UF (US$4 million), while in the case of a reinsurance company at least 120,000 UF (US$5.3 million) is required. 
4.156.  Under the Insurance Law, insurance may be taken out abroad, except for compulsory 
insurance (SOAP) and insurance relating to the pension and social welfare systems, which must be taken out in Chile. 
4.157.  Chile adheres to the principle of insuring risk s in the country in which they arise and not 
abroad. Thus, foreign insurers may not offer or ta ke out insurance in Chile, directly or through 
intermediaries, and nor may Chilean companies offer insurance contracts abroad. Exceptions to 
this rule, considering that in these cases the risk does not arise entirely within the country, 
are international maritime transport insurance, international commercial aviation insurance and insurance for goods in transit, which may be provided by foreign insurance companies established in a country with which Chile has an international treaty that permits such insurance to be 
effected. This is the case with the treaties concluded with the United States, the European Union, 
Japan and Australia. 
4.158.  Foreign insurers may operate in Chile by establishing a corporation or a branch with 
separate capital, subject to SVS approval. Foreign insurance companies may also maintain 
a representative office in Chile. The branches of foreign companies have the same rights and 
obligations as domestic insurance companies and their activities are not restricted to any area of 
insurance in particular. There are no restrictions on the number of branches that foreign insurance 
companies may establish in Chile. 
4.159.  Where reinsurance is concerned, foreign entities may carry out operations without 
the need to establish themselves in Chile, provid ed that they have an international risk rating 
of at least BBB, appoint a representative in Chile and are enrolled in the SVS's register 
of foreign reinsurers. 
4.160.  Amounts insured, premiums and claims must be expressed in UF, unless the contracts are 
in foreign currency. Premiums may be set freely; there are no limits or guide parameters. 
Likewise, intermediation commissions are agreed  freely between the insurer and the insurance 
broker. The Insurance Law establishes solvency marg ins that must be maintained by each type of 
insurance company. The main purpose of the solvency margin is to ensure that the company has 
the resources available to cover exceptional movements due to changes in risks. The solvency margin for general insurance companies corresponds to the greater of the result of calculating the 
solvency margin in terms of premiums and the re sult of calculating it on the basis of claims. 
The solvency margin for life insurance companies corresponds to the sum of the amounts that 
result from calculating the margin for accident, health and additional non-life insurance by applying the rules laid down for general insurance, the margin for life insurance that does not 
generate mathematical reserves, calculated on the basis of the ratio of self-preservation to total 
capital, and the company's total indebtedness margin calculated in accordance with certain parameters. There are also limits on investment per instrument. Moreover, the law authorizes 
insurance companies to invest in instruments and assets abroad up to a maximum of 20% of their 
technical reserves and risk capital. 
4.161.  To operate as a broker it is necessary to be registered with the SVS and to obtain 
a licence. Natural persons must be either Chilean or foreigners established in Chile, while legal 
persons must have been legally incorporated in Chile for the purpose. However, Law No. 20.190 
allows international maritime and air transport insurance and insurance for goods in international transit to be intermediated in Chile by natural or legal persons established in a country with which WT/TPR/S/315 • Chile 
 
- 132 - 
 
  Chile has an international treaty that permits such insurance to be effected from that country.145 
Foreign reinsurance brokers are subject to the same requirements with respect to registration and the issuance of insurance policies as domestic brokers and must be legal persons established in their country of origin, with the capacity to in termediate risks transferred from abroad and pay 
claims in convertible currency. 
4.162.  At the end of 2014, Chile was in the process of introducing a system of supervision based 
on risks, including changes in the solvency requ irements. A draft Law on Risk-Based Supervision 
for the Insurance Industry was approved in the Chamber of Deputies in October 2012 and at the 
end of 2014 was being examined in the Senate. The dr aft law is intended to deal with some of the 
shortcomings identified in the current Chilean legislation, for example, the fact that risk is not taken into account at the time of requiring minimum capital, which is the same for all companies 
under the current legislation. In this respect, the draft strengthens the supervisory process by 
making distinctions between companies according to their level of risk and their risk management and corporate governance practices.
146 It is expected that the implementation of the draft law will 
lead to changes in insurance company capital requirements, investment regulations and corporate 
governance. The supervisory system proposed  employs a method of assessment based on 
two pillars of corporate financial soundness. Firstly, the level of compliance with new minimum 
solvency rules incorporating the notion of a risk-based capital requirement is assessed. 
Secondly, the SVS will assign a rating to each co mpany based on an assessment of its exposure to 
risk, its risk management practices and the quality of its corporate governance and on a qualitative assessment of its capitalization. 
4.163.  The authorities have also identified a num ber of areas in which they are working 
to confront known risks, such as the effect of increased life expectancy and the mismatch between 
assets and liabilities (the former have an average life of 9 years, whereas that of the latter 
is 11 years). 
4.164.  Chile's commitments under the GATS do not reflect some of the changes to the legislation 
made in recent years. For example, with regard to market access it is stipulated that insurance 
services may only be provided by companies incorporated in Chile that offer life or general 
insurance, although the establishment of  branches has been permitted since 2007.
147 Chile has not 
submitted a revised financial services offer to the WTO. 
4.165.  Some of the RTAs signed by Chile include provisions on insurance in the respective 
financial services chapters; other agreements envisage future negotiations with a view to their 
inclusion. The SVS signed a memorandum of understanding with the International Association of Insurance Supervisors (IAIS) in 2012 and another with Peru's Banking, Insurance and 
Private Pension Fund Managers Supervisory Authority in 2013. 
4.5.1.4  Pension funds 
4.5.1.4.1  General characteristics 
4.166.  Chile's pension system is one of the three ma in pillars of the Chilean financial system; 
it is the second most important sub-sector (after banking) in terms of assets and contribution to GDP. It is a compulsory individual capital account  system designed to receive the social welfare 
savings of the affiliated workers, who must each month pay 10% of their wages into a personal 
account with the Pension Fund Management Company (AFP) of their choice. At the end of 
September 2014, there were 9,716,665 people affili ated to the Individual Capital Account Pension 
System.
148 This is equivalent to about 55% of the population (17.8 million).149 Out of the total 
                                               
145 Article 58 bis of Decree with Force of Law No. 251. 
146 IMF (2014),  2014 Article IV Consultation - Staff Report; Press Release; and Statement by the 
Executive Director for  Chile, IMF Country Report No. 14/218 , July 2014. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2014/cr14218.pdf . 
147 WTO document GATS/SC/18/Suppl.3 of 26 February 1998. 
148 Pensions Supervisory Authority. Viewed at: 
http://www.spensiones.cl/safpstats/stats/.sc.php?_cid=3 . 
149 Estimated population of Chile in 2014. National Statistical Office. Viewed at: 
http://www.ine.cl/canales/chile_estadistico/familias/demograficas_vitales.php . WT/TPR/S/315 • Chile 
 
- 133 - 
 
  number of contributors, 97.4% are dependent workers. In September 2014, the average 
contribution density, over the previous 12 months, was 52%. 
4.167.  The Pension Fund Management Companies (AFPs), private institutions responsible for 
managing individual accounts through five pension funds, are the largest institutional investor in 
the Chilean financial market. The total value of the assets of the AFPs amounted to 
US$168,696 million on 30 September 2014 (68.4% of GDP).150 On 30 September 2014, 
there were six AFPs operating. In four of the AFPs, some of the principal shareholders are 
controlled by foreign entities. 
4.5.1.4.2  Legal and institutional framework 
4.168.  The legal framework of the pension funds su b-sector is based on Decree Law No. 3.500 
of 1980, which created the individual capital a ccount system managed by the AFPs, and on its 
regulations,  Decree No. 57 of 20 July 1990. Decree Law No. 3.500 has been amended by several 
laws over the course of the years. These include Law No. 20.255, published on 17 March 2008, which introduced social welfare reform and extended the scope of the system by making it 
compulsory for the self-employed as well; increased the investment options and changed the 
maximum limits; established a public tender mechanism for allocating new compulsory accounts; and sought to expand social protection by means of a solidarity pillar. More recently, 
Law No. 20.366 of 22 July 2009 advanced the process of transition of the system of solidarity 
pensions established in Law No. 20.255, while Law No. 20.459 of 31 August 2010 introduced rules for facilitating access to basic solidarity pensions for disability and old age. 
4.169.  The Pensions Supervisory Authority (SP) is the regulatory body that represents the State 
within the Chilean pensions system. The SP is an autonomous entity linked with the Government 
through the Ministry of Labour and Social Welfar e via the Undersecretariat of Social Welfare. 
The SP is responsible for authorizing the es tablishment of AFPs, overseeing the legal, 
administrative and financial aspects of their operation, and regulating their activities. The SP was 
created by Law No. 20.255 of 2008 as the legal successor to the Pension Funds Management Companies Supervisory Authority established under  Decree Law No. 3.500 of 1980. The task of the 
SP is to supervise and monitor the Solidarity Pensions System administered by the Social Welfare 
Institute (IPS), the AFPs and the Unempl oyment Funds Management Company (AFC), 
which collects contributions, invests the resources and pays unemployment benefits. 
4.170.  There are no restrictions on the participation of foreign investment in the equity of an AFP. 
Any Chilean or foreign person, natural or legal, may be a shareholder in an AFP, which must be 
established as a sole-purpose corporation, subject to the approval of the SP. The minimum capital requirement for establishing an AFP is 5,000 UF (US$203,137) and the requirement increases with 
the number of people affiliated, up to 20,000 UF when there are more than 10,000.
151 
The AFP may charge commissions, which they may set freely and which must be uniform for all those affiliated to the same AFP. 
4.171.  The SP applies a risk-based supervision (RBS) model, consisting of structured processes 
for identifying, monitoring, controlling and mitigating the most critical risks confronting the entities supervised, by evaluating the management of the pr ocesses involved. This approach is intended to 
provide a comprehensive and preventive supervisory mechanism. It is comprehensive since it 
involves a review of all the risks associated with each activity. Risk-based supervision is applied to 
the AFPs, to the AFC and to the IPS, with appr opriate adjustments according to the complexity, 
nature and scale of the operations of each of the entities concerned.
152 
4.172.  The resources of the Pension Funds may only be invested in the securities expressly 
established by law and the level of risk varies according to the Fund. Thus, since August 2002, the compulsory savings of the pension funds have  been managed under a multiple fund scheme. 
At present, five types of Funds (A, B, C, D and E) are being managed, the distinguishing factor 
being the level of risk to which they are exposed, defined as the proportion invested in 
                                               
150 Superintendencia de Pensiones (2014) Ficha Estadística Previsional N° 24-Noviembre 2014 . Viewed 
at: http://www.spensiones.cl/portal/informes/581/articles-10645_recurso_1.pdf . 
151 On 31 August 2014, 1 UF was approximately equal to US$41. 
152 SP. Viewed at: 
http://www.spensiones.cl/portal/institucional/578/w3-propertyvalue-6085.html . WT/TPR/S/315 • Chile 
 
- 134 - 
 
  variable-yield securities.153 The main purpose of creating a multiple fund or multi-fund scheme 
within the Social Welfare System is to increase the expected value of the pensions that the participants in the scheme will obtain. The authorit ies consider that the opportunity to invest in 
a portfolio of financial assets whose level of risk is linked with the investment horizon of the 
participant makes it possible to improve the expected value of the pension.
154 
4.173.  Chile has not made any specific commitments with regard to pension funds under 
the GATS. 
4.5.2  Telecommunications 
4.174.  In Chile, the telecommunications sector is entirely privately operated. The Chilean 
legislation envisages sector-specific nationality requirements, applicable to the holders of concessions for the provision of public telecommunications services and intermediate services, 
in addition to the radio frequency spectrum. The general rule continues to be free pricing 
(Article 29 of the General Law on Telecommuni cations). In exceptional cases, such as 
interconnection between public services concession holders and intermediate services concession 
holders, the tariffs are regulated by law.
155 There have been some changes in the legislation since 
the last review, especially with regard to the provision of a telecommunications service in the event of a natural disaster. Number portability has been incorporated as a consumer right and has 
been implemented across the board for both mobile and fixed telephones. In the first half of 2014 
the concept of national long distance telephony was abandoned. At the end of 2014, the Government was working together with Argentina to eliminate the billing of international "roaming" charges between the two countries.
156 S i m i l a r  e f f o r t s  h a v e  a l s o  b e e n  m a d e  i n  o t h e r  
bodies at international level. Thus, the Telecommunications Chapter of the Pacific Alliance, 
in which, in addition to Chile, Peru, Colombia and Mexico also participate, stipulates, in Article 14.20, that the Parties shall cooperate in promoting transparent and reasonable tariffs 
for mobile international "roaming" services. This will be achieved by means of the measures 
concerning transparency and facilitation in the use of alternative technologies for which the same article provides. 
4.5.2.1  General characteristics of the sector 
4.175.  Chile's communications sector accounted for 1.8% of GDP in 2014; in the same year, 
telecommunications accounted for 3.3% of foreign investment.
157 After declining between 
2009 and 2011, foreign investment in telecommuni cations rebounded in the following years. 
4.176.  The telecommunications industry is continuing to experience significant expansion, which is 
particularly apparent in the mobile telephony and Internet access services segments. In 2014, 
mobile telephony had more than 23 million users (16.5 million in 2009) (Table 4.11). Thus, 
by June 2014 the penetration index had risen to 132.1 per 100 inhabitants.158 Meanwhile, 
by the same date fixed Internet connections had reached about 10 million. Of the Internet 
connections 96% were dedicated access connections, mainly by cable modem and ADSL.159 
Table 4.11 Telecommunications indicators, 2009-2014 (1st half) 
 2009 2010 2011 2012 2013 1st half 
2014 
Communications share of GDP 
(at current prices, reference 2008) (%) 2.05 1.98 1.96 2.04 2.00 1.92  
Investment (US$ million) 194.5  123.0  94.1 255.9 248.7 28.6 
                                               
153 On 30 September 2014, the distribution of asse ts among the funds was: A: 16.3%; B: 16.5%; 
C: 37.3%; D: 16.0%; and E: 13.9%. Superintendencia de Pensiones (2014) Ficha Estadística Previsional N° 
24-Noviembre 2014 . Viewed at: http://www.spensiones.cl/portal/informes/581/articles-10645_recurso_1.pdf . 
154 Superintendencia de Pensiones, El Sistema Chileno de Pensiones , Seventh Edition, 2010. Viewed at: 
http://www.spensiones.cl/portal/informes/581/articles-7206_libroVIIedicion.pdf . 
155 Article 25, Law No. 18.168 (General Law on Telecommunications) of 1982. 
156 Undersecretariat of Teleco mmunications (SUBTEL) online  information. Viewed at: 
http://www.subtel.gob.cl/noticias/140-servicios-tele comunicaciones/5349-chile-y-argentinan-avanzan-por-
una-politica-conjunta-sobre-roaming . 
157 Central Bank of Chile statistics. Viewed at: http://www.bcentral.cl . 
158 Undersecretariat of Te lecommunications (SUBTEL) statistics. Viewed at: http://www.subtel.cl . 
159 Undersecretariat of Te lecommunications (SUBTEL) statistics . Viewed at: http://www.subtel.cl . WT/TPR/S/315 • Chile 
 
- 135 - 
 
   2009 2010 2011 2012 2013 1st half 
2014 
% total FDI 3.62  4.12 2.20 2.35 3.37 1.35  
Telecommunications services  
Total number of lines  20.00  23.30  25.67  27.22 26.86 26.56  
Number of fixed lines 3.55 3.45 3.36 3.28 3.20 3.17 
Number of mobile lines 16.45  19.85  22.31  23.94 23.66 23.39  
Number of Internet accounts 5.38 7.07 9.98 11.15 12.08 12.31  
Broadband, fixed (%) 31.05  25.48  20.14  19.03 16.75 18.17  
Broadband, mobile (%)  11.13  20.40  55.11  63.40 61.88 62.93  
Other (%) 57.81  53.87  24.63  17.56 21.35 18.89  
Number of Internet users, mobile and 
fixed (millions)  2.3 3.2 5.2 7.2 8.7 9.9 
Teledensity  
Total lines 
Fixed lines 20.9  20.1 19.4 18.7 18.1 18.2  
Mobile lines 96.7 115.6  128.8  136.9 134.1 132.1  
Internet broadband mobile 0.638  1.445  3.154  4.983 6.346 6.818  
Source: SUBTEL, ITU. 
4.177.  Chile has a growing number of Internet users. With respect to the International 
Telecommunication Union (ITU) indicator "percentage of individuals using the Internet" 
Chile scores 61.4%.160 To further promote penetration the Government is in the second stage of 
implementation of a free public Internet wirele ss connection system which will benefit 6 of the 
country's 15 regions, mainly places remote from the large urban centres. The project aims to 
reduce the "digital gap" and democratize Internet access for areas with low connectivity.161 
In accordance with the general trend at international level, fixed telephone lines are continuing to lose ground and between 2009 an d 2014 the number of subscribers fell by some 
300,000 to 3,170,000 lines.
162 
4.178.  At the end of 2014, the fixed telephony market  had 17 service providers, but at the same 
time there was a considerable degree of concentr ation. Two companies shared 73.27% of the total 
market and the other 15 the rest.163 In mobile telephony, 11 players were sharing the market, a 
big difference from the three that made up the in dustry in 2010, although in actual fact those 
three companies together were still accounting for almost all the mobile market, with 97.75% of the total in 2013.
164 At less than one US dollar, number portability between cellular telephone 
companies is one of the cheapest on the continen t. At present, the three dominant companies are 
not charging the end user for this service.165 With regard to Internet access services, 
97% of the market is served by five main players.  Out of this market share, 71.6% is in the hands 
of just two of these five companies.166 The State is not involved in the provision of 
telecommunications services. 
4.5.2.2  Legal and institutional framework 
4.179.  The State authority responsible for the telecommunications industry is the 
Ministry of Telecommunications and Transport (MTT) acting through the Undersecretariat 
                                               
