WT/REG312/1  
20 March 2013  
(13-1524)  Page: 1/43  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
 
FREE TRADE AGREEMENT BETWEEN  CHILE AND GUATEMALA  
(GOODS AND SERVICES) 
REPORT BY THE SECRETARIAT 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Chile and Guatemala has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a 
Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264). 
 
 
 
         WT/REG312/1 
 
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  TABLE OF CONTENTS 
 
Page 
 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Overview .................................................................................................................. 4  
1.2   Merchand ise trade ..................................................................................................... 4  
1.3   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 8  
2.1   Background  Information ............................................................................................. 8  
2.2   Structure of the Agreement ......................................................................................... 8  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 9  
3.1   Import duties and charges, and quantitative restrictions ................................................. 9  
3.1.1   General provisions .................................................................................................. 9  
3.1.2   Liberalization of  trade and ta riff lines ......................................................................... 9  
3.1.3   Liberaliza tion schedules .......................................................................................... 10 
3.1.3.1   Guatem ala ......................................................................................................... 11 
3.1.3.2   Chile ............................................................................................................... .. 13 
3.1.4   Tariff rate quotas ................................................................................................... 14 
3.1.5   Import restrictions ................................................................................................. 14 
3.2   Rules of origin .......................................................................................................... 14 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 16 
3.4   Regulatory provisions on trade in goods ....................................................................... 16 
3.4.1   Standards ............................................................................................................. 16 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 16 
3.4.1.2   Technical barriers to trade .................................................................................... 17 
3.4.2   Safeguard mechanisms ........................................................................................... 18 
3.4.2.1   Bilateral safeguards ............................................................................................. 18 
3.4.2.2   Global safeguards ............................................................................................... 18 
3.4.2.3   Safeguard measures related to  balance of payment (BOP) difficulties ......................... 19 
3.4.3   Anti-dumping and countervailing measures ............................................................... 19 
3.4.4   Subsidie s and State-aid .......................................................................................... 19 
3.4.5   Customs-re lated procedures .................................................................................... 19 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 20  
4.1   Scope and definition ................................................................................................. 20 
4.2   Denial of benefits ..................................................................................................... 20 
4.3   General provisions on trade in services ........................................................................ 20 
4.3.1   Mark et acce ss ....................................................................................................... 20 
4.3.2   National an d MFN trea tments .................................................................................. 21 
4.3.3   Local Presence ...................................................................................................... 21 
4.3.4   Temporary moveme nt of busine ss persons ................................................................ 21 WT/REG312/1 
 
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  4.3.5   Performanc e requirements ...................................................................................... 22 
4.3.6   Senior managers and board of direct ors .................................................................... 22 
4.3.7   Provisions  on investment ........................................................................................ 22 
4.4   Liberalization commitments ........................................................................................ 23 
4.4.1   Chile's liberalization commitments ............................................................................ 23 
4.4.2   Guatemala liberalization commitments ...................................................................... 24 
4.4.3   Sector specific commitm ents on trade in services ....................................................... 24 
4.4.3.1   Busi ness serv ices ................................................................................................ 27 
4.4.3.2   Communication services ....................................................................................... 28 
4.4.3.3   Construction and re lated engineerin g services ......................................................... 28 
4.4.3.4   Distribu tion serv ices ............................................................................................ 28 
4.4.3.5   Educat ional serv ices ............................................................................................ 28 
4.4.3.6   Environm ental services ........................................................................................ 28 
4.4.3.7   Financial services ................................................................................................ 28 
4.4.3.8   Health relate d and social servic es .......................................................................... 28 
4.4.3.9   Tourism and tr avel related services ....................................................................... 28 
4.4.3.10   Recreational, cultur al and sporting  services ........................................................... 28 
4.4.3.11   Transp ort serv ices ............................................................................................. 29 
4.5   Sector specific provisions in trade in services ................................................................ 29 
4.5.1   Air Transport ......................................................................................................... 29 
4.5.2   Telecommuni cation services .................................................................................... 29 
4.6   Regulatory provisions ................................................................................................ 30 
4.6.1   Domestic regulation ............................................................................................... 30 
4.6.2   Recognition ........................................................................................................... 30 
4.6.3   Subsidies .............................................................................................................. 30 
4.6.4   Tran sparen cy ........................................................................................................ 30 
4.6.5   Safeguards ........................................................................................................... 30 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 30  
5.1   Tran sparency ........................................................................................................... 30 
5.2   Exceptions ............................................................................................................... 31 
5.3   Accession and Withdrawal .......................................................................................... 31 
5.4   Government  procurement .......................................................................................... 31 
5.5   Intellectual property rights ......................................................................................... 32 
5.6   Ot hers .................................................................................................................. .. 32 
5.6.1   Competition .......................................................................................................... 32 
5.7   Institutio nal framework ............................................................................................. 33 
5.8   Disput e settlement ................................................................................................... 34 
5.9   Relationship with other agr eements concluded by the Parties .......................................... 35 
ANNEX 1 ....................................................................................................................... . 39 
ANNEX 2 ....................................................................................................................... . 43 WT/REG312/1 
 
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Key Facts 
 
 Parties to the Agreement:   Guatemala and Chile 
 
 Date of Signature:    19 October 1999 
 
 Date of Entry into Force:   23 March 2010 
 
 Date of Notification:    30 March 2012 
 
 Full implementation:    1 January 2029 
 
 
 
1  TRADE ENVIRONMENT 
1.1  Overview1 
1.1.  The Free Trade Agreement (hereinafter re ferred to as the Agreement) between Guatemala 
and Chile is Guatemala's 7th and Chile's 24th RTA.2  
1.2.  In 2011, with a population of over 14.7 million, Guatemala's GDP was estimated at 
US$46 billion while that of Chile, with a popula tion of 17 million was estimated at US$249 billion. 
While Chile mainly exports mining products an d fuels (61.8% of Chile's global exports), 
Guatemala's main exports are agricultural prod ucts and manufactured goods (respectively 44.7% 
and 38.3% of Guatemala's global exports). Both Parties import mainly manufactured goods (64% of Guatemala's and 65.5% of Chile's global imports). Averaged over the period 2009-2011, 
Guatemala's and Chile's Trade (goods and services) to GDP ratio are relatively similar (respectively 
62.3 for Guatemala and 68.8 for Chile). 
1.2  Merchandise trade 
1.3.  In 2011, Guatemala's share in total world exports and imports was 0.06% and 0.09% 
respectively, while Chile's shares were 0.45% for exports and 0.41% for imports. With total merchandise exports of US$10.4 billion and imports of US$16.6 billion (both increasing slightly in 
recent years), Guatemala ranked 67
th in the world as exporter and 57th as importer compared to 
Chile's rankings at 33rd for exports and 27th for imports (with global exports and imports of 
US$81 billion and US$75 billion). 
1.4.  In 2011, Guatemala was Chile's 24th largest source of imports and 35th destination for export, 
accounting for respectively 0.2% of its total imports and 0.1% of its total exports.3 For Guatemala, 
Chile represented 0.8% of its total imports, making Chile Guatemala's 17th largest source of 
imports - while it was also Guatemala's 11th largest destination for exports, accounting for 1.3% of 
Guatemala's total exports.4 
1.5.  Developments in global and intra-Party trad e are presented in Charts 1.1 and 1.2. Bilateral 
trade between Guatemala and Chile broadly followed the pattern of both Parties' trade with the 
world, with an overall increase during the peri od, except for Guatemala's global trade between 
                                               
