WT/REG312/M/1  
 
17 July 2013  
(13-3840) Page: 1/3  
Committee on Regional Trade Agreements 
Sixty-ninth Session    
 
CONSIDERATION OF THE FREE TRADE AGREEMENT BETWEEN  
CHILE AND GUATEMALA, GOODS AND SERVICES 
NOTE ON THE MEETING OF 3 JULY 2013 
Chairman: Ambassador Francisco Lima Mena (El Salvador) 
1.1.  The 69th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/4130/Rev.1 dated 21 June 2013. 
1.2.  Under Agenda Item B.III of this session, the CRTA considered the Free Trade Agreement 
(FTA) between Chile and Guatemala (hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement had entered into force on 23 March 2010. It had been 
notified to the WTO by the Parties on 30 March 2012 under Article XXIV:7(a) of the GATT 1994 
and the Understanding on the Interpretation of Article XXIV of GATT 1994 as an Agreement 
establishing a free trade area (document WT/REG312/N/1) and under GATS Article V:7(a) as an 
Agreement providing for the liberalization of trade in  services within the meaning of Article V of the 
GATS (document S/C/N/622). The text of the Agreement was available, together with its Annexes, 
on the Parties' official websites. The Factual Presentation on the goods and services aspects 
(document WT/REG312/1 dated 20 March 2013) had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Ag reements (document WT/L/671) ("TM"). Written 
questions and replies on this Agreement had been distributed in document WT/REG312/2 dated 
28 June 2013. He proposed to organize the consideration of the Agreement by first asking the Parties and then other Members to give any general comments and then turn to the specifics of 
the Agreement, using the Factual Presentation, document WT/REG312/1, to guide the discussion. 
They would then go through the Questions and Replies document. 
1.4.  The representative of Chile thanked the Se cretariat for preparing the factual presentation, 
which would provide the Committee an overview of the progress that had been made, and the 
European Union, Colombia and Australia for their interest in the Agreement and for their advance questions. She was also grateful to colleagues from the Mission of Guatemala for their close and 
fruitful cooperation throughout this process. 
1.5.  Economic and trade relations between Chile and Guatemala were governed by their 
Free Trade Agreement (FTA) and Bilateral Protocol which had entered into force on 23 March 2010. The aim of the Agreement was to create a free trade area that would contribute to the further 
expansion and reinforcement of trade, while at the same time promoting and protecting 
investment and cross-border services, including air transport. The Agreement also required the Parties to adopt measures to prohibit monopolistic practices and set up an efficient and rapid 
general dispute settlement system. 
1.6.  The administration of the Agreement was conducted in periodic meetings by a Free Trade 
Commission made up of the five Central American countries which had protocols in force. At the 2011 Commission meeting between Chile and Guatem ala, it had been noted that among the 
Central American countries, Guatemala had recorded the greatest increase in exports to Chile over 
the past few years. WT/REG312/M/1 
 