160 Indicator from the International Telecommunication Union (ITU) statistical database: Percentage of 
individuals using Internet . Viewed at: http://www.itu.int/net4/itu-d/icteye . 
161 SUBTEL. Viewed at: http://www.subtel.gob.cl/noticias/5356-ministerio-de-transportes-y-
telecomunicaciones-inaugura-programa-de-wifi-gra tuito-que-beneficiara-a-153-localidades-del-pais . 
162 Undersecretariat of Telecommunications statistical data. Viewed at: 
http://www.subtel.gob.cl/informacion-estadistica-a ctualizada-e-historica4/informacion-estadistica4 . 
163 Undersecretariat of Telecommunications statistical data. Viewed at: 
http://www.subtel.gob.cl/informacion-estadistica-a ctualizada-e-historica4/informacion-estadistica4 . 
164 Undersecretariat of Telecommunications statistical data. Viewed at: 
http://www.subtel.gob.cl/informacion-estadistica-a ctualizada-e-historica4/informacion-estadistica4 . 
165 In Chile, in August 2014, number portability had a fixed cost of Ch$337, approximately US$0.60. 
SUBTEL online information. Viewed at: http://www.subtel.gob.cl/noticias/141-portabilidad-numerica-fija-
movil/2441-balance-primer-dia-de-la-portabilidad-entel-lidera-las-preferencias-de-cambio-le-sigue-claro-y-
movistar-es-la-que-pierde-mas-clientes1 . 
166 SUBTEL. Viewed at: http://www.subtel.gob.cl/attachments/article/5468/PPT Series Septiembre 2014 
041214 v1.pdf  and in the SUBTEL statistical series http://www.subtel.gob.cl/ informacion-estadistica-
actualizada-e-historica4/i nformacion-estadistica4 . WT/TPR/S/315 • Chile 
 
- 136 - 
 
  of Telecommunications (SUBTEL). The Undersecretariat oversees the telecommunications sector, 
implementing and enforcing the laws and technical regulations, as well as ruling on telecommunications and radio broadcasting conce ssions, processing licences and permits, and 
applying sanctions for non-compliance. 
4.180.  The General Law on Telecommunications (LGT, Law No. 18.168 enacted on 
15 September 1982) contains the industry's main re gulatory framework. It provides for free and 
equal access to the use of the radio freque ncy spectrum. Access is granted by the MTT, 
through SUBTEL, by means of concessions, pe rmits or licences, issued by supreme decree.
167 
Where telecommunications networks are concerned, equality of access finds expression in the LGT in the obligation upon the holders of public telecommunications services and intermediate connection services concessions to grant access to those who request it, while refraining from any 
discrimination with respect to the quality, extent, duration or price of the services provided.
168 
4.181.  Law No. 20.453, enacted on 18 August 2010, ensh rined the principle of neutrality within 
the telecommunications network in the Chilean legislation. This law introduced three new articles 
(24 H, 24 I and 24 J) into the LGT. These articles establish rights for Internet users and obligations 
for Internet service providers, in addition to empo wering SUBTEL to sanction infringements of their 
provisions. In short, the legislation lays down rules on non-discrimination to which Internet access 
providers must adhere in providing their serv ices and which prevent them from arbitrarily 
blocking, interfering with, discriminating against, obstructing or restricting the right of any Internet user to use, send, receive or offer any legal content, application or service through the Internet, as well as any other type of legal activity or  use effected through the network. The law is 
supplemented with regulations.
169 
4.182.  For a concession to provide public telecommunications services or intermediate services to 
be granted, the beneficiary must be an enterprise es tablished in Chile, irrespective of the origin of 
the capital. Concessions for public telecommunications services and intermediate services are 
granted for a period of 30 years. Law No. 19.733 stipulates that radio broadcasting concessions which benefit legal persons with more than 10% of foreign capital will be issued only if the 
legislation of the country of origin of that capital grants similar conditions on a basis of 
reciprocity.
170 Moreover, the chairmen, managers, administrators and legal representatives of 
free-to-air broadcasting concession-holders must be Chilean. In this case the concessions are granted for periods of 25 years. 
4.183.  Invitations to tender for free-to-air or broadcasting telecommunications services 
concessions are issued by the MTT by publishing them in the Official Journal on the first or 
fifteenth of each month, or the day immediately following if the former is not a working day. 
Where a concession is to be renewed, the incumbent concession-holder has the right 
of first refusal, provided he can equal the best  technical bid made by the other bidders. The MTT 
must publish a technically reasoned decision in those cases in which it declares that a particular 
frequency is not available. 
4.184.  Where the regulatory regime is concerned, the LGT establishes free pricing as a general 
rule for the telecommunications sector. Exceptionally, the law provides for tariff setting in the case of interconnection services supplied by the holders of concessions for public international 
long-distance services in fixed telephony. The tariffs are determined by means of studies carried 
out by the concession-holders themselves (or co mmissioned by them) and based on technical and 
economic data supplied by SUBTEL and the Ministry of the Economy. On the basis of these studies, 
the authority makes a tariff proposal open to objections from the concession-holders who may 
request expert arbitration. The process results in the generation of a catalogue of maximum tariffs per service, which must be updated every five years.
171 Title 5 of the LGT establishes 
the procedure, the competent authorities and th e time-limits involved in the determination 
of the tariffs. 
                                               
167 From the Office of the President of the Republic, for business and matters within its competence that 
do not require legislative processing or approval. 
168 Article 24 bis of the General Law on Telecommunications of 1982. 
169 Viewed at: http://www.leychile.cl/Navegar?idNorma=1023845 . 
170 Law No. 19.733 on the Freedoms of Opinion and Information and the Practice of Journalism 
(also called the Press Law). 
171 SUBTEL. Viewed at: http://www.subtel.gob.cl/2013-09-09-13-13-51/2013-09-09-13-29-59/112-
estudios-y-proyectos/estudios-2005/569-procedimiento-de-fijacion-tarifaria . WT/TPR/S/315 • Chile 
 
- 137 - 
 
  4.185.  In addition, the LGT authorizes the Tribunal fo r the Defence of Free Competition (TDLC) to 
order tariff setting in eligible cases, under the procedure laid down in Decree Law No. 211.172 
In view of the particular circumstances of the sector, the TDLC may decide to set tariffs if a certain type of telecommunications service (relevant ma rket) is being supplied under insufficiently 
competitive conditions.
173 In these cases, the Ministry of the Economy, together with SUBTEL, 
sets the tariffs and drafts the tariff decrees. The institutions for the defence of free competition have been working on various fronts to improve the levels of competition in the 
telecommunications and fixed Internet connections market. Within this context, on 8 April 2014, 
the TDLC decided to exercise the powers conf erred on it by Article 18 No. 4 of Decree Law 
No. 211, by recommending that the Executive introduce or amend laws or regulations necessary to promote competition in the provision of telecommunications services in condominiums and in 
property developments that envisage placing telecommunications networks underground.
174 
4.5.3  Air transport 
4.186.  During the review period, Chile strengthened its open skies policy based on free market 
entry and free pricing. Chile has negotiated 56 bilateral air transport agreements with different 
degrees of openness; more than half of these ag reements grant fifth and sixth freedom rights and 
several also grant the seventh freedom. This partly reflects the importance of air transport for 
Chile, which has the largest airline in Latin America. There are no restrictions on private or foreign 
participation in Chilean airports or on the provision of airport services or of auxiliary air transport services. The 16 main airports are State-owned and of these 11 have been put out on concession 
to the private sector. 
4.5.3.1  General characteristics 
4.187.  During the period 2009-2013, international passenger traffic increased by 50%, to reach 
7 million passengers carried. There was also a rising trend in domestic traffic, which totalled 
9 million passengers in 2013. Between January and July 2014 there was a further increase of 2.8% 
in international passenger traffic, as compared with the same period in 2013. Given the distances involved, in Chile air transport is extremely important as a means of carrying passengers, but its 
importance is more limited where air cargo is concerned. Thus, according to information provided 
by the National Customs Service, in 2013 less than  1% of Chile's foreign trade, expressed in 
tonnes, was moved as air cargo. This despite the fact that international cargo traffic increased moderately (by around 15%) over the period 2009-2013, to reach 271,000 tonnes. 
Between January and July 2014, international carg o traffic fell by 0.6% as compared with the 
same period in 2013. 
4.188.  In 2013, the 1,475,106 tourists arriving in Chil e by air accounted for 41% of total inward 
tourism. According to data gathered by the National Tourism Service (SERNATUR), 
tourists entering by air generated 77% of the foreign exchange derived from inward tourism, 
totalling US$1,633 million. In 2013, airline companies incorporated in Chile carried 57% 
of international passenger traffic and held 57% of the international air cargo market. 
4.189.  The Chilean airport network comprises 350 airports and airfields. The Directorate-General 
of Civil Aeronautics (DGAC) manages 28 of them and performs supervisory and control functions in relation to the rest. The primary network is composed of 16 State-owned airports/airfields 
(7 airports and 9 airfields) located mainly in the regional capitals or in the neighbourhood of cities 
that are important in various ways, for example, economically, thus providing connectivity both national, in the case of the 16, and international, in the case of the 7 airports.
175 Of the 
16 airports/airfields of the primary network, 11 are managed by private concession-holders, 
domestic or foreign. On the other hand, the se condary network comprises 12 airfields spread all 
over the country, supplementing the primary ne twork and serving to improve connectivity, 
                                               
172 Currently integrated into Decree with Force of Law No. 1 of 2004 of the Ministry of the Economy. 
173 Article 29, Law No. 18.168 (General Law on Telecommunications) and Article 18 of Decree Law 
No. 211 of 1973 (Promotion and Defence of Free Competition). 
174 The TDLC decision is available online at: 
http://www.tdlc.cl/DocumentosMultiples/Proposicion_14_2014.pdf . 
175 The seven airports are: Chacalluta (Arica), Diego de Aracena (Iquique), Cerro  Moreno (Antofagasta), 
Mataveri (Isla de Pascua), Arturo Merino Benítez (Santiago, the country’s main airport), El Tepual (Puerto Montt), and Presidente Carlos  Ibáñez del Campo (Punta Arenas). WT/TPR/S/315 • Chile 
 
- 138 - 
 
  while forming a link with the network of small airfields.176 Arturo Merino Benítez International 
Airport, which serves the metropolitan area of Santiago, handles more than 98% of international passengers and cargo. In 2013, this airport recorded 6,907,226 international passenger arrivals and departures (compared with 4.8 million in 2008). 
4.190.  Altogether, 11 concessions have been granted to private companies for airport 
construction, maintenance and management. Concessions are granted through competitive bidding for a fixed term. The State does not participate in the supply of air transport services, except 
insofar as it controls air traffic and collects fees for air traffic control and use of the airports. 
4.191.  The domestic air transport market continues to be highly concentrated with one dominant 
player (the LAN Group), a second player (SKY ) with a 23.6% share, and a few smaller ones 
(ONE SpA and Aerovías DAP). Competition in the international market is more intense; 
27 airline companies are currently providing international passenger and cargo transport services 
in Chile. However, during the review period, the le vel of competition declined, at least with respect 
to the Latin American market, with the merg er of LAN and the Brazilian company TAM. 
4.192.  The merger between LAN and the Brazilian TAM Ai rlines and the consequent creation of the 
consortium LATAM Airlines Group were announced on 13 August 2010. The merger was finalized in June 2012, following a decision by the Supreme Court (see below). The company that resulted 
from the merger, LATAM, became the largest airline in Latin America, in terms of both the size of 
its fleet and passenger numbers. To create the new conglomerate, shares were exchanged on the basis of 0.9 LAN shares to 1 share in TAM. 
4.193.  The merger between LAN and TAM was exam ined by the TDLC, following a request 
submitted by the Chilean National Corporation of Consumers and Users (CONADECUS) 
in January 2011, which resulted in the temporary suspension of the merger. The TDLC's investigation lasted eight months. In September 2011, the TDLC, in a divided decision, resolved to 
approve the merger operation that had been announced, subject to the mitigating conditions set 
out in Box 4.1.
177 
                                               
176 Directorate-General of Civi l Aeronautics. Viewed at: http://www.mop.cl/dap . 
177 The full text of the resolution can be viewed online at: 
http://www.tdlc.cl/Portal.Base/Web/VerContenido.aspx?ID=2644 . WT/TPR/S/315 • Chile 
 
- 139 - 
 
  Box 4.1 Conditions imposed on the merger between LAN and TAM by the TDLC 
in September 2011 
The TDLC has approved the merger between LAN and TA M subject to the following mitigating conditions: 
(i) exchange of four pairs of daily slots at Guarulhos airport in São Paulo, owned by LAN or TAM, with those 
airlines interested in commencing or expanding schedu led air transport services on the Santiago-São Paulo 
route; 
(ii) extension of the benefits of LATAM's Frequent Flye r Programme to passengers of an interested airline, 
for a period of five years and on the terms to be specified by the TDLC; 
(iii) signing of inter-line agreements on the Sant iago–São Paulo, Santiago–Río de Janeiro and/or 
Santiago-Asunción routes with interested airlines  which operate those rout es and which so request; 
(iv) commitment not to increase the monthly supply of available seats on flights on the Santiago-São Paulo 
route, in the period between 15 minu tes before and 15 minutes after the f light itinerary corresponding to the 
slots exchanged; 
(v) obligation upon LAN to amend its Self-Reg ulation Plan as indicated in the Resolution; 
(vi) relinquishment of participation in  at least one of the two global alliances in which at that time LAN and TAM 
were participating; 
(vii) elimination and review of the code-share agreements  with airlines not belonging to the same alliance as 
that to which LATAM belongs, on the routes and intermediate legs indicated; 
(viii) relinquishment on the part of LAN of four fift h-freedom scheduled flights at  Lima, to be awarded to 
another Chilean airline, and restriction on its participation in new flight tender proceedings; 
(ix) commitment to express a favourable opinion on the unilateral opening of skies for cabotage in Chile for 
airline companies of other States, without reciprocity requirements; 
(x) commitment to promote the growth and norm al operation of the airports of Guarulhos 
(São Paulo) and Arturo Merino Benítez (Santiago), to facilitate access for other airlines; 
(xi) establishment of non-exclusive marketing conditions  with travel agencies and distributors, without the 
possibility of offering incentives or commissions in relation to targets expressed as a percentage of total sales 
or other equivalent measures. 
The TDLC stipulated that until there was full compliance with condition (i) there could be no increase in the 
price of air tickets for passenger transport or in cargo tariffs on the Santiago–São Paulo and Santiago–Río de 
Janeiro routes, and that it would be obligatory to main tain: (a) at least 12 weekly round-trip flights without 
stopovers, operated directly by LATA M, on the routes between Chile and the United States; and (b) at least 
seven weekly round-trip flights without stopovers, operat ed directly by LATAM, on  the routes between Chile 
and Europe. 
Finally, the TDLC also stipulated that an independent th ird party be retained to advise the National Economic 
Prosecutor's Office for the purpose of effectively monitoring compliance with the mitigating measures and 
conditions. 
Source: TDLC. 
4.194.  The conditions imposed on the merger by the TDLC are largely based on the facts of the 
case provided by the National Economic Prosecutor's Office.178 LAN and TAM submitted a complaint 
against the TDLC's decision to the Supreme Co urt, in which they mainly questioned the 
clauses relating to allia nces and the relinquishment of certain routes at Lima. In April 2012, 
the Supreme Court issued a ruling rejecting the objections raised by LAN and TAM.179 
4.5.3.2  Legal and institutional framework 
4.195.  Chile's air transport legislation comprises: the Charter of the Civil Aeronautics Board 
(Decree with Force of Law No. 241 of 1960); the Law on Commercial Aviation 
(Decree Law No. 2.564 of 1979) establishing the basis of Chilean commercial aviation policy; 
Law No. 18.916 of 1990 approving the Aeronauti cs Code (last amended in December 2010, 
by virtue of Article 8 of Law No. 20.477); the Law on the Organization of the Directorate-General 
of Civil Aeronautics (Law No. 16.752 of 1968); an d Supreme Decree No. 102 of the Ministry of 
Telecommunications and Transport of 1981 establishing the public tender procedures for the 
allocation of international frequencies to domestic airline companies. International air transport is governed by 56 bilateral agreements and 3 mu ltilateral agreements negotiated by Chile 
(see below). 
4.196.  Chilean commercial aviation policy is set out in Decree Law No. 2.564 of 1979, 
which establishes the principles of free market entry, free pricing and minimum official 
intervention, and is designed to create the optimum conditions of competition among all the 
                                               