1 Source for this section: WTO Trade Profiles 2012 (2011 data).  Export figures are calculated f.o.b. and 
import figures are calculated  c.i.f.  Ranking in world trade exclude intra-EU trade.  For bilateral trade, the 
figures as based on UNSD Comtrade for Chile, and the national Directorat e of Trade Statistics for Guatemala. 
2 Agreements in goods and services counted as one an d only agreements in force, notified to the WTO, 
counted. Agreements concluded by Chile with ea ch Central American State counted separately. 
3 In 2011 the five top sources of imports for Chil e were: the US (20.2%), China (16.9%), the EU27 
(13.8%), Brazil (8.3%), and Argentin a (6.3%); the five top export destinations from Chile were: China 
(22.8%); the EU27 (17.7%); the US (11. 2%); Japan (11.1%); and Brazil (5.5%). 
4 In 2011, the five top sources of imports for Guatemala were: the U.S. (39.2%), Mexico (11.2%), 
China (6.9%), the EU27 (6.6%), and El Salvador (4.9%); the five top destinations of exports from Guatemala 
were:  the US (41.6%), El Salvador (11.1%), Honduras (8%), the EU27 (6.6%), and Mexico (5%). WT/REG312/1 
 
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  2005 and 2006, and a sharp decline both Parties globally and bilaterally in connection with the 
financial crisis. Since 2009 trade has recovered, althou gh at a slower pace bilaterally than globally. 
Guatemala's global trade deficit has widened duri ng the period. While Chile globally maintains a 
trade surplus, it ran a trade surplus with Gu atemala until 2010 since when its imports from 
Guatemala have surpassed its exports. 
Chart 1.1 - Chile: Merchandise trade with world and Guatemala, 2000-2011 
0.00.20.40.60.81.0
0102030405060708090
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ billionImports from  Guatemala
Exports to GuatemalaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: WTO Secretariat, based on  the UNSD, Comtrade database. 
 
Chart 1.2 - Guatemala: Merchandise trade with world and Chile, 2000-2011 
0.00.20.40.60.81.0
05101520
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ billionImports from  Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: UN Comtrade database. 
 
1.6.  The commodity structure of trade among the Pa rties, as well as with the world in the period 
2007-2009, is shown in Chart 1.3 on the basis of  Harmonized System (HS) sections. Prepared 
foods accounted for 86.2% of Chile's imports from Guatemala, while this sector only represented 
2.9% of Chile's global imports, and 15.3% of  Guatemala's global exports. Minerals were 
Guatemala's largest import sector from Chile, representing 59.3% of Guatemala's total imports from Chile and 19.4% of Guatemala's total imports. Minerals were also Chile's second largest export sector globally (24.9% of Chile's global exports).  WT/REG312/1 
 
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  Chart 1.3 Chile and Guatemala: product co mposition of merchandise trade, annual 
average (2007-2009) 
37.7
24.96.96.05.54.73.83.07.6
59.3
9.57.65.44.64.13.33.03.222.8
19.5
15.39.99.35.14.42.62.52.16.4
28.4
21.9
11.88.15.44.94.42.92.29.9
19.4
15.8
12.7
9.17.16.76.65.44.44.28.586.210.41.12.3Chile's imports from Guatemala
Guatemala's imports from ChilePer cent
Total:  US$ 88 million
Total:  US$ 227 millionTotal:  US $51 billion
Total: US $ 13 billionTotal:  US$ 7.3 billion
Total:  US$ 63 billionGuatemala's global exports
Chile's global exportsChile's global imports
Guatemala's global imports
Animal products
VegetablesMinerals
ChemicalsPlastics, rubber
TextilesBase metals
MachineryVehicles
OtherWood pulp Fats and oils
Prepared foods Articles of wood
Source: WTO Secretariat, based on  the UNSD, Comtrade database. 
 
 1.3  Trade in services and investment 
1.7.  In 2011, Guatemala's share of total commerc ial services exports and imports was 0.05% and 
0.06% respectively. Chile's shares represented respectively 0.29% and 0.35% of world exports and imports. With total commercial services exports of US$2.2 billion, and imports of 
US$2.5 billion, Guatemala was the world 68
th largest exporter and importer compared to Chile's 
ranking as 31st largest exporter and 33rd largest importer (with commercial services exports of 
US$12.2 billion and imports of US$13.6 billion).  
1.8.  Tables 1.1 and 1.2 below show the breakdown of trade in commercial services and 
investment for Guatemala and Chile, for the period between 2005 and 2010. Trade in commercial services data shows, for Chile and Guatemala, a steady increase with the exception of 2009 in 
connection with the global financial and economic crises. While transportation services constitute 
more than half of Chile's imports and exports of commercial services, for Guatemala, personal, 
cultural and recreation services represented, in 2010, both the largest sector for both imports and 
exports globally. Chile's global imports and exports in commercial services is fivefold the value of 
Guatemala's imports and exports. No data are available on bilateral trade in services. On 
investment, FDI stocks and flows have regularly increased for both Parties during this period, with the exception of Guatemala's total FDI outward flows which were higher (though relatively 
modest) during the first years of the period. Global outward and inward stocks in 2010 were 
respectively US$49 billion and US$139 billion for Chile, and US$382 million and US$6 billion for Guatemala. Data on bilateral FDI are not available. 
 WT/REG312/1 
 
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  Table 1.1 Trade in commercial services  and investment with world, 2005-2010 
A. Chile 
Unit: in million US$ 
Service Item World  
Exports  Imports 
2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009  2010  
Total commercial 
services 7,040 7,726 8,851 10,351  8,144  10,397  7,572  8,250  9,733 10,891  9,527  11,618  
Transportation 
services 4,301 4,695 5,213 6,456  4,720  6,394  4,135  4,571  5,274 6,646  4,778  6,571  
Travel 1,109 1,213 1,477 1,657  1,604  1,620  1,051  1,239  1,660 983  1,167  1,281  
Communication 
services 148 143 151 220  153  146  158 137 164 203  161  173  
Construction 0 0 0 0  0 0 0 0 0 0 0  0 
Insurance 
services   163 189 224 233  228  286  463 431 506 646  869  1,127  
Financial 
services 34 37 40 0  0 0 256 319 368 0 0  0 
Computer and 
information 
services 74 78 82 127 143 116 71 73 58 273 312 258 
Royalties and 
licence fees 54 55 61 64  59 64 348 384 448 539 597  701 
Other business 
services 1,087 1,236 1,518 1,577  1,222  1,751  1,037  1,040  1,215 1,580  1,628  1,485  
Personal, 
cultural and 
recreation 
services 69 78 84 17  15 21 53 55 42 21  15  21  
 World  
 Outward  Inward 
 2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009  2010  
Total FDI stocks 21,359 26,025 31,688 31,820  41,339  49,838  74,196  80,297  99,413 99,359 121,395  139,538  
Total FDI flows 2,183 2,171 2,573 8,041  8,061  8,744  6,984  7,298  12,534 15,150 12,874  15,095  
 