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  1.7.  The Bilateral Protocol between Chile and Guatemala within the framework of the FTA with 
Central America established the following tariff elimination programme: 
(a) For Chile's exports the programme covered 6,569 tariff lines of which 52.1% (3,425) 
entered the Guatemalan market duty free.  When the respective tariff reduction 
time-limits had expired, 92.6% of the negotiated products would enter duty free. 
(b) For Guatemala's exports 7,705 products were covered by the programme, and 67.4% 
had been liberalized. At the end of 15 years of implementation, 92.9% of the 
negotiated products would be able to enter Chile duty free. 
1.8.  In the course of 2012, trade between  Chile and Guatemala had totalled US$211 million, 
which represented 0.13% of Chile's foreign trade. 
1.9.  She emphasised that the Protocol had entered into force relatively recently, and the Parties 
were still in the early stages of tariff liberalization, although more than half of the products already 
enjoyed zero tariffs, and a considerable number of products would be added in five and ten years. Exports of wine from Chile to Guatemala ha d benefited from the preferential tariff. 
1.10.  It was Chile's policy in international trade negotiations to try to cover a wide range of goods 
and services. In services, Chile had assumed commitments in 42 of the 155 sectors, and 
Guatemala in 18 of the 155 sectors. This suggested  that there were still challenges ahead. The 
other challenges facing the Bilateral Protocol were: (a) deepening the liberalization programme; 
(b) publicizing the agreement; and (c) progre ssing on sanitary and phytosanitary issues. 
1.11.  She concluded by saying that Chile saw Central America as a dynamic and competitive 
region, with open markets and an excellent level of investment – hence Chile's desire to continue 
expanding the Agreement with Guatemala. 
1.12.  The representative of Guatemala thanked th e Secretariat for the Factual Presentation on the 
Agreement between Guatemala and Chile. It was a comprehensive report that would be useful in 
analysing the provisions of the Agreement. He also thanked the delegation of Chile for the 
preparatory work leading up to the consideration, as well as delegations for their questions. 
1.13.  In October 1999, Chile and each of the five Central American States had signed 
a Free Trade Agreement, laying the foundations fo r a free trade area among the six parties. On 
7 September 2007, the bilateral protocol between Chile and Guatemala had been signed, forming 
an integral part of the Agreement. Among other things, it contained the schedules of concessions agreed bilaterally for trade in goods and services. On 23 March 2010, the Agreement between 
Chile and Guatemala had entered into force. 
1.14.  The Agreement aimed to encourage the expansion and diversification of trade in goods and 
services between the Parties; further develop the free trade area; promote conditions of fair 
competition within the free trade area; and elimin ate barriers to trade, thereby facilitating the 
movement of goods and services between their countries. 
1.15.  Relations between Chile and Guatemala ha d spanned more than 120 years, with certain 
agreements concluded between them as far back as 1879. Guatemala considered Chile to be an 
important trading partner, and was certain that the Agreement would help to strengthen trade relations between them. 
1.16.  The two Parties shared the objective of tr ade liberalization, and they were seeking export 
opportunities in numerous markets. Like Chile, Gu atemala was engaged in a process of negotiating 
and implementing a number of trade agreements. Thus, Guatemala was participating as an observer in the ambitious Pacific Alliance project,  of which Chile was one of the founding members, 
and was working hard to join as a full member as soon as possible. 
1.17.  The Chairman thanked the delegations for sticking to the speaking time for their general 
statements. He opened the floor for any general comments. WT/REG312/M/1 
 
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  1.18.  The representative of the European Union thanked the Parties for the comprehensive 
presentation of the Agreement and stated thei r appreciation of the fully reciprocal tariff 
liberalization between the Parties for goods foreseen by the end of the implementation, and also the significant improvement in the level of co mmitments compared to their GATS commitments. 
The EU had submitted questions on 16 April; they were analysing the replies and might come back 
to the Parties with subsequent questions. 
1.19.  The representative of the United States thanked the Parties and the Secretariat for the 
materials provided and the comprehensive presentati ons. In terms of general remarks, the US had 
no additional questions on the report nor on the Questions and Replies document, but noted the 
low level of tariff elimination by both Parties in the agricultural sector. The United States also looked forward to the notification of non-notified RTAs listed in Table 5.1. 
1.20.  The Chairman then proposed to go through the specifics of the Agreement in line with the 
factual presentation. 
1.21.  On the Questions and Replies document WT/REG312/2, the representative of Australia 
thanked the Parties for their responses to Australia's questions. The replies were still under review 
and any follow up questions would be submitted by the appropriate deadline.  
1.22.  The representative of Colombia thanked the Parties for their responses to the questions 
submitted by Colombia which had been sent to thei r Capital. If Colombia had further remarks, they 
would be submitted in due time. 
1.23.  The Chairman said that the consideration of the Goods and Services Aspects of the Free 
Trade Agreement between Chile and Guatemala had allowed the Committee to clarify a number of 
questions and the oral discussion of this RTA could be concluded in accordance with paragraph 11 
of the Transparency Mechanism (TM). If any delegations wished to ask follow up questions they were invited to forward submissions in writing to  the Secretariat by 10 July 2013 and Parties were 
asked to submit replies in writing by no later than 24 July 2013. In accordance with paragraph 13 
of the Transparency Mechanism all written submissi ons, as well as minutes of this meeting would 
be circulated promptly, in all WTO official languages, and would be made available on the 
WTO website.  
1.24.  The Committee took note of the comments made. 
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