178 Viewed at: http://www.tdlc.cl/DocumentosMultiples/Aporta Antecedentes FNE - NC 388-11.pdf . 
179 The Supreme Court's decision can be viewed online at: 
http://www.tdlc.cl/DocumentosMultiples/Resolucion_37_Corte_Suprema.pdf . WT/TPR/S/315 • Chile 
 
- 140 - 
 
  companies with an interest in Chile's air transport system, with the aim of providing high-quality, 
efficient and low-cost services. The public institutions that regulate the commercial air transport sector are the Directorate-General of Civil Aeronautics (DGAC) of the Ministry of National Defence, the Civil Aeronautics Board (JAC) and the National  Directorate of Airports (DAP). The DGAC is 
responsible for regulating, certifying and supervisin g aviation activities in Chilean airspace and the 
activities of domestic users abroad. The DGAC is also responsible for granting air navigation, airport and meteorological services.
180 The Civil Aeronautics Board (JAC), assigned to the Ministry 
of Telecommunications and Transport, is responsible for commercial aviation policy and for 
negotiating reciprocity in international agreements. The JAC consists of a Council, the decision-making body, of interministerial composition, and a General Secretariat.
181 
The National Directorate of Airports (DAP) of the Ministry of Public Works is responsible for the 
airport infrastructure and for planning its development.182 
4.197.  Foreign companies have open access to the Chilean air transport market. Both Chilean and 
foreign companies may furnish air transport services in the country, provided that they comply 
with the technical requirements and hold the co mpulsory insurance. During the review period, 
provisions were introduced to strengthen cabota ge policy. Exempt Resolution No. 63 of the JAC, 
of 18 January 2012, reaffirmed commercial aviation policy with respect to cabotage, which allows 
a foreign company free access without reciprocity. Resolution No. 63 also granted all facilities to 
foreign airline companies requesting to engage in cabotage in Chile, on equal terms with domestic companies, and stipulated that reciprocity would not be considered in determining the possible termination, suspension or limitation of cabotage services provided by foreign companies.
183 
Following a request for a legal ruling submitted by two domestic airline companies to the Office of 
the Comptroller-General of the Republic, the latter ruled on the legality of Resolution No. 63, in November 2013, without finding any legal defect.
184 
4.198.  The principle of reciprocity applies to the entry of foreign companies into the international 
air transport market. Under Decree Law No. 2.564 of 1979, the JAC may restrict the access of foreign companies to the market if their country of origin applies restrictions on Chilean 
companies, or if the foreign company operates a route that is restricted by a third country for 
Chilean companies and this restriction is deemed to have a significant impact on the Chilean airlines. The Chilean legislation regards any airline company incorporated and domiciled in Chile as a domestic airline company, irrespective of whether or not the shareholders, board members 
and/or executives are Chilean and whether or not they  reside in Chile. Although for an aircraft to 
be registered in Chile a majority of the capital must belong to Chilean natural or legal persons, the law permits the registration of aircraft belonging to foreigners who engage in some 
employment, profession or industry in Chile and allo ws the registration of foreign aircraft operated 
on any basis by Chilean air transport companies. A Chilean airline company can use both Chilean and foreign-registered aircraft to provide air transport services. 
4.199.  Airline companies can establish their tariffs freely, but must register them with the JAC. 
The JAC is only allowed to register the tariffs, lacking the authority to set or challenge them. Exceptionally, however, it may set tariffs on international routes where the authority of the other country involved does not accept free pricing, although this has never happened in practice. 
It should be noted that before approving the merger between LAN and LADECO in 1995, 
the Resolutive Commission (predecessor of the TD LC) required these companies to submit a plan 
for the self-regulation of tariffs that establishes ce rtain restrictions with respect to the tariffs that 
LAN Chile may charge in the domestic markets.
185 
                                               
180 DGAC. Viewed at: http://www.dgac.cl/portal . 
181 The Council is composed as follows: Minister of Telecommunications and Transport, who acts as 
chairman; Director-General of Civil Aeronautics; Undersec retary for Foreign Affairs; Undersecretary for Social 
Development; Director of Airports-MOP; and two repres entatives appointed by the President of the Republic. 
JAC online information. Viewed at: http://www.jac-chile.cl . 
182 DAP. Viewed at: http://www.mop.cl/dap . 
183 The text of Exempt Resolution No. 63 of the JAC can be viewed online at: http://www.jac-
chile.cl/wp-content/uploads/2014/10/Resolución-63-Cabotaje.pdf . 
184 Ruling of the Office of the Comptroller-General of the Republic on the legality of Exempt Resolution 
No. 63 of the Civil Aeronautics Board of 2012 concerning Air Cabotage of 13 November 2013. Viewed at: 
http://www.jac-chile.cl/wp-content/uploads/2014/ 10/Dictamen-Contraloría-Res-Exenta-63-del-2012.pdf . 
185 Resolution No. 496 of 1997 of the Resolutive Commission approved the plan proposed by LAN 
and Ladeco. WT/TPR/S/315 • Chile 
 
- 141 - 
 
  4.200.  There are no restrictions on the participation of foreign investors in airport concessions. 
The market for airport services and air transport au xiliary services is open to foreign companies. 
For example, there are no legal provisions requiring national aircraft to be repaired or maintained in Chile. If these services are provided in Chile, they may be supplied by either domestic or foreign 
companies. Similarly, there are no restrictions on the supply of ground handling services by either 
domestic or foreign companies. Providers of comp uter reservation services do not have to be 
established in Chile in order to offer their services, nor are there any restrictions on the number of 
providers of computer reservation systems that can operate in Chile. 
4.201.  By 2014, in conformity with its air transport liberalization policy, Chile had negotiated 
56 bilateral air transport agreements or conventions with varying degrees of openness (Table 4.12). The degrees of freedom accorded va ry with the agreement: in 49 cases third and 
fourth freedom rights are established without restrictions, while in 38 agreements fifth and 
sixth freedom rights are also accorded without restrictions, and in 25 agreements the seventh freedom is also granted with respect to passenger and/or cargo transport. In addition and 
without prejudice to the unilateral liberalization of cabotage which Chile has practised with respect 
to all countries, in 15 bilateral conventions the right of air cabotage is granted bilaterally. 
4.202.  In some of its RTAs Chile has included a chap ter on air transport (for example, those with 
Central America and Mexico), by incorporating previously concluded bilateral conventions within 
the framework of these agreements. Chile participat es in the Fortaleza Agreement on regional air 
transport services concluded with Argentina, the Plurinational State of Bolivia, Brazil, Paraguay, Peru and Uruguay. Chile also forms part of the Mu ltilateral Agreement on the Liberalization of Air 
Transportation (MALIAT) concluded between variou s members of APEC (Br unei Darussalam, Chile, 
New Zealand, Samoa, Singapore and United States). Moreover, in 2003, Chile, together with Brunei Darussalam, New Zealand and Singapore, si gned an optional protocol to the MALIAT 
agreement allowing national cabotage and the seventh freedom for passenger transport. 
Finally, Chile promoted a Multilateral Open Skie s Agreement for the member countries of the 
Latin American Civil Aviation Commissi on (CLAC), adopted in November 2010. 
4.203.   Under the GATS, where air transport is concerned, Chile made specific commitments on 
aircraft maintenance and auxiliary air transport services. It bound the commercial presence of foreign providers to offer aircraft maintenance serv ices, the opening of offices, the issue and sale 
of air transport fares and tickets, the ground  operation of support equipment and computer 
reservation systems; for the latter cross-border supply was also bound. 
Table 4.12 Rights for foreign airlines in Chile 
Country Year Between territories 
of the parties 
3rd and 4th freedoms Between counterparty 
territory and third 
countries 5th and 6th 
freedoms From counterparty 
territory to third countries 
7th freedom  
Former Yugoslav 
Republic of Macedonia 2013 Open skies Open skies  Open skies 
Macao, China 2013 Open skies Open skies  Open skies 
Qatar 2012  Open skies Open skies  Open skies 
Bahrain 2010 Open skies Open skies  Open skies 
Kuwait 2010  Open skies Open skies  Open skies 
United Kingdom 2008 Open skies Open skies  Open skies 
Cook Islands 2006  Open skies Open skies  Open skies 
United Arab Emirates  2005 Open skies Open skies  Open skies 
Paraguay 2005  Open skies Open skies  Open skies 
Uruguaya 2003 Open skies Open skies  Open skies 
New Zealand 2001  Open skies Open skies  Open skies 
Singapore 2001 Open skies Open skies  Open skies 
Brunei Darussalam 2001  Open skies Open skies  Open skies 
Finland 2005 Open skies Open skies  Open skies 
Honduras 2012  Open skies Open skies  Open skies 
El Salvado r 2012 Open skies Open skies  Open skies (cargo) 
Barbados 2010  Open skies Open skies  Open skies (cargo) 
Iceland 2010 Open skies Open skies  Open skies (cargo) 
Tonga 2004  Open skies Open skies  Open skies (cargo) 
United States 2002 Open skies Open skies  Open skies (cargo) 
Samoa 2002  Open skies Open skies  Open skies (cargo) 
Guatemala 1999 Open skies Open skies  Open skies (cargo) 
Panama 1997  Open skies Open skies  Open skies (cargo) WT/TPR/S/315 • Chile 
 
- 142 - 
 
  Country Year Between territories 
of the parties 
3rd and 4th freedoms Between counterparty 
territory and third 
countries 5th and 6th 
freedoms From counterparty 
territory to third countries 
7th freedom  
Dominican Republic 2006 Open skies Open skies  Open skies (cargo) 
Jamaica 2006  Open skies Open skies  Open skies (cargo) 
Brazil 2010 Open skies Open skies  Open skies (cargo) 
Ecuado r 2007  Open skies Open skiesa 21 flights/wee k 
Malaysia 2009 Open skies Open skies  Without rights 
Belgium 2001  Open skies Open skies  Without rights 
Korea, Republic of  2001 Open skies Open skies  Without rights 
Denmar k 2001  Open skies Open skies  Without rights 
Netherlands 2001 Open skies Open skies  Without rights 
Luxembourg 2001  Open skies Open skies  Without rights 
Norway 2001 Open skies Open skies  Without rights 
Sweden 2001  Open skies Open skies  Without rights 
Italy 1999 Open skies Open skies  Without rights 
Costa Rica 1999  Open skies Open skies  Without rights 
Colombia 1993 Open skies Open skiesb Without rights 
Israel 1982  Open skies Open skies   
China 2009 Open skies 28 flights/weekc Without rights 
Argentina 1996  Open skies Open skiesd Open skies (cargo) 
Spain 2008 Open skies 19 flights/wee k Without rights 
Canada 2001  Open skies 14 flights/wee k Without rights 
Switzerland 2001 Open skies 7 flights/wee k Without rights 
Mexico 2012  Open skies Without rightse Without rights 
Aruba 1999 Open skies 7 flights/wee k Without rights 
Bolivia, Plurinational 
State of 1998 Open skies Without rights  Without rights 
Russian Federation 1993 Open skies 7 points  Without rights 
Cuba 1995  Open skies 2 points  Without rights 
Israel 1982 Open skies To be determined  Without rights 
Peru 2007  28 flights/wee k 14 flights/wee k Open skies (cargo) 
India 2007 14 flights/wee k 14 flights/wee k Open skies (cargo) 
Germany 1998  9 flights/wee k 9 flights/wee k Without rights 
France (Paris) 1998 7 flights/wee k 7 flights/week plus 3  cargo 
flights Without rights 
France (Papeete) 1998  7 flights/wee k 7 flights/wee k Without rights 
Australia 1998 7 flights/wee k 7 flights/wee k Without rights 
Venezuela, Bolivarian 
Republic of 1992 2 flights/wee k 2 flights/wee k Without rights 
  Open skies with 
49 countries Open skies with 
38 countries Open skies with 
25 countries 
a Open skies within Latin America; up to 15 scheduled flights outside the region. 
b Open skies within Latin America; up to 3 scheduled flights outside the region. c With 5
th freedom: 14 scheduled passenger flights and 14 cargo flights. 
d Open skies for 6th freedom; without rights for 5th. 
e Open skies within Latin America for scheduled cargo flights. 
Note: Open skies means without limitation on the number of flights or operating points. Source: Chilean Civil Aeronautics Board (JAC). 
 
4.204.  In 2014, a new national airport facilitation programme was introduced. The general 
objective of the National Programme for the Facilitation of International Air Transport (PNFTA) is to 
implement in Chile the standards and recommendations of the Chicago Convention and its 
Annex 9, where applicable, with a view to expe diting the required procedures for aircraft, 
passengers and their baggage, crews, cargo, ma il and supplies in international transit, 
by promoting the effectiveness and efficiency of border controls. The Programme is advancing by 
systematizing various aspects of facilitation to be addressed by the competent bodies and 
establishing specific initiatives to be developed in the future. The Programme also defines the jurisdictions of the various bodies involved in the facilitation process, as well as the passenger and 
cargo entry and exit processes, in order to provide general information and serve as a means of 
coordinating the actions of those bodies within the context of their lawful powers. The new version of the National Programme for the Facilitation of International Air Transport was approved by 
decision of the National Facilitation Commission of 30 July 2014. Once the corresponding decision 
had been signed, the Secretary-General of the Ci vil Aeronautics Board issued Exempt Resolution 
No. 457 of 8 September 2014, which establishes the Programme. WT/TPR/S/315 • Chile 
 
- 143 - 
 
  4.5.4  Maritime transport and ports 
4.205.  In general, Chile's maritime transport policy is based on reciprocity. Although this is true, 
in principle, with respect to international maritime traffic cargoes, where in accordance with its legislation Chile may require reciprocity, in prac tice, Chile applies more flexible and pragmatic 
criteria in this respect.
186 Cabotage is reserved for vessels registered in Chile, although, 
in practice, in this case too exceptions are permitted. There are certain registration requirements. To register a merchant vessel in Chile a majority of the capital must be owned by Chilean natural 
or legal persons. There are no restrictions on foreign participation in Chilean ports. 
4.5.4.1  Maritime transport 
4.206.  Maritime transport is of vital importance for the Chilean economy. Largely due to the 
relative proximity of the production centres to the ports, more than 90% of Chile's foreign trade is 
carried by sea. The national merchant fleet consists of 220 vessels with a total transport capacity 
of 984,404 deadweight tonnes, 15% higher than the tonnage reported in the last trade policy review in 2009. 
4.207.  Maritime transport and port activities are governed mainly by the Shipping Law (Decree 
Law No. 2.222 published on 31 May 1978 and its am endments), the Law on the Development of 
the Merchant Marine (LFMM) contained in Decree Law No. 3.059 of 22 December 1979 and its 
regulations (Supreme Decree No. 237 of 25 July 2001), Book III on Shipping and Maritime Trade 
of the Commercial Code (Supreme Decree (J) No. 471 of 12 August 1997) and the Law on the 
Modernization of the State Port Sector (Law No. 19.542 of 19 December 1997). 
4.208.  The public institutions that regulate the maritime transport sector are: the Transport 
Undersecretariat of the Ministry of Telecommunica tions and Transport, which is responsible for the 
commercial aspects of international maritime transport and cabotage; the Directorate-General of the Maritime Territory and Merchant Marine (DIREC TEMAR) of the Ministry of National Defence, 
which is responsible for the technical aspects of the merchant marine and safety at sea; 
and the Merchant Marine Development Commission, which oversees the application of the principle 
of reciprocity where cargo preferences are concerned. 
4.209.  The Shipping Law classifies ships as merchant ships and special ships and, according to 
their capacity, as large and small. Merchant ship s are those used for transport, whether domestic 
or international. Special ships are those used for specific services, activities or purposes and having characteristics appropriate to their intended function, such as tug-boats, fishing-boats, 
dredgers, research ships, recreational craft, et c. The Law defines vessels of more than 50 gross 
register tons as large and those of 50 or fewer gross register tons as small. 
4.210.  For a vessel to fly the Chilean flag it must be enrolled in the appropriate ship register. 
There are five registers: the Large Vessel Regist er; the Small Vessel Register; the Register of 
Vessels under Construction; the Floating Struct ure Register; and the Register of Mortgages, 
Liens and Injunctions. For a merchant ship to be registered in Chile its owner must be a 
Chilean national. If the ship owner is a company, it must have its principal domicile and its actual 
and effective principal place of business in Chile, its chairman, manager and a majority of its directors must be Chilean, and a majority of the eq uity must be owned by Chilean natural or legal 
persons. Special ships, other than fishing vessels, belonging to foreign natural or legal persons 
domiciled in Chile may also be registered there,  provided that the persons concerned have their 
principal place of business in Chile or are permanen tly engaged in an industry or profession there. 
For reasons of national security, special restrictions may be imposed on their operations. The 
registration of fishing vessels is subject to the principle of reciprocity: fishing companies 
established in Chile with a majority of foreign capital may register their ships as special, if in the country of origin of that capital there are provisions for the development of fishing activities and 
the registration of foreign vessels from which Chilean natural or legal persons can benefit.
187 Once 
a vessel has been entered in the corresponding register, it is deemed to be Chilean and taken into 
                                               