Source: National authorities, WTO Statistics database and OECD (for FDI). 
Table 1.2 Trade in commercial services  and investment with world, 2005-2010 
B. Guatemala  
Unit: in million US$ 
Service Item World  
Exports  Imports 
2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009  2010  
Total commercial 
services 1,221 1,410 1,619 1,732  1,818  2,192  1,429  1,756  2,017 2,116 2,059  2,362  
Transportation 
services 155 171 188 255 256 289 793 921 1,073 1,147 956 1,150  
Travel 791 919 1,055 1,068  1,179  1,379  421 529 597 606 715  784 
Communication 
services 0 5 265 273 260 10 0 1 32 32 39 1 
Construction and 
installation 14 18 0 0  2 42 125 182 0 0 1  192 
Insurance 
services   5 9 21 22 19 12 6 10 202 204 198 14 
Financial services 5 8 15 6  10 13 49 60 8 11 3  94 
Computer and 
information 
services 182 219 11 11 11 326 13 32 9 8 9 47 
Royalties and 
licence fees 71 62 11 12  13 107 22 17 72 62 86  72 
Other business 
services 0 0 55 85 68 14 0 5 19 41 49 8 
Personal, cultural 
and recreation 
services 1,221 1,410 0 0  0 2,192  1,429  1,756  4 4 3  2,362  
 World  
 Outward  Inward 
 2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009  2010  
Total FDI stocks 250 293 316 332  358 382 3,319  3,898  4,618 5,439 5,636  6,518  
Total FDI flows 38 40 25 16 26 24 508 592 745 754 600 806 
 
Source: National authorities, IMF (Guatemala trad e in services for 2005-2006 and 2010) and UNCTAD (for 
FDI). WT/REG312/1 
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Treaty on Free Trade between Chile and Central America5 (hereinafter referred to as the 
Chile/Central America Treaty) was signed on 19 October 1999 between Chile and each of the five Central American States
6. It establishes the basis for the cr eation and the implementation of a 
Free Trade Area between the six Parties. A bilate ral protocol between Chile and Guatemala, which 
forms an integral part of the Agreement and contains, inter alia , the lists of concessions granted 
bilaterally in trade in goods and services, was signed on 7 December 2007. As the Chile/Central 
America Treaty applies bilaterally between Ch ile and each of the Central American States7, the 
Factual Presentation only presents the features of  the Chile/Central America Treaty which apply to 
bilateral relations between Chile and Guatemala and which constitute the Free Trade Agreement 
between Chile and Guatemala (hereinafter calle d the Agreement). The Agreement entered into 
force on 23 March 2010.  
2.2.  The Parties notified the goods and serv ices aspects of the Agreement to the WTO on 
30 March 2012, in document WT/REG312/N/1–S/C/N/622. The notification was made pursuant to 
Article XXIV:7(a) of the GATT 1994 for goods, and to Article V:7(a) of GATS for services. The text 
of the Agreement, together with its Annexes, is available on the Parties' official websites: 
 Guatemala :  http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales  
 
 Chile :   http://www.direcon.cl/ 
 
2.2  Structure of the Agreement 
2.3.  The Chile/Central America Treaty, covering  trade relations between Chile and the Central 
American States, and thus with Guatemala, is composed of twenty-one Chapters, organized in seven Parts. It is complemented by a Bilateral Protocol between Chile and Guatemala, as well as 
Annexes and Appendices, related to specific Chapters of the Agreement and which include the 
Parties' Schedules for liberalization in goods and in services.  
2.4.  Box 2.1 below summarizes the legal framework established by the Agreement. 
Box 2.1 S
tructure of the Agreement  
Chapters, Annexes, 
and Appendixes Title/description 
PART I: GENERAL PROVISIONS 
Chapter 1 Initial provisions 
Chapter 2 General Definitions 
PART II: TRADE IN GOODS 
Chapter 3 National Treatment and Market Access 
Chapter 4 Rules of Origin 
Chapter 5 Customs Procedures  
Chapter 6 Safeguard Measures 
Chapter 7 Unfair Trade Practices 
PART III: TECHNICAL BARRIERS TO TRADE 
Chapter 8 Sanitary and Phytosanitary Measures 
Chapter 9 Standardization and Metrological Meas ures, and Authorization Procedures  
                                               
5 Original name in Spanish: "Tratado de Libre Comercio entre Chile y Centroamérica". 
6 Costa Rica, El Salvador, Guatem ala, Honduras, and Nicaragua. 
7 Article 1.01. WT/REG312/1 
 
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  Chapters, Annexes, 
and Appendixes Title/description 
PART IV: INVESTMENT, SERV ICES AND RELATED MATTERS 
Chapter 10 Investment 
Chapter 11 Cross-Border Trade in Services 
Chapter 12 Air Transport 
Chapter 13 Telecommunications 
Chapter 14 Temporary Entry of Business Personal 
PART V: COMPETITION POLICIES 
Chapter 15 Competition Policies 
PART VI: GOVERNMENT PROCUREMENT 
Chapter 16 Government Procurement 
PART VII: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS 
Chapter 17 Transparency 
Chapter 18 Administration of the Agreement 
Chapter 19 Dispute Settlement 
Chapter 20 Exceptions 
Chapter 21 Final Provisions 
  
Annex I Parties' Lists of non-conforming  measures (existing measures) 
Annex II Parties' Lists of non-conformi ng measures (future measures) 
Annex III Parties' Lists of non-discriminatory quantitative restrictions maintained 
(Services) 
 
Source: WTO Secretariat based on the Agreement. 
 