186 Article 4 of the Law on the Development of the Merchant Marine, contained in Decree Law No. 3.059 
of 22 December 1979, of the Ministry of Telecommunica tions and Transport, establishes the principle of 
reciprocity for maritime cargo transport from or to Chile. 
187 For the purposes of determining reciprocity and eq uivalence, prior certification by the Ministry of 
Foreign Affairs is required. WT/TPR/S/315 • Chile 
 
- 144 - 
 
  home use for customs purposes and from that po int on may fly the Chilean flag. To keep the 
national flag flying, the captain of the vessel and its officers and crew must be Chilean. However, under the law, by reasoned decision, it is possible to authorize the temporary hiring, if indispensable, of foreign personnel, except fo r the captain, who must always be Chilean. 
4.211.  For towing or other manoeuvres in Chilean port s, only national flag tug-boats may be used. 
However, in qualifying cases the use of foreign flag tug-boats may be authorized. 
4.212.  In general, the international provisions relating to Chilean maritime transport are based on 
the principle of reciprocity. Under the LFMM, the percentage access to maritime cargoes, from or 
to the country, for foreign merchant vessels depends on the percentage access allowed, in the corresponding traffic, to Chilean vessels by the country in question. Thus, 50% of the cargoes from or to Chile are reserved for Chilean vessels only in bilateral traffic from or to another country 
involved in the exchange that reserves all or part of its cargo from or to Chile for its merchant 
marine. However, if a country imposes for its vessels cargo preferences above or below 50% of the cargo it originates, the cargo preference percentage that will be applied to Chilean vessels with 
respect to that country will be raised or reduced in the same proportion. For cargo preferences to 
operate the service requested must be provided by an appropriate vessel, within the time-limits requested, and the tariffs charged may not exceed the best offer received by the user. 
4.213.  In accordance with the LFMM, national maritime  cabotage is reserved for vessels registered 
in Chile. However, without prejudice to the above, foreign merchant vessels may participate in national cabotage if the volumes of cargo involved  exceed 900 tonnes, subject to a public tender 
procedure organized by the user. In this case, and solely for tender acceptance purposes, bids 
involving foreign vessels are increased by a percentage equivalent to the general customs tariff 
rate. If the cargo volume is equal to or less than 900 tonnes and no Chilean flag vessels are available, cabotage in foreign merchant ships may be allowed. Such authorization may also be 
given for the exclusive transport of passengers. Moreover, foreign vessels are also allowed to carry 
empty containers in cabotage traffic, subject to reciprocity. Without prejudice to the above, the 
maritime authority may exclude one or more foreig n merchant ships from cabotage traffic if it 
considers there is good reason to do so. 
4.214.  Chilean or foreign shipping companies (including lightering, wharfage and towing 
companies) that provide international freight and passenger transport services are deemed to be 
exporters for the purposes of Decree Law No. 825 of 1974 and its regulations and may recoup the 
VAT paid to purchase or import goods or use services, insofar as these operations are necessary 
for the development of their activities.
188 If the shipping companies are unable to make use of this 
benefit, the shipyard and dockyard companies will be exempt from VAT on the sale of goods and 
the provision of services to the said companies,  provided they are not engaging in cabotage. 
4.215.   Under the Chilean legislation, an additional 5% tax may be levied on the income received 
by persons not domiciled or resident in Chile by way of charges for carrying ocean freight to or 
from Chilean ports.189 On the basis of the principle of reciprocity, which applies to all the sector's 
activities, this tax is not levied if in the country in which the foreign vessels are registered there is no similar tax or Chilean shipping companies are granted exemptions, which is generally the case. This tax features in Chile's List of MFN Exemptions under the GATS. 
4.216.  Chile is a signatory to the United Nations Convention on the Law of the Sea, has been 
a member of the International Maritime Organi zation since 1972, and within that context has 
signed various international maritime transport agreements. Chile applies a Bilateral Agreement on 
Maritime Transport concluded with Brazil in 1974. Chile has not made any specific commitments 
on maritime transport under the GATS 
4.5.4.2  Ports 
4.217.  Chile has 52 ports, of which 10 are State-owned. Seven of the State-owned ports are 
operated by private companies under concessions. Of the 42 privately owned ports, 20 are exclusively for private use and 22 are free-access. As far as cargo handling is concerned, the most active ports are Quintero, San Antonio, Valparaiso, Huasco, Lirquén, San Vicente and Mejillones. 
                                               
188 Article 7 of the LFMM. 
189 Article 59, No. 4 of the Income Tax Law. WT/TPR/S/315 • Chile 
 
- 145 - 
 
  The volume of freight moved through Chilean ports (including transit but excluding cabotage) rose 
from 83.6 million tonnes in 2007 to 111.5 million tonnes in 2013, which amounts to an increase 
of 33% over the period. In 2013, the privately ow ned ports handled 66.8% of cargo (mainly bulk), 
while the rest was handled by the State port enterprises (including private concession-holders). 
The freight volume carried by cabotage rose from 12.3 million tonnes in 2007 
to 13.7 million tonnes in 2013. 
4.218.  Law No. 19.542 created ten State port enterprises to be the legal successors of the Port 
Enterprise of Chile and operate in the corresponding port: Arica, Iquique, Antofagasta, Coquimbo, 
Valparaiso, San Antonio, Talcahuano-San Vicente, Puerto Montt, Chacabuco, and Austral (Punta Arenas). The port enterprises are legal persons governed by public law, constitute a State-owned enterprise with its own as sets, of indefinite duration, and are linked with 
the Government through the Ministry of Telecommunications and Transport (MTT). The ports and 
terminals managed by these enterprises are for public use. The port enterprises are responsible for the management, operation, development and maintenance of the ports and terminals, as well as 
for all related activities. The Enterprise System (SEP) oversees the management of the 
State port enterprises. 
4.219.  The Law provides for port enterprises to be able to achieve their objectives either directly 
or through third parties. In this latter case, they do so by granting port concessions, concluding 
leasing agreements or by establishing corporations with Chilean or foreign natural or legal persons. The corporations may not have as their purpose the management or operation of wharves and are governed by the rules applicable to open joint-stock companies. To engage in port activities in 
a private port it is necessary to obtain a maritime concession granted directly by the Armed Forces 
Undersecretariat of the Ministry of National Defence; the port thus put out on concession may be for public or private use.
190 
4.220.  Ports are subject to regulation and supervis ion by other public agencies such as the 
Customs, the SAG, the Ministry of Health and DI RECTEMAR. The Law stipulates that the provision 
of loading, unloading, cargo transfer (from port to vessel and vice versa) and intra-port transport 
services, insofar as they form part of the purp ose for which the enterprises were established, 
must be carried out by duly qualified persons. Private companies may participate in the provision of these services through port concessions granted under a public tender procedure, in accordance with the Regulations established by Supreme Decr ee No. 104 (1998) of the MTT. Chilean or foreign 
natural or legal persons may participate in the bidding. 
                                               
190 Decree with Force of Law No. 340 of 1960. WT/TPR/S/315 • Chile 
 
- 146 - 
 
  5  APPENDIX TABLES 
Table A1. 1 Merchandise exports by product, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012 2013 2014  
 (US$ million) 
Total exports 55,459  71,106  81,438  77,965 76,684 76,639  
 (% of exports) 
Total primary products 85.7 86.6 85.2 84.5 85.2 85.2 
Agriculture 25.9  22.2 23.2 24.2 27.1 28.8  
Food 20.0 16.6 17.5 18.5 20.8 22.1 
0579 Fruit, fresh or dried, n.e.s. 2.2  2.1 2.1 2.3 2.5 3.0  
1121 Wine of fresh grapes (including fortified wine); 
grape must in fermentation or with fermentation 
arrested 2.5 2.2 2.1 2.3 2.6 2.4 
0342 Fish, frozen (excluding fillets and minced fish)  1.9 1.4 1.8 1.7 1.8 2.2  
0575 Grapes, fresh or dried 2.4 2.1 2.0 2.1 2.3 2.2 
0345 Fish fillets, fresh or chilled, etc. 1.1  0.6 0.8 1.1 1.4 1.7  
0344 Fish fillets, frozen 1.0 0.8 0.9 0.9 1.1 1.3 
0574 Apples, fresh 0.9  0.9 0.8 0.9 1.1 1.1  
0341 Fish, fresh (live or dead) or chilled (excluding 
fillets and minced fish) 0.4 0.4 0.4 0.4 0.6 0.7 
Agricultural raw materials 5.9  5.6 5.7 5.7 6.3 6.7  
2515 Chemical wood pulp, soda or sulphate, other 
than dissolving grades, semi-bleached or bleached 3.3 3.1 3.1 3.0 3.3 3.4 
2482 Wood of coniferous species, sawn or chipped 
lengthwise, etc. 0.8 0.8 0.8 0.9 1.1 1.3  
Mining 59.8 64.4 62.0 60.4 58.1 56.4 
Ores and other minerals 22.5  25.1 23.4 25.4 26.8 26.9  
2831 Copper ores and concentrates 17.8 19.3 17.8 20.5 22.0 21.9 
2878 Ores and concentrates of molybdenum, 
niobium, tantalum, titanium, vanadium and zirconium 2.1
 1.7 1.8 1.6 1.1 1.6  
2815 Iron ore and concentrates, not agglomerated  0.6 1.0 1.5 1.5 1.5 1.3 
2881 Ash and residues (other than from the 
manufacture of iron or steel) containing metals or 
metal compounds, n.e.s. 0.2 0.3 0.4 0.3 0.5 0.6  
2882 Other non-ferrous base metal waste and scrap, 
n.e.s. 0.8 1.4 0.7 0.3 0.5 0.5 
Non-ferrous metals 35.9  38.4 37.6 34.0 30.4 28.6  
6821 Copper, refined and unrefined; copper anodes  34.7 37.0 35.9 32.5 29.2 27.5 
6824 Copper wire 0.5  0.7 0.7 0.6 0.6 0.7  
Fuels 1.3 0.8 1.0 0.9 0.9 0.8 
Manufactures 12.7  11.9 13.0 13.4 13.0 13.4  
Iron and steel 0.5 0.6 0.7 0.6 0.4 0.5 
Chemicals 3.8  4.0 4.3 4.9 4.7 4.4  
5222 Other chemical elements 0.6 0.6 0.8 1.2 1.1 0.9 
5623 Mineral or chemical fertilizers, potassic  0.5 0.5 0.5 0.7 0.7 0.6  
5235 Nitrites; nitrates 0.3 0.4 0.4 0.5 0.4 0.4 
Other semi-manufactures 3.4  3.0 3.3 3.2 3.4 3.4  
6251 Tyres, pneumatic, new, of a kind used on 
motor cars 0.1 0.2 0.4 0.4 0.5 0.5 
6417 Paper, paperboard, cellulose wadding and webs  
of cellulose fibres, etc. 0.5 0.5 0.4 0.5 0.5 0.5  
6345 Fibreboard of wood or other ligneous materials, 
whether or not bonded 0.4 0.4 0.4 0.4 0.5 0.5 
Machinery and transport equipment 3.2  2.8 2.9 3.0 2.9 3.4  
Power-generating machinery 0.1 0.1 0.1 0.0 0.1 0.0 
Other non-electrical machinery 0.8  0.7 0.8 0.8 0.9 1.1  
7284 Machinery and mechanical appliances 
specialized for particular industries, n.e.s. 0.0 0.0 0.0 0.0 0.1 0.2 
Agricultural machinery and tractors 0.0  0.0 0.0 0.1 0.0 0.0  
Office machines and telecommunications equipment  0.5 0.4 0.4 0.3 0.4 0.5 
7643 Transmission apparatus for radio 0.0  0.0 0.1 0.1 0.2 0.2  
Other electrical machinery  0.3 0.3 0.4 0.4 0.3 0.3 
Automotive products 1.1  1.1 1.2 1.2 1.0 1.1  
7812 Motor vehicles for the transport of persons, 
n.e.s. 0.5 0.5 0.6 0.5 0.4 0.5 
Other transport equipment  0.3 0.2 0.2 0.2 0.2 0.3  WT/TPR/S/315 • Chile 
 
- 147 - 
 
  Description 2009  2010  2011  2012 2013 2014  
Textiles 0.3 0.3 0.3 0.2 0.2 0.2 
6584 Bedlinen, table linen, toilet linen and kitchen 
linen 0.1 0.1 0.1 0.1 0.0 0.1  
Articles of apparel and clothing accessories 0.3 0.4 0.5 0.5 0.5 0.5 
8462 Pantihose, tights, stockings, socks, etc.  0.0 0.0 0.1 0.1 0.1 0.1  
Other consumer goods 1.0 0.9 0.9 0.9 0.9 0.9 
8931 Articles for the conveyance or packing of 
goods, of plastics 0.1 0.1 0.1 0.1 0.2 0.1  
Other 1.6 1.5 1.8 2.1 1.8 1.4 
9310 Special transactions and commodities not 
classified according to kind 1.4 0.9 1.0 1.0 0.8 0.8  
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3). WT/TPR/S/315 • Chile 
 