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 
3.1.  Preferential trade in goods between the Pa rties is governed by Chapters 3 to 9 of the 
Agreement.8 Chapters 15 to 21 are applicable to both trade in goods and trade in services, as 
appropriate.  
3.2.  The Parties agree to apply national treatment to each other's goods in accordance with 
Article III of the GATT 1994 and other relevant WTO Agreements (Article 3.03). Annex 3.10(6) 
foresees however that Chile may adopt or maintain measures related to the import of used vehicles.
9 
3.1.2  Liberalization of trade and tariff lines 
3.3.  The tariff elimination programme agreed by the Parties is contained in Annex 3.04(2) to the 
Agreement, attached to the Bilateral Protocol. The Bilateral Protocol establishes the modalities 
applicable to the liberalization programme for Chile (Section A) and for Guatemala (Section B). 
During the tariff elimination process, the Parties commit to apply in their bilateral trade either the MFN duty or the duty resulting from the tariff elimination programme, whichever is the lowest.  
                                               
8 Chapter 9 also covers some elemen ts relevant for trade in services 
9 As an exception to the national treatment principle and if in conformity with Chile's Law 18.483. WT/REG312/1 
 
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  3.4.  Articles 3.05 through 3.07 of the Agreement contain special disciplines applicable to 
temporary admission of goods10, duty-free import of commercial samples of negligible value as 
well as the import of printed advertising material s, and treatment applicable to goods re-imported 
after having been repaired or altered. 
3.5.  Upon request by either Party, the Part ies shall consult to consider accelerating the 
implementation of the tariff elimination programme (Article 3.04, paragraph 4).  
3.1.3  Liberalization schedules 3.6.  The customs duties resulting from the tariff elimination programme are established on an 
ad valorem basis. The Parties are however authorized to use price bands mechanisms according to 
the modalities contained in Annex 3.04(6), which foresees that the tariff elimination programme does not apply to specific duties derived from the price bands mechanisms. In the case of Chile, the products which may continue to be subject to the price bands are: some wheat products and 
flour
11; some vegetable oils and fats12; and some cane or beet sugar products.13  
3.7.  Chile's Schedule defines eleven categories. Category INM covers products for which tariff 
elimination takes place immediately at the entry into force of the Bilateral Protocol. Six categories 
cover products whose tariffs are progressively eliminated (between two and fifteen years.14) The 
last tariff elimination shall take place on 1 January 2024. Category G covers products for which the tariff is reduced, but not eliminated. Category EXCL contains products
15 which are excluded from 
liberalization. A specific category (Category "Sugar") covers six tariff lines16 for which a 
progressive elimination of the ad valorem part of the tariff (6%) shall be completed by 1 January 2012, when the ad valorem part of the tariff will  be duty free. For a number of products, Chile 
grants Guatemala a tariff rate quota (see below). 
3.8.  Guatemala's Schedule
17 defines twelve categories. Category A covers products for which 
tariffs are eliminated immediately at the entry into force of the Protocol/Agreement. Eight categories cover products whose tariffs are progressively eliminated (between five and twenty 
years.
18) The last tariff elimination shall take place on 1 January 2029. Category G covers products 
for which the tariff is reduced, but not eliminated. Category E contains products19 which are 
                                               
10 Including the tax exemption by Chile for such prod ucts as established by Article 106 of the Customs 
Ordinance, contained in the Decree No 2 from the Ministry of Finance, dated 21 July 1998 (Annex 3.05). 
11 Sub-heading 1001.90 and Heading 1101. 
12 Part of Headings 1507 through 1515.  
13 Part of Heading 1701. 
14 For Category A2 in two years; for Category B in five years; for Category B7 in seven years; for 
Category C in ten years; for Category C2 in ten years but through non-linear reduct ions; and for Category D in 
fifteen years. 
15 Are excluded, some live animals, some meat, a numb er of dairy products, some  vegetables and fruits, 
some mate, some cereals and flours, some animal and vegetable fats and oils, some prepared meat, most 
sugar and sugar confectionery, some preparations of cereals and vegetables, apple juice, some sauces and 
soups, mineral water, some juices and beverages, some  medicaments for veterinary  use, some fertilizers, 
some cosmetics preparations, some chemical products, some plastics, tires, some leather, some garment 
nesoi, worn clothing, some glass container for packing, some steel parts, as well as vehicles and parts.  
16 The following tariff lines, corresponding to sugar cane, are covered: HS 1701.11.00; 17.01.12.00; 
1701.91.00; 1701.99.10; 17.99.20; and 1701.99.90. 
17 The Schedule of Guatemala shall be interpreted pursuant to the Central American Tariff System 
(SAC). 
18 For Category B in five years, for Category B7 in seven years; for Catego ry C in ten years; for 
Category C12 in twelve years; for Category D in fift een years; for Category L in  fifteen years but through 
non-linear reductions; for Category F in twenty years; and for Category H in twenty years but through non-linear reductions. 
19 Are excluded, some live animals, some meat, some fish, a number of dairy products, some vegetables 
and fruits, some cereals and flours, some animal and ve getable fats and oils, some  prepared meat, sugar and 
sugar confectionery, some chocolate and other food products containing cocoa, some preparations of 
vegetables, some fruit juice, some sauces and soups an d other foodstuffs, beer and other alcoholic beverages, 
some residues from food industries and animal fe ed, some medicaments for veterinary use, some 
pharmaceutical goods, some fertilizers, some cosmeti cs preparations, some chemical products, some plastics, 
tires, some leather, worn clothing, used or new rags of  textile material, some glass container for packing, some 
articles of iron or steel, most vehicles and parts, collectors' items of botanic or historical interest, . WT/REG312/1 
 
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  excluded from liberalization. In addition, a specific category covers thirteen tariff lines20 for which 
a duty free tariff quota is granted by Guatemala to Chile (see below). 
3.9.  The Tables below present the liberalization programme applicable to the Parties.  
3.1.3.1  Guatemala 3.10.  Guatemala's applied tariff in 2010 consisted of 6,718 lines at the HS eight-digit level, all of 
which is ad valorem. Table 3.1 shows the scheduled  duty elimination in terms of tariff lines and 
trade, as applied by Guatemala to imports from Ch ile. Before the entry into force of the Agreement 
(in 2010), 3,168 tariff lines (47.2% of Guatemala's tariff) were already duty-free on an MFN basis. 
On the entry into force of the Agreement (2010) , an additional 393 lines (5.8% of Guatemala's 
tariff) became duty-free for imports from Chile. As a result, 53% of Guatemala's tariff was duty free for imports from Chile, corresponding to 78.1% of its imports by value (during 2007-2009) from Chile. Six further phases of duty elimin ation are scheduled for 2014, 2016, 2019, 2021, 2024 
and 2029. Ten years after the entry into force of the Agreement, 5,266 tariff lines, or 78.3% of 
Guatemala's tariff, representing 86% of imports by value from Chile, will be duty free. By the end 
of the implementation period (2029), 6,224 tariff lines, corresponding to 95% of Guatemala's 
imports from Chile will be duty free for Chilean exporters. 494 tariff lines or 7.4% of the tariff, for 
which duties are currently levied on an MFN basis, will remain dutiable. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade 
Guatemala
 
Duty phase-out 
period Number of 
lines % of total lines 
in Guatemala's 
tariff schedule Value of Guatemala 
imports from Chile 
(2007-2009) in 
million US$ % of 
Guatemala's 
total imports 
from Chile 
2007-2009 
MFN duty free (2010) 3,168 47.2 165.7 72.8 
2010 393 5.8 12.1 5.3 
2014 983 14.6 8.9 3.9 
2016 2 0.0 0.0 0.0 
2019 720 10.7 9.1 4.0 
2021 2 0.0 0.1 0.1 
2024 755 11.2 8.2 3.6 
2029 201 3.0 12.3 5.4 
Remain dutiable 494 7.4 11.3 5.0 
Total 6,718 100.00 227.7 100.0 
Note: Based on the HS 2007 nomenclature. 
 Source:  WTO estimates based on data provided by Guatemala. 
 