- 148 - 
 
  Table A1. 2 Merchandise imports by product, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012 2013 2014  
 (US$ million) 
Total imports 42,805  59,207  74,694  80,067 79,173 72,344  
 (% of imports) 
Total primary products 33.0 31.5 34.5 32.0 31.3 32.1 
Agriculture 8.0  7.8 8.0 8.0 8.3 9.1  
Food 7.3 7.1 7.4 7.4 7.7 8.5 
0111 Meat of bovine animals, fresh or chilled  1.0 1.2 1.0 1.0 1.0 1.1  
0813 Oilcake and other solid residues (except 
dregs), whether or not ground or in the form of 
pellets, resulting from the extraction of fats or oils 
from oil-seeds, oleaginous fruits and germs of 
cereals 0.5 0.3 0.4 0.4 0.4 0.5 
0449 Other maize, unmilled 0.3  0.2 0.3 0.3 0.4 0.4  
0819 Food wastes and prepared animal feeds, n.e.s.  0.6 0.5 0.5 0.6 0.4 0.4 
0412 Other wheat (including spelt) and meslin, 
unmilled 0.4 0.3 0.3 0.4 0.4 0.3  
0989 Food preparations, n.e.s. 0.3 0.3 0.2 0.2 0.3 0.3 
0814 Flours, meals and pellets, of meat or meat offal  0.0 0.2 0.2 0.2 0.3 0.3  
Agricultural raw materials 0.7 0.7 0.6 0.6 0.6 0.7 
Mining 25.0  23.7 26.5 24.0 23.0 23.0  
Ores and other minerals 1.3 1.5 2.0 1.4 1.2 1.2 
2831 Copper ores and concentrates 0.2  0.7 0.9 0.6 0.5 0.5  
2878 Ores and concentrates of molybdenum, 
niobium, tantalum, titanium, vanadium and 
zirconium 0.9 0.7 0.9 0.6 0.4 0.5 
Non-ferrous metals 0.4  0.4 0.4 0.4 0.5 0.5  
6842 Aluminium and aluminium alloys, worked  0.2 0.2 0.2 0.2 0.3 0.4 
Fuels 23.2  21.8 24.0 22.3 21.3 21.2  
334 Petroleum products 9.4 10.1 10.3 10.2 9.0 8.7 
3330 Petroleum oils and oils obtained from 
bituminous minerals, crude 9.3 7.3 8.7 7.6 8.4 8.3  
3431 Natural gas, liquefied 0.4 1.7 2.2 2.0 1.3 1.6 
Manufactures 67.0  68.5 65.5 68.0 68.7 67.9  
Iron and steel 1.9 3.0 2.3 2.4 2.1 2.3 
Chemicals 11.0  10.1 10.0 10.1 10.3 10.9  
5429 Medicaments, n.e.s.  0.9 0.7 0.6 0.6 0.7 0.9 
5711 Polyethylene 0.7  0.8 0.7 0.7 0.7 0.7  
Other semi-manufactures 7.3 7.3 6.7 6.9 7.0 7.1 
6252 Tyres, pneumatic, new, of a kind used on 
buses or lorries 0.7 0.9 0.9 0.8 0.6 0.7  
6255 Other new pneumatic tyres 0.7 0.5 0.6 0.7 0.8 0.7 
Machinery and transport equipment 35.4  36.6 35.3 37.1 37.2 34.2  
Power-generating machinery 3.3 1.4 1.2 1.0 1.3 2.1 
7165 Generating sets 0.9  0.2 0.4 0.4 0.6 0.8  
Other non-electrical machinery 9.8 9.0 9.4 9.7 9.6 8.3 
7239 Parts, n.e.s., of the machinery of group 723 
(excluding heading 723.48) and of subgroup 744.3 0.9 0.7 0.7 0.6 0.6 0.5  
7232 Mechanical shovels, excavators and 
shovel-loaders, self-propelled 0.7 1.1 1.3 1.2 1.0 0.5 
7436 Filtering or purifying machinery and apparatus, 
for liquids or gases 0.6 0.3 0.3 0.4 0.3 0.5  
Agricultural machinery and tractors 0.3 0.4 0.5 0.4 0.5 0.5 
Office machines and telecommunications equipment  7.9 8.4 7.6 7.6 8.2 7.6  
7643 Transmission apparatus for radio 1.4 1.7 1.7 1.9 2.3 1.9 
7611 Television receivers, colou r 0.8  1.3 1.1 1.1 1.1 1.2  
7522 Digital automatic data-processing machines, 
containing in the same housing at least a central 
processing unit and an input and output unit, 
whether or not combined 1.1 1.1 1.1 1.0 1.2 0.9 
Other electrical machinery  3.4 2.9 2.7 2.8 3.1 3.0  
7731 Wire, cable (including co-axial cable) and other 
electric conductors; optical fibre cables  0.4 0.4 0.4 0.4 0.4 0.4 
Automotive products 8.4  12.3 11.8 11.5 11.9 10.5  
7812 Motor vehicles for the transport of persons, 
n.e.s. 3.3 5.3 5.0 4.7 5.6 5.2 
7821 Motor vehicles for the transport of goods  2.3 3.7 3.5 3.8 3.3 2.7  
7843 Other parts and accessories of the motor 
vehicles of groups 722, 781, 782 and 783 1.4 1.6 1.5 1.3 1.2 1.4 WT/TPR/S/315 • Chile 
 
- 149 - 
 
  Description 2009  2010  2011  2012 2013 2014  
Other transport equipment  2.5 2.6 2.6 4.6 3.0 2.6  
7924 Aeroplanes and other aircraft, 
mechanically-propelled (other than helicopters), 
of an unladen weight exceeding 15,000 kg 0.9 0.7 1.1 3.1 1.6 1.0 
Textiles 1.6  1.7 1.6 1.5 1.5 1.8  
Articles of apparel and clothing accessories 3.2 3.1 3.4 3.4 3.6 4.1 
Other consumer goods 6.6  6.6 6.3 6.5 7.0 7.5  
Other 0.0 0.0 0.0 0.0 0.0 0.0 
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3). WT/TPR/S/315 • Chile 
 
- 150 - 
 
  Table A1. 3 Merchandise exports by trading partner, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012 2013 2014  
 (US$ million)  
Total exports 55,459  71,106  81,438  77,965 76,684 76,639  
 (% of exports)  
America 32.2 29.7 30.9 31.5 32.5 31.2 
USA 11.2  9.7 11.1 12.3 12.8 12.2  
Other America 21.0 19.9 19.8 19.2 19.7 19.0 
Brazil 5.1  5.9 5.5 5.5 5.8 5.4  
Peru 2.5 2.3 2.4 2.3 2.5 2.4 
Plurinational State of Bolivia 2.1  1.6 1.9 2.0 2.2 2.1  
Mexico 2.7 2.7 2.2 1.7 1.7 1.7 
Canada 2.3  1.8 1.8 1.6 1.9 1.6  
Argentina 1.3 1.4 1.5 1.4 1.4 1.3 
Colombia 1.0  1.0 1.1 1.2 1.1 1.2  
Paraguay 0.5 0.6 0.7 0.6 0.6 0.7 
Ecuado r 0.8  0.7 0.7 0.7 0.7 0.7  
Venezuela 1.4 0.8 0.8 0.9 0.7 0.6 
Europe 18.9  18.8 19.3 17.4 16.6 16.1  
EU(28) 17.7 17.5 17.7 15.3 14.6 14.5 
Netherlands 3.7  3.7 4.6 3.5 3.3 3.0  
Italy 2.6 3.4 3.3 2.6 2.1 2.3 
Spain 2.0  1.8 2.0 2.1 1.8 1.9  
France 2.2 1.7 1.7 1.6 1.5 1.6 
Belgium 1.7  2.5 1.7 1.6 1.8 1.4  
EFTA 0.8 0.9 1.0 1.5 1.5 1.2 
Switzerland and Liechtenstein 0.7  0.7 0.9 1.4 1.4 1.1  
Other Europe 0.4 0.4 0.6 0.6 0.5 0.5 
Turkey 0.4  0.4 0.6 0.6 0.5 0.5  
Russian Federation 0.4 0.4 0.4 0.5 0.8 1.0 
Ukraine 0.0  0.0 0.0 0.0 0.1 0.0  
Africa 0.4 0.3 0.3 0.4 0.4 0.5 
South Africa 0.1  0.1 0.1 0.2 0.1 0.2  
Nigeria 0.1 0.0 0.1 0.1 0.1 0.1 
Middle East 0.4  0.4 0.6 0.6 0.8 0.7  
United Arab Emirates 0.1 0.1 0.1 0.1 0.2 0.2 
Bahrain 0.0  0.0 0.0 0.1 0.2 0.2  
Saudi Arabia 0.2 0.2 0.3 0.2 0.2 0.1 
Asia 46.9  49.7 47.8 49.0 48.4 50.0  
China 23.5 24.4 22.9 23.2 24.9 24.6 
Japan 9.2  10.9 11.2 10.7 9.9 10.0  
Korea, Republic of 5.8 5.9 5.5 5.8 5.5 6.2 
Chinese Taipei 2.7  2.9 2.5 2.3 2.1 2.4  
Thailand 0.3 0.4 0.4 0.4 0.3 0.4 
Hong Kong, China SA R 0.7  0.4 0.4 0.3 0.2 0.3  
Malaysia 0.2 0.3 0.3 0.3 0.3 0.2 
Singapore 0.2  0.1 0.1 0.1 0.2 0.1  
Other Asia 4.3 4.4 4.6 5.9 5.0 5.8 
India 2.2  2.5 2.4 3.3 2.9 3.5  
Australia 1.2 0.9 1.1 1.6 1.0 1.2 
Other 0.8  0.6 0.7 0.6 0.5 0.4  
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3). WT/TPR/S/315 • Chile 
 
- 151 - 
 
  Table A1. 4 Merchandise imports by trading partner, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012 2013 2014  
 (US$ million)  
Total imports 42,805  59,207  74,694  80,067 79,173 72,344  
 (% of imports)  
America 50.4 46.5 49.8 52.2 47.5 47.5 
USA 18.7  16.9 20.2 23.2 20.3 19.8  
Other America 31.7 29.5 29.6 29.0 27.2 27.7 
 Brazil 6.7  7.9 8.3 6.5 6.5 7.8  
 Argentina 10.9 7.9 6.3 6.6 5.0 4.0 
 Mexico 2.9  3.6 3.4 3.3 3.2 3.4  
 Ecuado r 2.2 1.4 1.7 2.7 3.2 3.4 
 Peru 1.7  2.3 2.7 2.6 2.2 2.1  
 Canada 1.7 1.2 1.2 1.3 1.9 1.8 
 Trinidad and Tobago 0.1  0.5 0.9 1.8 1.3 1.7  
 Colombia 3.3 2.6 3.0 2.7 2.2 1.6 
 Paraguay 1.0  1.1 0.8 0.3 0.7 1.0  
 Uruguay 0.2 0.3 0.2 0.3 0.3 0.2 
 Plurinational State of Bolivia 0.2  0.1 0.2 0.3 0.2 0.2  
 Guatemala 0.3 0.2 0.2 0.1 0.2 0.1 
 Venezuela 0.3  0.3 0.2 0.2 0.2 0.1  
Europe 16.8 14.2 14.6 14.2 17.3 15.3 
EU(28) 16.0  13.5 13.9 13.3 16.4 14.4  
Germany 3.6 4.0 4.2 3.6 4.0 3.6 
France 1.8  1.4 1.6 1.9 2.8 2.1  
Spain 2.5 1.6 1.5 1.7 2.2 2.0 
Italy 1.8  1.6 1.5 1.6 1.6 1.8  
United Kingdom 2.4 1.7 1.8 1.1 1.9 1.2 
EFTA 0.7  0.5 0.5 0.6 0.5 0.5  
Switzerland and Liechtenstein 0.5 0.4 0.4 0.4 0.4 0.4 
Other Europe 0.1  0.2 0.2 0.3 0.4 0.3  
Turkey 0.1 0.2 0.2 0.3 0.3 0.3 
Russian Federation 0.1  0.1 0.1 0.1 0.1 0.1  
Africa 0.7 1.3 1.0 0.5 0.2 0.8 
Angola 0.1  0.0 0.0 0.0 0.0 0.5  
South Africa 0.2 0.1 0.1 0.1 0.1 0.1 
Middle East 0.3  0.4 0.8 0.3 0.5 0.4  
Saudi Arabia 0.0 0.0 0.1 0.1 0.1 0.2 
Israel 0.2  0.2 0.1 0.1 0.2 0.2  
Asia 27.6 32.7 28.7 28.9 31.0 32.3 
China 14.5  16.8 16.9 18.0 19.7 20.9  
Japan 3.7 5.7 3.9 3.2 3.1 3.3 
Korea, Republic of 5.2  5.9 3.6 3.3 3.5 3.2  
Thailand 0.5 1.0 0.9 0.9 1.0 1.1 
Chinese Taipei 0.7  0.6 0.6 0.6 0.6 0.6  
Malaysia 0.3 0.2 0.2 0.3 0.3 0.4 
Hong Kong, China SA R 0.1  0.1 0.1 0.2 0.2 0.1  
Singapore 0.1 0.1 0.1 0.1 0.1 0.1 
Other Asia 2.4  2.2 2.3 2.4 2.5 2.7  
India 0.7 0.7 0.7 0.9 0.9 0.9 
Viet Nam 0.3  0.2 0.2 0.3 0.4 0.5  
Australia 0.6 0.6 0.7 0.6 0.5 0.4 
Other 4.1  4.8 4.9 3.8 3.5 3.6  
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3). WT/TPR/S/315 • Chile 
 
- 152 - 
 
  Table A2. 1 Principal notifications submitted pursuant to the WTO Agreements, 
1 January 2009 to 31 December 2014 
WTO Agreement/ 
Description of 
requirement Frequency Reference  
General Agreement on Tariffs and Trade 1994  
Article XXIV:7 
Regional agreements Ad hoc WT/REG272/N/1 (S/C/N/509) of 25.08.2009; WT/REG293/N/1 of 25.02.2011;  
WT/REG304/N/1 (S/C/N/613) of 01.12.2011; WT/REG303/N/1 (S/C/N/612) of 
01.12.2011; WT/REG312/N/1 (S/C/N/622) of 04.04.2012; 
WT/REG330/N/1 of 13.02.2013; WT/REG344/N/1 (S/C/N/697) of 18.06.2013;  
WT/REG356/N/1 (S/C/N/773) of 17.10.2014 
Article XVII:4(a) 
State trading Ad hoc G/STR/N/15/CHL of 25.09.2014; G/STR/N/14/CHL of 02.05.2012; 
G/STR/N/13/CHL of 15.09.2010 
Agreement on Agriculture 
Article 18.2 (Table MA:2) 
Imports under tariff quotas On an annual 
basis G/AG/N/CHL/44 of 06.08.2014; G/AG/N/CHL/42 of 24.06.2013; 
G/AG/N/CHL/38 of 04.05.2012; G/AG/N/CHL/36 of 27.05.2011; 
G/AG/N/CHL/33 of 12.05.2010 
Article 18.2 and 18.3 (Table 
DS:1) Domestic support On an annual 
basis G/AG/N/CHL/43 of 06.08.2014; G/AG/N/CHL/40 of 10.06.2013; 
G/AG/N/CHL/37 of 04.05.2012; G/AG/N/CHL/34 of 27.05.2011 
Article 18.2 (ES:1 and 
ES:2) Export subsidies On an annual 
basis G/AG/N/CHL/45 of 06.08.2014; G/AG/N/CHL/41 of 21.06.2013; 
G/AG/N/CHL/39 of 14.05.2012; G/AG/N/CHL/35 of 27.05.2011; 
G/AG/N/CHL/32 of 12.05.2010 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Annex B 
Sanitary/phytosanitary 
regulations Ad hoc  Series G/SPS/N/CHL/290 of 26.01.2009 to G/SPS/N/CHL/490 of 18.12.2014  
Agreement on Technical Barriers to Trade 
Article 2.10 Technical 
regulations (urgent) Immediately 
after adoption G/TBT/N/CHL/221 of 21.02.2013; G/TBT/N/CHL/219/Add.4 of 22.08.2014;  
G/TBT/N/CHL/219/Add.3 of 27.06.2014; G/TBT/N/CHL/219/Add.2 of 
24.03.2014; 
G/TBT/N/CHL/219/Add.1 of 17.01.2013; G/TBT/N/CHL/219 of 16.01.2013; 
G/TBT/N/CHL/203 of 01.06.2012; G/TBT/N/CHL/203/Add.1 of 08.06.2012 
Article 2.9 Technical 
regulations Ad hoc  G/TBT/N/CHL/121, 124, 125, 136, 145, 149, 150-158, 160-163, 172-175, 
178, 180, 185, 187, 188, 189, 190-192, 207, 211, 212, 215, 222-224, 233, 
243, 246, 254, 258, 259, 260-268, 282, 285, 286, 289, 290-292; 
G/TBT/N/CHL/95-99 
Articles 2.9 and 5.6 
Technical regulations Ad hoc G/TBT/N/CHL/281 of 08.08.2014; G/TBT/N/CHL/238 of 12.07.2013; 
G/TBT/N/CHL/237 of 10.07.2013; G/TBT/N/CHL/181 of 12.10.2011  
Article 5.6 Technical 
regulations Ad hoc  G/TBT/N/CHL/100-120, 122, 126-135, 137-144, 146, 147, 159, 164, 171, 
176, 177, 179, 182-184, 186, 193, 199, 200-202, 204-206, 208-210, 
213-214, 216-218, 220, 225-229, 230-232, 234-236, 239-242, 244-245, 
247-252, 255-257, 269-284, 287-288, G/TBT/N/CHL/93-94 of 13.07.2009  
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement) 
Article 16.4 Preliminary and 
final actions  Ad hoc G/ADP/N/250/ of 15.11.2013; G/ADP/N/246/ of 19.08.2013; 
G/ADP/N/242/ of 30.05.2013; G/ADP/N/232/ of 10.08.2012; 
G/ADP/N/221/ of 11.11.2011; G/ADP/N/204/ of 10.08.2010; 
G/ADP/N/198/ of 15.03.2010; G/ADP/N/182 of 19.02.2009 
Article 16.4 Anti-dumping 
actions On a 
semi-annual 
basis G/ADP/N/259/CHL of 13.10.2014; G/ADP/N/252/CHL of 28.03.2014; 
G/ADP/N/244/CHL of 07.10.2013; G/ADP/N/237/CHL of 13.02.2013; 
G/ADP/N/230/CHL of 02.08.2012; G/ADP/N/223/CHL of 02.04.2012; 
G/ADP/N/216/CHL of 14.10.2011; G/ADP/N/209/CHL of 13.04.2011; 
G/ADP/N/202/CHL of 18.10.2010; G/ADP/N/195/CHL of 01.03.2010; 
G/AD/N/188/CHL of 14.09.2009 
Article 16.5 Investigating 
authority Once only, 
subsequently 
notification of 
changes G/ADP/N/14/Add.36; G/SCM/N/18/Add.36 of 14.10.2013 
Article 18.5 Laws and 
regulations Once only, 
subsequently 
notification of 
changes G/ADP/N/1/CHL/2/Suppl.1; G/SCM/N/1/CHL/2/Suppl.1; 
G/SG/N/1/CHL/2/Suppl.2 of 13.05.2013 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation) 
Article 22.2 Legislation Once only, 
subsequently 
notification of 
changes G/VAL/N/1/CHL/2 of 25.02.2014  
Agreement on Rules of Origin 
Article 5 and Annex II, 
paragraph 4 Rules of origin 
and legislation Ad hoc G/RO/N/104 of 17.10.2014; G/RO/N/111 of 02.04.2014; 
G/RO/N/107 of 19.09.2013; G/RO/N/91 of 09.04.2013 
Agreement on Import Licensing Procedures 
Article 7.3 Questionnaire On an annual 
basis G/LIC/N/3/CHL/7 of 18.03.2013; G/LIC/N/3/CHL/6 of 16.09.2011; 
G/LIC/N/3/CHL/5 of 17.09.2010 WT/TPR/S/315 • Chile 
 
- 153 - 
 
  WTO Agreement/ 
Description of 
requirement Frequency Reference  
Agreement on Subsidies and Countervailing Measures  
Article 25.11 Actions taken 
with respect to 
countervailing duties On a 
semi-annual 
basis G/SCM/N/267 of 16.12.2013; G/SCM/N/250 of 20.12.2012; 
G/SCM/N/242 of 14.06.2012; G/SCM/N/235 of 20.12.2011  
Articles 25.12 and 16.5 
Investigating authority and 
domestic procedures 
governing investigations Once only G/ADP/N/14/Add.36; G/SCM/N/18/Add.36 of 14.10.2013 
Article 32.6 Laws and 
regulations Once only, 
subsequently 
notification of 
changes G/ADP/N/1/CHL/2/Suppl.1; G/SCM/N/1/CHL/2/Suppl.1; 
G/SG/N/1/CHL/2/Suppl.2 of 13.05.2013 
Article 25.1 Subsidy 
programmes On an annual 
basis G/SCM/N/253/CHL of 17.02.2014; G/SCM/N/220/CHL of 27.07.2011; 
G/SCM/N/186/CHL of 27.10.2009 
Agreement on Safeguards 
Article 12.1(a) Initiation of 
an investigation relating to 
serious injury or threat 
thereof Ad hoc G/SG/N/6/CHL/15/Corr.1 of 19.06.2013; G/SG/N/6/CHL/15 of 06.06.2013;  
G/SG/N/6/CHL/14; G/SG/N/8/CHL/6 of 23.04.2013; 
G/SG/N/11/CHL/6; G/SG/N/6/CHL/13; G/SG/N/7/CHL/10 of 02.05.2012; 
G/SG/N/6/CHL/12 of 18.09.2009 
Article 12.1(b) Finding of 
serious injury or threat 
thereof Ad hoc G/SG/N/6/CHL/14; G/SG/N/8/CHL/6  of 23.04.2013; G/SG/N/8/CHL/5; 
G/SG/N/10/CHL/8; G/SG/N/11/CHL/7 of 04.09.2012 
Article 12.1(c) Adoption of 
a safeguard measure Ad hoc G/SG/N/8/CHL/5; G/SG/N/10/CHL/8; G/SG/N/11/CH L/7 of 04.09.2012  
Article 12.4 Adoption of a 
provisional safeguard 
measure Prior to adoption 
of measure G/SG/N/7/CHL/11/Suppl.1 of 29.04.2013; G/SG/N/7/CHL/11; 
G/SG/N/11/CHL/8 of 23.04.2013; G/SG/N/11/CHL/6; G/SG/N/6/CHL/13; 
G/SG/N/7/CHL/10 of 02.05.2012; 
G/SG/N/7/CHL/9/Suppl.1 of 03.02.2010; G/SG/N/7/CHL/9 of 15.10.2009 
Article 12.6 Laws and 
regulations Once only, 
subsequently 
notification of 
changes G/ADP/N/1/CHL/2/Suppl.1; G/SCM/N/1/CHL/2/Suppl.1; 
G/SG/N/1/CHL/2/Suppl.2 of 13.05.2013 
Article 12 Termination of an 
investigation  G/SG/N/9/CHL/8 of 30.10.2013; G/SG/N/9/CHL/7  of 07.08.2013 
General Agreement on Trade in Services 
Article V:7(a) Economic 
integration agreements Once only S/C/N/773 (WT/REG356/N/1) of 17.10.2014; S/C/N/697 (WT/REG344/N/1) of 
18.06.2013; S/C/N/622 (WT/REG312/N/1) of 04.04.2012; 
S/C/N/613 (WT/REG304/N/1) of 01.12.2011; S/C/N/612 (WT/REG303/N/1) of 
01.12.2011; S/C/N/577 of 22.11.2010; S/C/N/509 (WT/REG272/N/1) of 
25.08.2009 
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)  
Article 63.2 Laws and 
regulations Notification of 
existing laws 
and regulations 
and changes IP/N/1/CHL/C/10 of 08.09.2009; IP/N/1/CHL/I/9 of 08.09.2009; 
IP/N/1/CHL/I/8 of 07.09.2009; IP/N/1/CHL/I/7 of 07.09.2009; 
IP/N/1/CHL/I/6 of 07.09.2009; IP/N/1/CHL/O/2 of 07.09.2009; 
IP/N/1/CHL/2 of 01.09.2009 
Source: WTO Secretariat. WT/TPR/S/315 • Chile 
 
- 154 - 
 
  Table A2. 2 Overview of Chile's regional trade agreements that entered into force 
between 2009 and 2014 
Trade agreement 
CHILE–AUSTRALIA  
Parties: Chile and Australia  
Date of signature/date of entry 
into force: 30 July 2008/6  March  2009 
Deadline for full tariff elimination 
(Chile): 1 January 2015  
Percentage of duty-free lines 
(Chile): 87.5% in 2009 and 100% in 2015. The category "Sug ar" is excluded from tariff elimination. 
This category contains six products for which the ad valorem tariff (6%), but not the specific 
duty, is eliminated progressively. 
Provisions relating to trade in 
goods: Market access; rules of origin; customs valuation; special regimes; sanitary and 
phytosanitary measures; technical regulations, standards and conformity assessment 
procedures; safeguard measures (global and for balance-of-payments purposes); 
anti-dumping and countervailing measures; subsidies and State aid; customs procedures. 
Provisions relating to trade in 
services: Cross-border trade in services; telecommunications services; financial services; movement 
of natural persons. 
Other provisions: Transparency; exceptions; taxation, government procurement, intellectual property rights; 
electronic commerce (electronic transmissions); dispute settlement; institutional 
framework; competition policy; cooperation. 
Relevant WTO documents: Notification: WTO documents WT/REG263/N/1 and S/C/N/484  
Factual presentation: WTO document WT/REG263/1 
Questions and replies: WTO document WT/REG263/2 
Consideration of the Agreement: WTO document WT/REG263/M/1  
Website: http://www.direcon.cl/index.php?accion=tlc_australia  
http://www.austlii.edu.au/au/other/dfat/treaties/notinforce/2008/6/index.html 
CHILE–CHINA (Services and investment)  
Parties: Chile and China  
Date of signature/date of entry 
into force: 13 April 2008/1  August  2010 (services)  
8 February 2014 (investment) 
Deadline for full tariff elimination 
(Chile): Not applicable 
Percentage of duty-free lines 
(Chile): Not applicable 
Provisions relating to trade in 
goods: Not applicable 
Provisions relating to trade in 
services: Market access; temporary movement of business persons; horizontal and secto r-specific 
liberalization commitments (based on a positive-list approach). The scope of the Agreement 
is narrower than that of the GATS in that it excludes subsidies, financial services and 
maritime cabotage. But it is also wider than the scope of the GATS in that it includes 
specialty air services, airport operation services and ground handling services, three 
subsectors not explicitly listed in paragraph 3 of the GATS air transport annex. The 
Agreement also excludes government procurement. 
Other provisions: The Supplementary Agreement on Investment, which entered into force on 
8 February 2014, introduces provisions on the settlement of disputes between investors and 
the State (with the possibility of recourse to international arbitration), performance 
requirements and the principle of non-discrimination between foreign and national investors.  
Relevant WTO documents: Notification: WTO document S/C/N/577  
Factual presentation: WTO document WT/REG230/3 
Questions and replies: WTO documents WT/REG230/4 and WT/REG230/5 
Consideration of the Agreement: WT/REG230/M/2  
Website: http://www.direcon.gob.cl  
http://fta.mofcom.gov.cn/topic/enchile.shtml 
CHILE-COLOMBIA  
Parties: Chile and Colombia  
Date of signature/date of entry 
into force: 27 Novembe r 2006/8  May 2009 
Deadline for full tariff elimination 
(Chile): 1 January 2012  
Percentage of duty-free lines 
(Chile): 98.30% in 2009 (7,552 lines had already been lib eralized under the ACE 24) and 100% in 
2012. Tariff elimination excludes the specific duty  applicable to products subject to the price 
band mechanism.  
Provisions relating to trade in 
goods: Market access, rules of origin; sanitary and  phytosanitary measures; technical barriers to 
trade; global and bilateral safeguards; anti-dumping and countervailing measures; subsidies 
and State aid; customs procedures; trade facilitation. 
Provisions relating to trade in 
services: Market access; commercial presence ; movement of natural persons. 
Other provisions: Investment; transparency; current payments and capital movements; exceptions; dispute 
settlement; government procurement; electronic commerce; labour issues; environmental 
issues; cooperation. WT/TPR/S/315 • Chile 
 
- 155 - 
 
  Trade agreement 
Relevant WTO documents: Notification: WTO documents WT/REG272/N/1 and S/C/N/509  
Factual presentation: WTO documents WT/REG272/1 and WT/REG272/1/Rev.1 
Questions and replies: WTO documents WT/REG272/2 and WT/REG272/3 
Consideration of the Agreement: WTO document WT/REG272/M/1  
Website: http://www.direcon.cl  
http://www.mincit.gov.co/tlc/publicaciones.php?id=11952 
CHILE–HONG KONG, CHINA  
Parties: Chile and Hong Kong, China  
Date of signature/date of entry 
into force: 7 Septembe r 2012/9  Octobe r 2014 
Deadline for full tariff elimination 
(Chile): 1 January 2016  
Percentage of duty-free lines 
(Chile): 88.02%, or 6,852 tariff lines, at the date of entry into force.  
9.65% will be liberalized in three years: 33% in 2014 (1st year), 67% in 2015 (2nd year) and 
100% in 2016 (3rd year). 2.34% of tariff lines, including products subject to price bands, are 
excluded from the tariff preferences.  
Provisions relating to trade in 
goods: Tariff reductions, rules of origin; customs procedures, sanitary and phytosanitary measures; 
technical barriers to trade; countervailing measures.  
Provisions relating to trade in 
services: Cross-border trade in services; local presence; financial services. 
Other provisions: Government procurement; competition policy, environment, transparency; dispute 
settlement. 
Relevant WTO documents: Notification: WTO documents WT/REG356/N/1 and S/C/N/773  
Website: http://www.direcon.gob.cl  
http://www.tid.gov.hk/english/trade_relations/hkclfta/index.html 
CHILE-GUATEMALA 
Parties: Chile and Guatemala  
Date of signature/date of entry 
into force: 19 Octobe r 1999 (Agreement) and 7  Decembe r 2007 (Bilateral Protocol)/23 March 2010  
Deadline for full tariff elimination 
(Chile): 1 January 2024  
Percentage of duty-free lines 
(Chile): 65.3% in 2010 and 92.9% in 2024. 517 tariff lines (6.7% of Chile's tariff schedule) and 26 
tariff lines with preferences (food preparatio ns, animal feed, etc.) are excluded from 
elimination. For products subject to price bands, wheat and wheat flour are two of the tariff 
lines excluded from elimination. In the case of sugar, only the specific duty is excluded. 
Provisions relating to t rade in 
goods: Market access; rules of origin; customs procedures; sanitary and phytosanitary measures; 
standardization measures, metrology and authorization procedures; safeguards (bilateral 
and global, for balance-of-payment purposes); anti-dumping and countervailing measures; 
subsidies and State aid. 
Provisions relating to trade in 
services: Cross-border trade in services; temporary movement of business persons; local presence. 
The Agreement does not cover financial services. 
Other provisions: Transparency; exceptions; government procurement; competition policy; dispute 
settlement; intellectual property rights (recognition of geographical indications); 
investment. Within two years from the entry into force of the Agreement, the Parties shall 
examine the possibility of developing and expanding the rules and disciplines on investment.  
Relevant WTO documents: Notification: WTO documents WT/REG312/N/1 and S/C/N/622  
Factual presentation: WTO documents WT/REG312/1 and WT/REG312/Rev.1 
Questions and replies: WTO document WT/REG312/2 
Consideration of the Agreement: WTO document WT/REG312/M/1  
Website: http://www.direcon.gob.cl  
http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales 
CHILE-MALAYSIA 
Parties: Chile and Malaysia  
Date of signature/date of entry 
into force: 13 Novembe r 2010/25  February  2012 (for Chile)  
Deadline for full tariff elimination 
(Chile): 25 February 2016  
Percentage of duty-free lines 
(Chile): 90.2% in 2012 and 98.9% in 2016. 86 tariff lines (1.1% of Chile's tariff schedule), including 
products subject to the price band mechanism, are excluded from elimination. 
Provisions relating to trade in 
goods: Market access; rules of origin; customs administration; sanitary and phytosanitary 
measures; technical barriers to trade; safeguards (global, bilateral and for 
balance-of-payments purposes); anti-dumping and countervailing measures; subsidies and 
State aid; customs procedures. 
Provisions relating to trade in 
services: Not applicable 
Other provisions: Transparency; exceptions; intellectual property rights (recognition of geographical 
indications); cooperation; environment; dispute settlement. Within two years from the entry 
into force of the Agreement, the Parties shal l begin consultations on the inclusion of a 
chapter on services and a chapter on investment. Future negotiations on financial services 
are also envisaged. WT/TPR/S/315 • Chile 
 
- 156 - 
 
  Trade agreement 
Relevant WTO documents: Notification: WTO document WT/REG330/N/1  
Factual presentation: WTO document WT/REG330/1 
Questions and replies: WTO documents WT/REG330/2 and WT/REG330/3 
Consideration of the Agreement: WTO document WT/REG330/M/1 
Website: http://www.direcon.gob.cl  
http://www.miti.gov.my 
CHILE-NICARAGUA 
Parties: Chile and Nicaragua  
Date of signature/date of entry 
into force: 19 Octobe r 1999 (Agreement) and 2  February  2011 (Bilateral Protocol)/19 Octobe r 2012  
Deadline for full tariff elimination 
(Chile): 1 January 2021  
Percentage of duty-free lines 
(Chile): 97.1% in 2012 and 99.5% in 2021. 31 tariff lines are excluded from elimination, including 
two lines subject to the price band system, for which both the ad valorem and specific duty 
are excluded. For the sugar processing category, the ad valorem tariff, but not the specific 
duty, is liberalized. 
Provisions relating to trade in 
goods: Market access; rules of origin; sanitary and phytosanitary measures; standardization 
measures, metrology and authorization procedures; safeguards (global, bilateral, for 
balance-of-payments purposes); anti-dumping and countervailing measures; subsidies and 
State aid; customs procedures. 
Provisions relating to trade in 
services: Cross-border trade in services; local presence; temporary movement of business persons; 
investment (the Agreement envisages extending the coverage of disciplines on investment). 
Other provisions: Competition policy; government procurement; transparency, dispute settlement; 
exceptions; intellectual property rights (recognition of geographical indications). 
Relevant WTO documents: Notification: WTO document WT/REG344/N/1 and S/C/N/697  
Factual presentation: WTO document WT/REG344/1 and WT/REG344/1/Rev.1 
Questions and replies: WTO document WT/REG344/2 
Consideration of the Agreement: WTO document WT/REG344/M/1  
Website: http://www.direcon.gob.cl  
http://www.mific.gob.ni/COMERCIOEXTERI OR/ACUERDOSCOMERCIALESVIGENTES/TLCNica
raguaChile/tabid/782/language/en-US/Default.aspx 
CHILE-PERU 
Parties: Chile and Peru  
Date of signature/date of entry 
into force: 22 August 2006/1  March  2009 
Deadline for full tariff elimination 
(Chile): 1 July 2016 
Percentage of duty-free lines 
(Chile): 95.8% in 2009 and practically 100.0% in 2016. Three tariff lines (less than 0.1% of Chile's 
tariff schedule) are excluded from elimination: retreated tyres, used tyres, and used 
clothing. For products subject to price bands, only the ad valorem duty is liberalized. 
Provisions relating to trade in 
goods: Market access; rules of origin; sanitary and phytosanitary measures; technical barriers to 
trade; safeguards (global and bilateral); anti-dumping duties and countervailing duties; 
subsidies and State aid; customs procedures. 
Provisions relating to trade in 
services: Cross-border trade in services (market access, national treatment and MFN treatment); 
local presence; temporary movement of business persons; senior managers and board of 
directors; expropriation and compensation. Financial services, air transport and government 
procurement are excluded from this Agreement. 
Other provisions: Regulatory provisions; transparency; exceptions; intellectual property rights; competition; 
public pricing policies, cooperation and trade promotion; dispute settlement; investment. 
The Agreement provides for the initiation of negotiations on government procurement. 
Relevant WTO documents: Notification: WTO document WT/REG304/N/1 and S/C/N/613  
Factual presentation: WTO document WT/REG304/1 
Questions and replies: WTO document WT/REG304/2 
Consideration of the Agreement: WTO document WT/REG304/M/1 
Website: http://www.direcon.gob.cl  
http://www.acuerdoscomerciales.gob.pe/index .php?option=com_content&view=category&la
yout=blog&id=72&Itemid=95 
CHILE-TURKEY   
Parties: Chile and Turkey  
Date of signature/date of entry 
into force: 14 July 2009/1  March  2011 
Deadline for full tariff elimination 
(Chile): 1 January 2017  
Percentage of duty-free lines 
(Chile): 94.3% in 2011 and 98.3% in 2017. 131 tariff lines (1.7% of Chile's tariff schedule), 
including products subject to price bands, are excluded from elimination. The average final 
tariff applicable to these lines shall be the same as the MFN tariff. 
Provisions relating to trade in 
goods: Market access; rules of origin; sanitary and phytosanitary measures; technical regulations, 
standards and conformity assessment procedures; safeguards (general, for 
balance-of-payments purposes); anti-dumping and countervailing measures. 
Provisions relating to trade in 
services: Not applicable WT/TPR/S/315 • Chile 
 