3.11.  Table 3.2 shows Guatemala's tariff elimination, by HS section. The 494 lines that will remain 
subject to duties once implementation is completed are found in HS sections I to III (animals, vegetables, and fats and oils), IV (prepared f oodstuffs), VI (chemicals), VII (plastics), VIII 
(leather), XI (textiles), XIII (stone, plaster and cement), XVII (vehicles), and XXI (work of art and 
antiques), with remaining final average tariffs by section ranging from 7.3% to 16.1%. 
Table 3.2 Guatemala: Tariff elimination under the Agreement, by HS section
 
HS 
section MFN 
avg.  
% Total No. 
of lines MFN 
duty-
free 
(2010) Number of duty-free lines 
No. of lines 
remaining 
dutiable 
Avg. Final 
Tariff 
(Dutiable) 
% 2010 
2014 
2016 
2019 
2021 
2024 
2029 
I 12.4 299 8 113 44   32  5 2 95 13.2  
II 9.5 376 90 60 89 2 46 2 47 10 30 16.1 
III 7.3 54 19  5   7  4  19 13.4  
IV 12.5 274 32 33 23  48  35 10 93 14.1 
V 2.7 183 120 24 4   1  34    
VI 1.9 1,109 874 7 52  78  9 14 75 8.3 
                                               
20 The thirteen tariff lines cover some dairy prod ucts, fudge, and prepared or canned tomatoes. WT/REG312/1 
 
- 12 - 
 
  HS 
section MFN 
avg.  
% Total No. 
of lines MFN 
duty-
free 
(2010) Number of duty-free lines 
No. of lines 
remaining 
dutiable 
Avg. Final 
Tariff 
(Dutiable) 
% 2010 
2014 
2016 
2019 
2021 
2024 
2029 
VII 4.7 335 141 9 12   53  51 51 18 8.9  
VIII 8.3 108 19 13 24  14  26 1 11 7.3 
IX 8.6 138 26  11     75 26   
X 5.1 294 149    8  105 32   
XI 9.7 920 114 73 373   318  2 35 5 13.0  
XII 13.2 64 2 6 27  10  19    
XIII 6.4 176 79 3 24   15  47  8 8.8  
XIV 6.9 54 15  39        
XV 3.1 697 469  41   82  52 19 34 11.2  
XVI 2.5 974 765 2 121  6  80    
XVII 8.0 234 71  11     48  104 12.3  
XVIII 3.9 237 150  50    37    
XIX 16.4 21       21    
XX 10.7 162 25 50 26  2  58 1   
XXI 7.8 9   7       2 7.5  
Total 5.7 6,718 3,168 393 983 2 720 2 755 201 494 11.2 
 
Note: Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala.  
3.12.  Chart 3.1 shows the average of dutiable rates for Guatemala. The 494 lines that remain 
subject to duties once implementation is co mpleted are distributed between 32 chapters 
corresponding to agricultural products (18 chapters ), and non-agricultural products (14 chapters). 
While remaining dutiable rates are identical to the MFN applicable rates for products classified under most chapters, average dutiable rates resu lting from the liberalization programme are lower 
than the MFN applied rates for products falling under Chapters 19, 20, 21 and 23. Average duties 
of above 20% are found in Chapters 22 (beverages, spirits and vinegars) and 10 (cereals). 
Chart 3.1 Average of dutiab le rates, by HS Chapter 
0102030
01 02 03 04 07 08 09 10 11 15 16 17 18 19 20 21 22 230102030
30 31 33 38 39 40 41 61 63 70 72 73 87 97HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
 
Source: WTO Secretariat estimates based on the data provided by Guatemala. WT/REG312/1 
 
- 13 - 
 
  3.1.3.2  Chile 
3.13.  Chile's applied tariff in 2010 consisted of 7,705 lines at the HS eight-digit level (HS 2007). 
99.9% of the tariffs were ad valorem and only 8 lines had non-ad valorem tariffs. 35 lines (0.5% 
of Chile's tariff) were duty free, corresponding to a negligible part of Chile's total imports from Guatemala. Table 3.3 shows the scheduled duty elimination in terms of tariff lines and trade, as 
applied by Chile to imports from Guatemala. Follo wing the entry into force of the Agreement, an 
additional 5,047 lines (65.5% of Chile's tariff) be came duty-free for imports from Guatemala. The 
66% of Chile's tariff that were duty free for imports from Guatemala (in 2010), corresponded to 
12.5% of imports by value from Guatemala. By the end of the implementation period (2024), 
7,129 tariff lines, or 92.5% of Chile's tariff w ill be duty free for imports from Guatemala, 
corresponding to 14.1% of its imports from Guatemala. 576 tariff lines (corresponding to 7.5% of Chile's tariff) will remain dutiable, representi ng 85.9% of Chile's imports from Guatemala. 
Table 3.3 Tariff elimination commitments under the Agreement and corresponding 
average trade 
Duty phase-out 
period Number of 
lines % of total lines 
in Guatemala's 
tariff schedule Value of Chile 
imports from 
Guatemala 
(2007-2009) in 
million US$ % of Chile's 
total imports 
from Guatemala 
2007-2009 
MFN duty free (2010) 35 0.5 0.0 0.0 
2010 5,047 65.5 10.9 12.5 
2011 3 0.0 0.0 0.0 
2014 988 12.8 1.2 1.4 
2016 6 0.1 0.0 0.0 
2019 828 10.7 0.2 0.2 
2024 222 2.9 0.0 0.0 
Remain dutiable 576 7.5 75.0 85.9 
Total 7,705 100.0 87.4 100.0 
 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data  provided by Chile and WTO-IDB. 
 
3.14.  Table 3.4 shows Chile's tariff elimination, by HS section. The 576 lines that will remain 
subject to duties once implementation is complete d are found in twelve different HS sections, as 
summarized below.  
Table 3.4 Chile: Tariff elimination und er the Agreement, by HS section  
HS 
section MFN 
avg. 
% Total No. 
of lines MFN 
duty-free 
(2010) Number of duty-free lines 
No. of 
lines 
remaini
ng 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010 
2011 
2014 
2016 
2019 
2024 
I 6.1 604  372  94  24 1 113 5.8 
II 6.0 405  244 3 55 6 57 7 33 5.4 
III 6.0 60  24  7  4  25 5.8 
IV 6.0 414  158  56  41 14 145 5.1 
V 6.0 196  159  1  36    
VI 6.0 1,223  1,033  89  12 20 69 5.9 
VII 6.0 304  158  54  34 41 17 4.2 
VIII 6.0 81  38  8  27 1 7 2.2 
IX 6.0 158  61    55 42   
X 5.9 209 4 90  11  71 33   
XI 6.0 1,093  545  485   2 44 17 6.0 
XII 6.0 109  35  29  45    
XIII 6.0 187  108  17  56  6 4.0 
XIV 6.0 60  60        
XV 6.0 637  468  70  53 16 30 4.9 
XVI 6.0 1,142 2 1,032  8  100    
XVII 5.5 333 29 116    76  112 6.0 
XVIII 6.0 258  217    41    WT/REG312/1 
 
- 14 - 
 
  HS 
section MFN 
avg. 
% Total No. 
of lines MFN 
duty-free 
(2010) Number of duty-free lines 
No. of 
lines 
remaini
ng 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010 
2011 
2014 
2016 
2019 
2024 
XIX 6.0 23      23    
XX 6.0 202  124  4  71 3   
XXI 6.0 7  5      2 6.0 
Total 6.0 7,705 35 5,047 3 988 6 828 222 576 5.1 
 
Note: For the calculation of averages, specific rates are excluded in the computation and the ad valorem 
parts of alternate rates are included. 
Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on  data provided by Chile and WTO-IDB. 
 
3.1.4  Tariff rate quotas 
3.15.  Chile and Guatemala grant each other duty free tariff rate quotas for nine products21 
(covering 21 HS lines in the case of Chile and 13 HS lines in the case of Guatemala).  
3.16.  Both Parties commit to increase progressively the TRQ quantities defined by the Bilateral 
Protocol over a period of five years (twelve years for Cow's milk cheese).22 Past these periods, the 
preferential TRQs quantities shall remain duty free. 
3.1.5  Import restrictions 3.17.  The Parties commit to eliminate and not introduce any non-tariff barriers to trade, except (i) 
if they are in conformity with Articles XX or  XXI of GATT 1994, and (ii) those regulated by 
Chapters 8 and 9 of the Agreement (respectively SPS measures and measures related to normalization and metrology, as well as authorization procedures. 
3.18.  The Parties commit not to maintain or introduce any new import restriction or prohibition, 
unless provided for by Article XI of GATT 1994, which is incorporated into and forms an integral part of the Agreement (Article 3.10). Except as  provided for by the provisions related to 
antidumping and countervailing measures, the Agre ement prohibits import price requirements. In 
case a Party adopts or maintains an import prohibition or restriction, consultations shall take place between the Parties with a view to avoid undue distortions of price mechanisms, sale and distribution of goods in either of the Parties.  
3.19.  Annex 3.10(6) foresees, as an exception to the prohibition of import restrictions, that Chile 
may adopt or maintain measures related to the import of used vehicles, and that Guatemala may maintain border controls in relation with the imports of arms, as well as import measures that may 
be applied in conformity with Decree No 15-20 07 (protection of the national deciduous fruit 
growing industry). 
3.2  Rules of origin 
3.20.  Disciplines regarding rules of origin are set out in Chapter 4 of the Agreement.
23  
3.21.  Articles 4.02 through 4.05 provide the substantive rules. A good24 is considered as 
originating when: 
a. it is wholly obtained or produced entirely in the territory of one or more Parties;  
                                               
21 Powdered milk, condensed milk, concentrated milk, cream, butter, some goat cheese, some sheep 
cheese, Cow's milk cheese (Gouda), Caramel and fudge, and tomato purees and juices. 
22 See Annex 2 to this factual presentation. 
23 Article 4.01 defines the terms used in Chapter 4. 
24 A set of goods is originating only if each good in the set is originating and meets the requirements 
established in Chapter 4. WT/REG312/1 
 
- 15 - 
 
  b. it is produced in the territory of one or more Parties, using exclusively originating 
material (as defined in Chapter 4); 
c. it is produced in the territory of one or more Parties, using non-originating materials, 
which comply with a change of classification  (CTC), a regional value content (RVC), or 
other requirement, as specified in Annex 4.03, which contains the Specific Rules; 
d. it complies with the RVC25, determined in Article 4.07, and it is produced in the territory 
of one or more Parties, though one or more non-originating parts or materials do not comply with the CTC requirement, if such lack of compliance is the result of: 
i. the good being imported once, but without assembly; 
ii. the good and its parts being classified under the same Heading because the division 
into Sub-headings is not possible; or 
iii. the good and its parts being classified under the same Heading but distinguished 
through specific descriptions. 
3.22.  For goods covered by d) above, which comply with the Specific Rules contained in 
Annex 4.03, RVC compliance shall not be necessary. 
3.23.  When goods are not wholly obtained or prod uced in one or more Parties, or when they are 
not entirely produced in one or more Parties exclusively from originating materials of one or more Parties, they must satisfy the product specific ru les in Annex 4.03. Its Section A contains general 
interpretative notes, while Section B lists the specific rules of origin applicable between the 
Parties.
26 Section C, attached to the 2007 Bilateral Protocol between Chile and Guatemala, 
complements Annex 4.03. In most cases, the specific rules require a change to a specified HS heading (four digit) or subheading (six digit), sometimes with exceptions. For a number of 
products, no change in tariff classification is required provided that a RVC (usually of no less than 
30%
27) is reached. In a few cases, the product specif ic rules define a manufacturing or processing 
operation that confers origin. This is particularly the case for some agricultural goods, some 
chemical and pharmaceutical products as well as plastics, and for some goods of historical value.  
3.24.  As a principle, and according to paragraph 3 of Article 4.02, a Party may cumulate origin in 
relation to goods from countries for which the Chile/Central America Treaty is in force. Moreover, 
goods originating from the territory of one Part y of the Treaty, incorporating goods from the 
territory of another Party, shall be considered as originating from the latter (Article 4.06). However, in cases involving Chilean goods, the Part ies shall, two years after the entry into force of 
the Agreement, establish a work programme to examine the possibility for material originating in 
Chile to benefit from cumulation with a view to comply with the intra-Central American rules of 
origin standards, provided the final goods which incorporate such materials enjoy free trade, both between Chile and each Central American country as well as among them
28 (Article 4.02, 
paragraph 5).  
                                               
25 The RVC is determined in Article 4.07. It shall, in principle, not be lower than 30%, unless specifically 
provided for in Annex 4.03. This spec ific requirement does not apply to go ods in HS Chapters 61 to 63 (Apparel 
and clothing accessories, made-up textiles ar ticles and worn clothing, in particular). 
26 These rules are also applicable between Chile and the other Central American States. 
27 The RVC is defined in Ar ticle 4.07.  RVCs are requested, usua lly as an alternative to change in 
classification, in particular for some products clas sified in Chapters 09 (Coffee), 20 (some foodstuffs), 
30 (pharmaceutical products), 31 (fertilizers), 32 (pigments), 39 (plastics), 48 (paper), 64 (footwear), 73 (articles of iron and steel), 79 (zinc), 80 (tin), 83 (miscellaneous articles of base metal), 84 and 85 (Machinery and electrical equipment), 87 (vehicles), 90  (mechanical instruments), 94 (furniture), and 96 
(miscellaneous manufactured articles). In four cases, the RVC is set at 20% (HS 8418.50 refrigerators; HS 8701-8705, 8707-8711; and 8713-8714, some vehicles). In three cases, the RVC is set at 25% (HS 3920-2921, some plastics; HS 4810, paper; and HS850710-850790, some electrical equipment). In one case, the RVC is set at 50% (HS 6401-6405, some footwear).  
28 In case such treatment is granted to a third party before it is granted to Chile, Chile should 
immediately benefit from a similar trea tment (Article 4.02, paragraph 6). WT/REG312/1 
 