- 157 - 
 
  Trade agreement 
Other provisions: Intellectual property rights; cooperation; dispute settlement; transparency; exceptions. The 
Parties shall begin exploratory talks on trade in services and investment no later than two 
years following the entry into force of the Agreement. According to the Parties, such 
negotiations have not yet begun (WT/REG293/1). 
Relevant WTO documents: Notification: WTO document WT/REG293/N/1  
Factual presentation: WTO document WT/REG293/1 
Questions and replies: WTO document WT/REG293/2 
Consideration of the Agreement: WTO document WT/REG293/M/1  
Website: http://www.direcon.gob.cl  
http://www.dtm.gov.tr/dtmadmin/upload/AB/SerbestTicaretDb/sili/ingilizce.pdf 
Source: WTO Secretariat. WT/TPR/S/315 • Chile 
 
- 158 - 
 
  Table A3. 1 Customs destinations 2014a 
Regime 
Temporary admission  
The National Customs Service may authorize foreign goods to enter the country temporarily without losing their foreign status. 
The National Director of Customs establishes the period for which temporary admission is authorized and the extensions which 
may be granted on a once-only basis for a period not exceeding one year. The President of the Republic may, however, 
authorize extensions by means of a supreme decree.  
The temporary admission of goods is subject to a  fee equivalent to a percentage of the total amount of customs levies and 
taxes that would be payable upon the definitive importation of the goods, determined according to how long the goods are going to remain in the country. These percentages are as follows: from 1 day to 15 days: 2.5%; from 16 days to 30 days: 5.0%; from 31 days to 60 days: 10%; from 61 da ys to 90 days: 15%; from 91 days to 120 days: 20%; 
for 121 days or more: 100%. This fee must be paid before the goods are removed from the cust oms storage area. Goods used 
in exhibitions, shows or sight-seeing tours, livestock brought from neighbouring countries for grazing purposes, ranch goods, containers, and foreign civil ships and aircraft, are not subject to the payment of this fee. 
Special storage  
The National Director of Customs may, ex officio or at the requ est of interested parties, authorize the use, for up to 90 days,  
of certain special storage areas for goods, without prior payment of the duties and taxes arising from their importation. 
The use of a special storage area shall only be granted for goods with a customs value of US$ 10,000 or more. 
The special storage regime shall not apply to goods such as fish, crustaceans and molluscs; milk and cream; vegetable oils; meat and edible offal; fruit; and live plants and floricultural products. 
The storage of goods, except for those imported under Chapter 0 of the Customs Tariff, i.e. those exempt from tariffs, shall,  
on a daily basis, from the 31st day, accrue interest amounting to the daily equivalent of the monthly average interest rate 
charged by the financial system for non-adjustable operations of 30 to 89 days, as set by the Central Bank of Chile, on the 
corresponding duties and taxes resulting from the importation of the goods.b 
Temporary admission for inward processing 
Temporary admission for inward processing entails the entry,  into national territory and approved areas in factories 
or industrial establishments, of raw materials, parts, components or semi-finished products, without payment of duties and 
other import charges and VAT, to be processed, assembled, in tegrated, refined, worked or subjected to other finishing 
processes, with a view to the export of the resulting products. This regime is valid for 60 daysc and 180 daysd, in both cases 
from the date of notification of the declaration. However, the National Director of Customs may extend these periods on the 
basis of a substantiated request from the party concerned.  
If, prior to the expiry of the temporary admission period or any extensions thereto, it is deemed impossible to proceed with 
exportation, due to the foreign buyer's failure to comply with the contract or the termination of the contract as a result of p rice 
fluctuations in the destination market, the customs service sh all authorize the importation of the raw materials, parts, 
components or elements subject to this duty-suspension regime, upon payment of the relevant duties, taxes and levies and 
a fee of 1% of the customs value of the goods for every 30 days  or period exceeding 15 days from the granting of temporary 
admission. Finished products that are imported shall be subject to the duties, taxes and other levies that apply to the raw materials, parts and components or elements used to produce them, without taking into account the higher value that they may have obtained as a result of the procedures mentioned above. 
Re-entry of goods 
The National Director of Customs may authorize, by means of a resolution, the re-entry of goods on a duty-free and tax-free 
basis, when it is proven that such goods are domestic or imported, that they exited temporarily under a Temporary Exit 
Declaration or that, for justified reasons, they were not subject to the temporary exit regime.  
Transit 
The transiting of foreign goods through national territory, on a journey that begins and ends abroad, may be formalized 
through the International Freight Document - Transit Declaration (MIC-DTA).e 
Transhipment 
Domestic, imported and foreign goods may be transhipped in order to reach their final destination. The transfer of goods from 
one vehicle to another shall be formalized by means of a transhipment declaration signed by a mandated dispatcher.  
Redirection  
This entails shipping foreign goods from one Customs point in the country to another for the purposes of their immediate 
importation or continued storage.  
a Customs Ordinance (DFL No. 30) of 2004 of the Ministry of Finance an d amendments thereto. 
b Resolution No. 3629 of 8 June 2009 and Resolution No. 8561 of 30 October 2012. 
c Ministry of Finance Decree No. 135 of 18 April 1983. d Ministry of Finance Decree No. 473 of 28 August 2003. e Resolution No. 3517 of 11 April 2013. 
Source: Customs Ordinance (DFL No. 30) of 2004 and amen dments thereto; Resolution No. 3629 of 8 June 2009; 
Resolution No. 8561 of 30 October 2012; Ministry of Finance Decree No. 135 of 18 April 1983 and Ministry of Finance 
Decree No. 473 of 28 August 2003. WT/TPR/S/315 • Chile 
 
- 159 - 
 
  Table A3. 2 Analysis of the MFN tariff, 2014a 
Product description MFN 
Average 
bound tariffb 
(%) No. of 
lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
Total 7,785  6.0 0 - 6 0.1 25.1  
HS 01-24 1,978  6.0 6 - 6 0.0 25 - 98 
HS 25-97 5,807  6.0 0 - 6 0.1 0 -  25 
By WTO category      
Agricultural products 1,413  6.0 6 - 6 0.0 25 -  98 
 - Animals and animal products  154 6.0 6 - 6 0.0 25 - 25 
 - Dairy products 52  6.0 6 - 6 0.0 25 –  31.5 
 - Fruit, vegetables and garden  produce 510 6.0 6 - 6 0.0 25 - 25 
 - Coffee and tea 34  6.0 6 - 6 0.0 25 -  25 
 - Cereals and cereal preparations 155 6.0 6 - 6 0.0 25 – 31.5 
 - Oilseeds, fats and oils and thei r products 117  6.0 6 - 6 0.0 25 –  31.5 
 - Sugar and confectionery 30 6.0 6 - 6 0.0 25 - 98 
 - Beverages, alcohol and tobacco 116  6.0 6 - 6 0.0 25 -  25 
 - Cotton 5 6.0 6 - 6 0.0 25 - 25 
 - Other agricultural products  240 6.0 6 - 6 0.0 25 -  25 
Non-agricultural products (including petroleum) 6,372  6.0 0 - 6 0.1 0 - 25 
 - Non-agricultural products (excluding 
petroleum) 6,343  6.0 0 - 6 0.1 0 -  25 
 - - Fish and fish products 634 6.0 6 - 6 0.0 25 - 25 
 - - Mineral products and metals 1,009  6.0 6 - 6 0.0 0 -  25 
 - - Chemicals and photographic products 1,330  6.0 6 - 6 0.0 25 - 25 
 - - Wood, wood pulp, paper and furniture 393  5.9 0 - 6 0.1 25 -  25 
 - - Textiles 674 6.0 6 - 6 0.0 25 - 25 
 - - Clothing 292  6.0 6 - 6 0.0 25 -  25 
 - - Leather, rubber, footwear and travel 
articles 193 6.0 6 - 6 0.0 25 - 25 
 - - Non-electrical machinery 674  6.0 0 - 6 0.0 23 -  25 
 - - Electrical machinery 353 6.0 0 - 6 0.1 25 - 25 
 - - Transport equipment 313  5.5 0 - 6 0.3 3 -  25 
 - - Non-agricultural products n.e.s. 478 6.0 0 - 6 0.0 15 - 25 
 - Petroleum 29  6.0 6 - 6 0.0 25 -  25 
By ISIC sectorc      
Agriculture and fishing 820  6.0 6 - 6 0.0 0 –  31.5 
Mining 117 6.0 6 - 6 0.0 25 - 25 
Manufacturing 6,847  6.0 0 - 6 0.1 3 -  98 
By HS section      
01 Live animals and animal products 742  6.0 6 - 6 0.0 25 –  31.5 
02 Vegetable products 704 6.0 6 - 6 0.0 25 – 31.5 
03 Fats and oils 68  6.0 6 - 6 0.0 25 –  31.5 
04 Prepared foodstuffs, etc. 464 6.0 6 - 6 0.0 25 - 98 
05 Mineral products 195  6.0 6 - 6 0.0 0 -  25 
06 Products of the chemical or allied 
industries 1,219  6.0 6 - 6 0.0 25 - 25 
07 Plastics and rubbe r 295  6.0 6 - 6 0.0 25 -  25 
08 Hides and skins 74 6.0 6 - 6 0.0 25 - 25 
09 Wood and articles of wood  137 6.0 6 - 6 0.0 25 -  25 
10 Wood pulp, paper, etc. 200 5.9 0 - 6 0.1 25 - 25 
11 Textiles and textile articles  949 6.0 6 - 6 0.0 25 -  25 
12 Footwear, hats and other headgea r 60 6.0 6 - 6 0.0 25 - 25 
13 Articles of stone 166  6.0 6 - 6 0.0 25 -  25 
14 Precious stones, etc. 56 6.0 6 - 6 0.0 25 - 25 
15 Base metals and articles of base metal 613  6.0 6 - 6 0.0 25 -  25 
16 Machinery and mechanical appliances 1,042  6.0 0 - 6 0.0 23 - 25 
17 Transport equipment 326  5.5 0 - 6 0.3 3 -  25 
18 Precision instruments 247 6.0 6 - 6 0.0 25 - 25 
19 Arms and ammunition 21  6.0 6 - 6 0.0 25 -  25 
20 Miscellaneous manufactured articles 200 6.0 6 - 6 0.0 15 - 25 
21 Works of art, etc. 7  6.0 6 - 6 0.0 25 -  25 
a For price band products, 6% was used. 
b The bindings are given in HS 07 and the applied rates in  HS 2012; consequently, there may be differences in the 
number of lines included in the analysis. 
c ISIC (Rev.2), except for electricity (one line). 
Source: WTO Secretariat estimates, based on data provided by the Chilean authorities. WT/TPR/S/315 • Chile 
 
- 160 - 
 
  Table A3. 3 Preferential tariff quotas, 2014a 
Product Out-o f-
quota tariff  
(%) Quota volume (tonnes) 
2009 2010 2011 2012 2013 2014 
Chile-United States (2004)         
Chicken and turkey meat 
020713; 020714; 020726; 020727  0b 9,261  9,724  10,210  10,721 Free 
trade Free 
trade 
Chile-Japan (2007)         
Meat of bovine animals, frozen; 
02022000; 02023010; 02023020; 
02023090 6 2,600  3,250  4,000  4,000 4,000 4,000  
Meat and edible offal, of swine; 
02031900; 02032210; 02032220; 
02032290; 02032910; 02032920; 
02032930; 02032990; 02064910; 
02064990 
Prepared meat, of swine; 
16024100; 16024200; 16024900 6 45,500  52,250  60,000  60,000 60,000 60,000  
Edible offal, of bovine animals, frozen; 
02062100; 02062200; 02062900 6 675 712 750 750 750 750 
Cuts and offal, of fowls of the species 
Gallus domesticus , frozen 02071410; 
02071421; 02071422; 02071423; 
02071424; 02071429; 02071430 0b 4,500  5,000  5,500  5,500 5,500 5,500  
Tomato paste; 20029011; 20029012; 
20029019 6 4,100  4,300  5,000  5,000 5,000 5,000  
Chile-Honduras (2008)         
Cane or beet suga r; 17019100; 
17019910; 17019920; 17019990 Price 
band 1,000  1,000  1,000  1,000 1,000 1,000  
Chile-Colombia (2009)         
Meat of bovine animals; 02013000 0 3,000  3,300  3,630  Free 
trade Free 
trade Free 
trade 
Milk; 04011000 0 1,000  1,000  1,000  Free 
trade Free 
trade Free 
trade 
Sugarc        
17019100 0 21,000  21,000  21,000  21,000 21,000 21,000  
17019910 0 6,000  6,000  6,000  6,000 6,000 6,000  
17019920 0 6,000  6,000  6,000  6,000 6,000 6,000  
17019990 0 6,000  6,000  6,000  6,000 6,000 6,000  
Chile-Guatemala (2010)         
Milk in powder; 04021000; 04022111; 
04022112; 04022113; 04022114; 
04022115; 04022116; 04022117 6  200.0  206.0  212.2 218.5 225.1  
Milk in powder; 04022118 6  350.0  360.5  371.3 382.5 393.9  
Condensed milk; 04029910 6  500.0  525.0  551.3 578.8 607.8  
Concentrated milk, cream; 04039000; 
04049000 6  100.0  103.0  106.1 109.3 112.6  
Butter; 04051000 6  100.0  103.0  106.1 109.3 112.6  
Cow's milk (Gouda); 04069010  6  30.0 36 42 48 54 
Ripened or cured goat's cheese, ripened 
or cured sheep's cheese; 04069090 6  200.0  210.0  220.5 231.5 243.1  
Cream with a basis of cooked milk with 
added sugar ( dulce de leche ); 19019011 6  40.0 41.2 42.4 43.7 45.0 
Juices and purées of tomato; 20029011; 
20029012; 20029019; 20029090 6  40.0 40.0 40.0 40.0 40.0 
Chile-EU (2003)         
Fresh hake, chilled; 030269 6 5,000  5,000  5,000  5,000 5,000 5,000  
Smoked salmon; 030530; 030541 6 40 40 40 40 40 40 
Cheese; 040610; 040620; 040630; 
040640; 040690 6 2,025  2,100  2,175  2,250 2,325 2,400  
Olive oil; 150910; 150990; 151000 0d 4,050  4,200  4,350  4,500 n/a n/a 
Tuna loins; 160414; 160420 6 150 150 150 150 150 150 
Chile - EFTA        
Cheese, granted to Norway; 0406 6 200 200 200 200 200 200 
n/a Not available. 
a Agreements notified to the WTO. b The tariff decreased gradually. In 2009 it was 12.5%; in 2010, 9.3%; in 2011, 6.2%; in 2012, 6%; and in 2013, 0%. c Pooled quota of 6,000 tonnes for subheadings HS 170191 and HS 170199 and additional quota of 15,000 tonnes 
for subheading HS 170191. 
d The tariff decreased gradually. In 2009 it was 2.22%; in 2010, 1.68%; in 2011, 1.14%; in 2012, 0.6%; and in 2013, 0%. 
Source: WTO Secretariat, based on Agreements notified to the WTO and information provided by the authorities. WT/TPR/S/315 • Chile 
 