- 16 - 
 
  3.25.  For the determination of origin, the princi ples of the WTO Agreement on Customs Valuation 
apply to the internal transactions, unless otherwis e provided for in the Agreement. In case of 
conflict, the specific provisions of the Agreement would prevail (Article 4.02, paragraph 2).  
3.26.  Additional disciplines on minimum operations  not conferring origin, the treatment of indirect 
materials, the de minimis  level under which non originating materials not complying with rules 
conferring origin may still be determined as originating for the purposes of the Agreement29, 
fungible goods, sets or assortments of goods, accessories, spare parts and tools, containers and 
packaging materials in which a good is packaged for retail, containers for shipment, and 
transhipment, direct shipment or international transit are contained in Articles 4.05 to 4.14. 
3.27.  Moreover, Chapter 5 on customs procedures contains administrative rules applicable to, 
inter alia , the certification and declaration of origin, which shall conform to a single certificate as 
elaborated by the Parties at the date of entry into force of the Agreement (Article 5.02). 
Disciplines related to the claim for preferential treatment, the production of supporting documents 
and other obligations related to importations, the validity of proof of origin, advance ruling are 
contained in Articles 5.03 to 5.11. In particular, a detailed verification process is also established 
by the Agreement (Article 5.08); penalties against violation of each Party's customs-related laws 
and regulation shall be maintained or adopted (Article 5.11); and confidentiality rules are established (Article 5.07). 
3.3  Export duties and charges,  and quantitative restrictions 
3.28.  The Parties commit not to maintain or introduce any new export restriction or prohibition, 
unless provided for by Article XI of GATT 1994 (Art icle 3.10). The Agreement prohibits export price 
requirements. In case a Party adopts or maintains an import prohibition or restriction, 
consultations shall take place between the Parties with a view to avoiding undue distortions of 
price mechanisms, and the sale and distribution of goods in either of the Parties.  
3.29.  Moreover, a Party may not maintain or adopt an export tax on goods destined to the other 
Party unless such taxes are imposed for internal consumption (Article 3.14). Annex 3.10(6) 
foresees, as an exception to the prohibition of export restrictions, that Guatemala may maintain border controls on the export of certain logs, timber baulks, and coffee. 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 3.30.  Chapter 8 of the Agreement covers Sanitary and Phytosanitary Measures (SPS). It 
establishes a framework, based on the WTO SPS Ag reement, concerning the principles, standards 
and procedures related to SPS measures which affect, directly or indirectly, trade between the Parties. Through mutual co-operation, the Parties shall facilitate trade, while avoiding that it 
creates a SPS risk. They also commit to prevent the introduction or dissemination of pests or 
diseases and to improve plant and animal life or health as well as food safety (Article 8.02). 
3.31.  The Agreement reaffirms the Parties' rights (Article 8.03) and obligations (Article 8.04) 
based on the disciplines contained in the WTO SPS Agreement.
30 
3.32.  The Parties will base their SPS measures on international standards and guidelines, in 
particular those of the IPPC, OIE, and Codex, but may introduce or maintain SPS measures which result in a different level of SPS protection if there is a scientific justification (Article 8.05). The 
Parties also commit to establish harmonized systems in SPS-related areas, such as sampling 
methods; testing; inspection and certification of animals, plants, and their products and 
                                               
29 The de minimis  rule is not applicable to material used in the production of goods classified under 
HS Chapters 01 to 27 (Agricultural and mineral products). 
30 The definitions of terms used in  this Chapter refer directly to those in Annex A of the WTO SPS 
Agreement, as well as those in the glossary of harm onized terms from the International Office of Epizootics 
(OIE), the International Plant Protection Convention (IPPC), and the Codex Alimentarius (Codex). WT/REG312/1 
 
- 17 - 
 
  by-products; as well as food safety. Other provis ions in Chapter 8 highlight certain aspects of 
provisions in the WTO SPS Agreement. This is in particular the case for equivalence (Article 8.06), 
risk assessment and determination of the appropriate level of protection (Article 8.07), and 
recognition of pest- or disease-free areas or areas of low pest or disease prevalence (Article 8.08). 
Annex C of the WTO SPS Agreement is applicable to the Parties in relation to control, inspection 
and approval procedures (Article 8.09). 
3.33.  The Agreement contains transparency provisions (Article 8.10), which are essentially based 
on disciplines in Annex B of the WTO SPS Agreement. The Parties shall use the Enquiry points 
established under the WTO SPS Agreement as communication channels.  
3.34.  A specific mechanism for regional co-operation is established through a Committee on 
SPS measures (Article 8.11).31 The Committee shall, inter alia , elaborate a roster of qualified 
specialists in the areas of food safety, plant and animal health, who may serve in the context of ad 
hoc expert groups. 
3.4.1.2  Technical barriers to trade 3.35.  Chapter 9 of the Agreement covers standardization and metrological measures, and 
authorization procedures. It addresses essentially measures related to Technical Barriers to Trade 
(TBT), but also expands coverage to other areas of trade.
32 While it reaffirms the Parties' existing 
rights and obligations under the WTO TBT Agreement, it also adds to them specific disciplines. 
Chapter 9 does not apply to SPS measures. 
3.36.  The Agreement recognizes each Party's right to elaborate, adopt and apply standardization 
and metrological measures, and authorization procedures, as well as technical regulations and procedures for assessment of conformity, which pe rmit the fulfilment of legitimate objectives. 
Consistent with WTO rules, such measures and procedures shall not create unnecessary obstacles 
to trade between the Parties, national treatment shall be granted to products from the other Party, and international standards shall be taken into account, as appropriate, when elaborating such 
measures (Article 9.04). When elaborating standards and technical regulations, the Parties shall 
conduct a risk assessment, taking into account Article 9.05. 
3.37.  When possible, the Parties shall endeavour to ensure compatibility between their respective 
standardization measures, without reducing the level of security and protection of human, animal 
or plant life and health, and the environment and consumer protection. A Party shall accept the other Party's technical regulations, provided the objectives of its own regulations are fulfilled. In case equivalence is not granted, the Parties' deci sions shall be explained (Article 9.06). Moreover, 
with a view to facilitating trade, positive consideration shall be given to requests by a Party to 
negotiate with the other Party agreements on the mutual recognition of conformity assessment results (Article 9.07). Similar rules apply in relation to authorization procedures.
33 
3.38.  Each Party shall ensure, as far as possible, the traceability of its metrological standards as 
recommended by the International Bureau of Weig hts and Measures (BIPM) and the International 
Organization of Legal Metrology (OIML). 
3.39.  Transparency provisions contain notificati on obligations, using WTO formats, and at the 
entry into force of the Agreement, each Party shall designate an entity to carry out notification obligations as well as to function as an information centre and to respond to enquiries on matters covered by Chapter 9 (Article 9.10).  
3.40.  Technical co-operation and exchange of information between the Parties are also 
encouraged (Article 9.13) and bilateral co-operation is strengthened through the establishment of 
                                               