- 161 - 
 
  Table A3. 4 Chilean Economic Developmen t Agency (CORFO) Support Programmes 
Programme Beneficiary Support  
Cooperative Promotion  
Projects (Profo) Companies with a taxable cash income 
or net annual sales of more than 2,400 UF but less than 100,000 UF. Subsidy financing up to 70% of the cost of diagnostic 
activities and the development of a work plan (ceiling US$8 million) and up to 70% of the implementation phase (ceiling US$40 million). 
Technological Innovation for  
Businesses Chilean companies; naturals persons 
who are business persons and 
entrepreneurs. Non-repayable subsidy, with an overall ceiling of 
US$200 million per project, to co-finance product 
and/or process development or improvement projects. 
CORFO Credit for Micro and  
Small Enterprises Natural or legal persons producing 
goods and services, with annual sales of less than 25,000 UF. Credit to finance investments and working capital for 
small businesses and micro and small enterprises. Maximum of 5,000 UF over a 120-month period. 
Fund for Development and  
Growth Small and medium-sized enterprises 
(SMEs) Investment funds that finance the development of SMEs 
with high growth potential. Financing in the form of 
capital contributions or loans. 
CORFO Guarantee  
Investment and Working 
Capital (FOGAIN) Private companies producing goods 
and services, with sales of 
up to 100,000 UF per year; emerging 
companies with projected sales of up to 100,000 UF; and investment projects in indigenous areas. CORFO gives the company a partial guarantee vis-à-vis
 
the financial institution (bank or cooperative association) 
in order to obtain a loan, and serves as backing if the 
company fails to pay back the loan. The percentage of the guarantee depends on what is required by the financial entity when enterprises apply for funding. 
Technological Absorption for  
Innovation in SMEs  SMEs with annual sales not 
exceeding 100,000 UF. Support enabling SMEs to conduct technological 
prospection activities, and technical advice on the use of 
technology and investment, for up to 80% of the total 
cost of the project, with a ceiling of US$15 million. 
SME Innovation Voucher  
(under review) SMEs (national enterprises, 
cooperatives or individual entrepreneurs) with annual sales not exceeding 100,000 UF.  Co-financing of up to 90% of the cost of contracting 
services to help develop new products and processes (ceiling US$5 million). 
Fénix Mining Exploration  
Fund Small and medium-sized mining 
enterprises established in Chile, 
with assets not exceeding 200,000 UF.  Funding of mining prospection and/or exploration 
projects in Chilean territory. 
Early Stages Fund  – Mining SMEs with assets not 
exceeding 50,000 UF. CORFO finances investment funds so that they can 
invest through loans or capital contributions. 
Pre-investment  
programmes for small-scale 
fisheries management areas Natural persons registered as 
small-scale fishermen with 
SERNAPESCA, with net annual sales of 
up to 1 million UF, which possess an 
authorized marine area. Initially subsidizes up to 70% of the total cost of a 
baseline position study (ceiling US$9 million) and 
subsequently up to 50% of the cost of the consultancy 
services required for a follow-up (ceiling US$2 million). 
Seed Capital Competition Legal persons established in Chile for 
less than 2 years. Funding of up to US$2  million, which cannot exceed 
75% of the total amount of the budget presented. 
The resources allocated are non-repayable. 
CORFO Risk Capital for  
Innovative Enterprises Companies with high growth potential 
seeking to develop technological 
innovation in products (goods and 
services) or processes. Funding in the form of long-term credit for investment 
funds, which enables them to invest in companies 
through capital contributions or loans. 
Irrigation Pre-investment  
Programme Companies with net annual sales of up 
to 1 million UF and water user 
associations established under 
the Water Code. Subsidizes up to 70% of the total cost of studies on 
irrigation and/or drainage, and water distribution within 
a holding, with a ceiling of US$3 million (on-farm) 
or US$9 million (off-farm). 
Seed Expansion  
Competition Chilean legal persons interested in 
consolidating their operations in Chile. 
Net sales must not 
exceed US$500 million. Non-repayable subsidy of up to 70% of the total cost 
of the project. 
Supplier Development  
Programme (PDP) Companies with a taxable cash income 
and net annual sales 
exceeding 50,000 UF.  Subsidizes up to 50% of the total cost of the programme 
to improve the supply process, with a ceiling of 
US$59 million for the implementation phase. 
Tax incentive for private  
investment in research and 
development Companies paying income tax.  Tax credit equivalent to 35% of payments made for 
projects and contracts. 
Agricultural Insurance  
Premium Subsidy Farmers, of any scale, and owners or 
tenants, who are taxpayers. The suppo rt consists of 50% of the net premium plus  
1.5 UF per policy, with a maximum of 55 UF per farmer, per growing season. For unirrigated wheat crops, grain maize and tomatoes for consumption and industrial use, 
the State provides 65% of the net premium plus 1 UF 
per policy.  
Source: CORFO. WT/TPR/S/315 • Chile 
 
- 162 - 
 
  Table A4. 1 Selected agricu ltural support programmes 
Programme Description Regulatory framework  
1. IRRIGATION SERVICES 
On-Farm Irrigation and  
Drainage Programme (PRI) Subsidy amounting to 90% of the total cost of investment in 
irrigation or drainage projects for small-scale agricultural 
producers, which incorporate water-management 
technologies. Resolutions No. 80.938 and 
No. 42.707; 
Exempt Resolution No. 1.532 
of 09.01.2014. 
Associative Irrigation  
Programme (PRA) Up to 90% of the total cost of the investment, with an annual 
ceiling of 2,000 UF per project and 200 UF per beneficiary.  Resolution No. 108.545 of 
20.08.2013. 
Water Voucher Scheme Aid of up to 90% of the gross cost of consultancy services to 
resolve problems relating to the use of water. Exempt Resolution No.  8.714 
and Water Code of 1981. 
Irrigation and drainage studies  Financing of up to 99% of the total cost of studies or projects 
that cover irrigation or drainage works. Resolution No. 166.193 of 
16.12.2013 and 
Law No. 20.401 of 04.12.2009.  
Long-term individual or  
corporate loan for irrigation 
and drainage works Interest-free loan linked to the incentive payment granted by 
the State to promote irrigation, established in 
Law No. 18.450. Available for up to 2 years, including a 
one-year grace period. Law No. 20.401 of 04.12.2009  
and INDAP General 
Credit Regulations. 
2. TERRITORIAL DEVELOPMENT 
Local Development Programme  
(PRODESAL)  Finances advisory services, investment and working  capital for 
INDAP farmers, for up to 90% of the gross value of the 
investment. The programme is implemented through 
municipalities.  Resolutions No. 167.309 of 
19.12.2013 and 
No. 2.2831 of 28.02.2014. 
Agricultural Programme for the  
Comprehensive Development 
of Small-Scale Peasant 
Farmers in Non-Irrigated Areas 
in the Region of Coquimbo 
(PADIS) Finances technical advisory services, investment and working 
capital to improve agricultural and forestry productivity in 
family farming, through municipalities in the region of 
Coquimbo, which implement PADIS with resources transferred 
to them by INDAP. Exempt Resolution No.  7.299 
of 31.01.2014. 
Training and Education for  
Women in Rural Areas (INDAP 
- PRODEMU Agreement) Various types of support granted according to  objective. 
Up to 90% of the cost of the project is subsidized by INDAP. Resolutions No. 2.469 of 
16.01.2014 and 
No. 54.941 of 24.05.2011. 
3. INVESTMENT 
Investment Development  
Programme (PDI) Co-finances investment projects to modernize agricultural, 
agro-industrial and livestock production processes. Resolutions No. 75.718 of 
29.05.2014 and 
No. 1.071 of 07.01.2014. 
4. SOIL RECLAMATION 
System of Incentives for the  
Agri-Environmental 
Sustainability of Agricultural 
Land (SIRSD-S) Non-repayable co-financing of 50% to 90% of the net costs 
of agricultural soil reclamation activities for small-scale 
farmers cultivating a maximum of 12 basic irrigation 
hectares whose assets do not exceed 3,500 UF. Law No. 20.412 of 09.02.2010;  
Supreme Decrees 
No. 51/2012, No. 04/2013 
and No. 83/2010. 
Short-term loan linked to the  
SIRSD-S Short-term non-indexed loan linked to the co-financing of 
projects under the SIRSD-S. INDAP General 
Credit Regulations. 
Additional Pastures and Fodder  
Resources (PPSRF) Subsidy of 80% of the net costs related to inputs and other 
work required to establish additional pastures and/or fodder 
resources. Exempt Resolution 
No. 16.754/2012. 
Individual shor t-term loan  
linked to the PPSRF Short-term loan, non-indexed and interest-free.  INDAP General 
Credit Regulations. 
Incentive payments for forestry  
development Financing for reforestation and soil reclamation with 
emphasis on smallholders.  Decree Law No. 701 of 1974.  
Native Woodland Managemen t Financing of the costs of lumber, non-lumber and 
conservation activities. Law No. 20.283 of 
30.07.2008. 
5. TECHNICAL ADVICE 
Technical Advisory Service  
(SAT) Technical advice on improving production systems.  Resolution No. 5.924 of  
29.01.2014. 
Land Tenure Consolidation  
Programme Subsidy covering the legal costs paid by small-scale 
agricultural producers to resolve legal problems concerning 
their land. Resolution No. 43.795 of  
03.04.2012. 
6. DEVELOPMENT OF PRODUCTION AND BUSINESS CAPACITY  
Organizational Management and  
Support Programme (PROGYSO) Finances the development of organizational management and 
administrative support for farming associations. Resolution No. 2.371 of 
16.01.2013. 
7. FINANCIAL ASSISTANCE PROGRAMMES 
Delegated Cash Management  
Fund (FAD)  The Chilean State grants resources to financial institutions to 
facilitate access to credit for small-scale agricultural 
producers and their associations. Resolution No. 149/2008; 
Supreme Decrees 
No. 24/2005 and 
No. 42/2004; and 
Exempt Resolution 
No. 1.457/2008. WT/TPR/S/315 • Chile 
 
- 163 - 
 
  Programme Description Regulatory framework  
Supplementary long-term  
investment loan Long-term indexed loan for up to 10 years.  
INDAP General 
Credit Regulations 
(Resolution No. 286 
of 20.12.2003). Short-term investment loan Loan for up to 359 days to partially finance the working 
capital required for forestry and agricultural activities. 
Individual shor t-term  
pre-approved loan Loan for up to 359 days.  
Individual long-term loan Loan for a period of between 360 days and 10 years to 
finance forestry and agricultural activities. 
Long-term loan for native  
woodland management Indexed interest-free loan for a maximum of 
between 2 and 4 years, according to type of activity. 
Short-term individual or  
corporate loan  Loan for up to 359 days, for forestry and agricultural 
activities. 
Source: Viewed at: www.indap.cl  (INDAP), www.conaf.cl  (CONAF) and www.fia.cl  (FIA). WT/TPR/S/315 • Chile 
 
- 164 - 
 
  Table A4. 2 Fishery support programmes, 2009-2014 
Programme/Description Disbursement  Regulatory framework  
Volvamos a la mar  
Subsidy for the replacement or repair of small-scale fishing 
vessels in regions affected by the earthquake and tsunami 
of 27 February 2010. 25% of the cost was financed, with a 
ceiling of 2.1 million pesos per beneficiary. Implemented in 2010 only. 
Total amount disbursed: 
4,623 million pesos Supreme Decree No.  150 
of 27 February 2010 
Support for divers 
Subsidy for the replacement or repair of semi-autonomous 
diving equipment with a view to reactivating the production 
activities of small-scale fishermen affected by the earthquake 
and subsequent tsunami. Implemented in 2010 only. 
Total amount disbursed: 
232 million pesos Supreme Decree No.  150 
of 27 February 2010 
Support for crews 
Subsidy for the replacement of fishing gear with a view to 
reactivating the production activities of small-scale fishermen 
affected by the earthquake and subsequent tsunami. Total amount disbursed: 
202 million pesos Supreme Decree No.  150 
of 27 February 2010 
Support for shore fishermen  
The purchasing of diving suits and equipment for 
seaweed extraction. 700 million pesos  Supreme Decree  No. 150 
of 27 February 2010 
Agreement with the National  Bureau for Women (SERNAM)  
Programme to promote women's rights in the small-scale 
fisheries sector. Support is granted through a competition. 65.1 million pesos  Exempt Resolution  
No. 1.198 of 2012 
Research 
Payments for fishery and aquaculture research. The Institute for 
the Promotion of Fishing (IFOP) is responsible for basic research, 
while the Fishery and Aquaculture Research Fund (FIP) is 
responsible for non-basic and occasional research.  Annual disbursements 
(million pesos):2010: 7,502.2; 
2011: 8,212.5; 2012: 9,090.7; 
2013: 13,015.8.  Articles 91 to 97 of the 
General Law on Fisheries 
and Aquaculture  
Fisheries Administration Fund (FAP) 
Finances fishery and aquaculture research projects through 5 work 
streams: (a) small-scale fisheries promotion and development; (b) 
training, re-training, and social support for displaced workers; (c) 
research into, and promotion, development, administration, 
surveillance and monitoring of, recreational fishing activities; (d) 
monitoring and administration of fishery activities; and (e) 
promotion of marine product consumption.  Annual disbursements 
(million pesos): 2010: 4,518.6; 
2011: 4,318.4; 2012: 5,583.9; 
2013: 5,992.7; 2014: 8,926.5 Article 173 of 
Law No 18.892, 
General Law on Fisheries 
and Aquaculture 
Regional fishery programmes 
13 regional programmes have been implemented. The 
development of these programmes was co-financed by Regional 
Governments (GORE), the Fund for the Promotion of Small-Scale 
Fisheries (FFPA) and FAP. Resources of more than 5,000 million 
pesos were earmarked for these programmes, which benefit 
more than 400 fishermen. The programmes operate through a 
call for applications.  Amounts disbursed (million 
pesos): FFPA: 2009-2014: 6.51 
National Rural Development 
Fund (FNDR): 2009-2014: 8.65. Article 173 of 
Law No. 18.892, 
General Law on Fisheries 
and Aquaculture; 
Public Sector Budget Law  
Territorial programmes/projects 
Programmes/projects that seek to increase the added value of 
marine resources through the installation of processing facilities 
in fishing coves.  500 million pesos  Regional committee 
requirements 
FAP research 
Payments to research new species or to determine their spatial 
orientation at a given moment. 629 million pesos  Supreme Decree 
No. 150 of 2010 
National project competition 
Non-repayable financing for projects aimed at promoting and 
developing small-scale fisheries in the Valparaíso region. More than 2,042  million pesos 
disbursed in 2011 and 2012. Application requirements  
Consumption promotion 
Funding for projects that promote the consumption of 
marine products. Annual disbursements 
(million pesos) 2011: 68.9; 
2012: 2.2; 2013: 0.2; 2014: 74.2 Not available 
Business creation programme 
Funding for the formalization of beneficiary organizations and 
the marketing of their fishery resources.  186 million pesos  Exempt Resolution 
No. 3312/2012 
Gender-focused entrepreneurship 
Competition-based funding for projects that seek to strengthen 
the role of fisherwomen and diversification in fishing-related 
areas in the Los Lagos region. Project implemented since 2011. Amounts disbursed 
(million pesos): 2011: 30; 
2012: 70; 2013: 120; 2014: 41 Regional Agreement 
GORE Los Lagos-
FAP-FFPA 2011-2014 
Programme on non-conventional renewable energy (NCR E) in support of small-scale fishery productivity 
Funding to provide clean energy for production facilities and 
processes in coves used by small-scale fishermen. 58.04  million pesos  Exempt Resolution 
No. 3.452-2013 
Industry workers 
Support (non-repayable) and grants for workers and former 
workers in the fishing industry, provided through 4 programmes: 
workforce reintegration, training activities, high-level technical 
study programmes and social support programmes. 2,902  million pesos in  
2010-2014. The programmes 
benefited 1,259 former crewmen 
and 2,189 processing plant and 
fleet workers. Decree No. 131 of 
4 August 2013; 
Law No. 20.657 of 
9 February 2013. 
Source: Information provided by the authorities. 
__________