31 Annex 8.11 lists the authorities of both Parties competent on SPS matters. 
32 For example, Chapter 9 also covers aspects of trade in services, for certain sectors (see below Part IV 
of this factual presentation). 
33 The terms "authorization procedure" refers to all mandatory administrative processes for obtaining a 
registration, permit, license or other au thorization, for a product or a service to be produced, sold or used for 
specific purposes or under stated conditions. WT/REG312/1 
 
- 18 - 
 
  a Committee on Standardization, metrology and authorization procedures34 to, inter alia , monitor 
the implementation and operation of Chapter 9 (Article 9.12). 
3.4.2  Safeguard mechanisms 
3.41.  Chapter 6 of the Agreement contains discipl ines on safeguards. While Articles 6.02 and 6.03 
establish the fundamental rights and obligations of the Parties related to the use of bilateral and 
global safeguards, the procedures applicable to such safeguard measures are regulated by 
Articles 6.04.  
3.42.  According to Article 6.05, in case of a dispute about a safeguard measure, a Party may not 
request the establishment of a panel (under the dispute settlement mechanism established by the 
Agreement in Chapter 19), as long as a safeguard measure is merely proposed.  
3.4.2.1  Bilateral safeguards 3.43.  Under Article 6.02, bilateral safeguards may be introduced only if, as a result of the 
reduction or elimination of a tariff under the Agreement, an originating good is imported in such 
increased quantities, either in absolute terms or relative to domestic production, and under such circumstance that the imports are a substantial cause of serious injury or threat thereof to the 
domestic industry of the importing Party producing a like or directly competitive good. The 
possibility to use bilateral safeguards is limited to  a transition period of two years from the end of 
the period foreseen, for liberalization of tariffs on each good as established in the tariff elimination 
programme. 
3.44.  The safeguard measure may consist of either a suspension of a future tariff reduction 
foreseen in the tariff elimination programme; or an increase in the rate of duty on the product back to a level that does not exceed the lesser of (i) the MFN applied rate of duty in effect at the 
time the measure is applied; and (ii) the MFN applied rate of duty in effect on the day immediately 
preceding the date of entry into force of th is Agreement. The start of an investigation
35 shall be 
notified to the other Party. A measure may not be maintained for more than three years, with the 
possibility to prolong it for an additional year, but not after the end of the transition period, unless 
the other Party agrees. Moreover, a bilateral safeguard may not be applied on a given product more than twice, and in the case of a second ap plication, a safeguard-free period equivalent to 
half of the duration of the initial measure shall be  respected. Article 6.02 foresees the possibility of 
imposing provisional safeguard measures, with ce rtain limitations. A Party applying a bilateral 
safeguard measure shall also offer compensation to the other Party. Should a mutual agreement not be found on compensation, the other Party may impose tariff measures that are substantially 
equivalent to losses caused by the imposition of a bilateral safeguard measure. 
3.4.2.2  Global safeguards 3.45.  Each Party maintains its rights and obligations to take global safeguard measures, 
consistent with Article XIX of GATT 1994 and th e WTO Agreement on Safeguards, except those 
regarding compensation or retaliation and excl usion of a safeguard measure that would be 
incompatible with the provisions of Article 6.03. Unless imports from a Party constitute a 
substantial part of total imports
36 of the other Party and an important contribution to the serious 
injury or threat thereof37, a Party imposing a global safeguard shall exclude from such measure 
the imports from the other Party. General safeguards may only take the form of tariff measures. A Party imposing a general safeguard on imports from the other Party shall offer it compensation. As 
                                               
34 The national authorities representing the Parties in the Committee are listed in Annex 9.12. 
35 The Parties have identified their in vestigation authorities in Annex 6.01. 
36 The "substantial part of total imports" condition is met when a Party is one of the five largest 
exporters of a given product into the territory of the Party envisaging the measure, based on data for the three previous years. 
37 When determining if a Party's imports would constitute an "important contribution to the serious 
injury or threat thereof", the investigating authorities of the other Party would consider factors such as the changes in the participation of the other Party in total imports, as well as the volume of imports of that other Party and changes that such volume has suffered. Generally , if a Party's growth rate during the period that saw 
the injurious surge of imports is significantly lower than the growth rate of total imports from all sources over the same period, the contribution to the serious injury is not considered "important".  WT/REG312/1 
 
- 19 - 
 
  in the case of bilateral safeguards, should a mu tual agreement not be found on compensation, the 
other Party may impose tariff measures with effect substantially equivalent to losses caused by the 
imposition of a safeguard measure. 
3.4.2.3  Safeguard measures related to  balance of payment (BOP) difficulties 
3.46.  In the event of serious BOP and external fina ncial difficulties, the Parties' rights to adopt or 
maintain restrictions on trade in goods or in trade in services are preserved in accordance with 
conditions in Article 20.04, which mirrors to a large extent the BOP provisions of the WTO Agreements and the constitutive text of the International Monetary Fund.  
3.4.3  Anti-dumping and countervailing measures 
3.47.  Chapter 7 (Unfair trade practices) confir ms the Parties' rights and obligations under 
Article VI of the GATT 1994 and the WTO Agreements on Antidumping and on Subsidies and Countervailing measures (Article 7.01). The Parties also indicate their shared objective to promote 
important reforms in that matter and commit to join efforts to achieve such reforms in the context 
of the WTO and the Free Trade Area of the Amer icas. Two years after the Treaty between Chile 
and the Central American States has entered into force for all the Parties, the Parties will establish 
a work programme to examine the possibility to promote such reforms in the framework of their 
reciprocal trade. 
3.4.4  Subsidies and State-aid 
3.48.  According to Annex 3.09, which was agreed as part of the 2007 Bilateral Protocol, Chile and 
Guatemala agreed on the shared objective of multilateral elimination of export subsidies for agricultural goods and committed to work together in view of achieving an  agreement in the WTO 
to eliminate export subsidies. Chile and Guatemala may not maintain or introduce any export 
subsidy on any agricultural good in their reciprocal trade. 
3.4.5  Customs-related procedures 3.49.  The WTO Customs Valuation Agreement is applicable for customs valuation under the 
Agreement (Article 3.08). The Parties commit not to base the determination of goods' values on 
minimal values. The Parties mutually agreed not to negotiate exceptions to this principle. 
3.50.  In relation to bilateral trade of originating goods, customs and consular fees may not be 
collected by the Parties (Article 3.11). 
3.51.  The provisions on marks of origin contained in Article IX of GATT 1994 are incorporated into 
and made an integral part of the Agreement.  
3.52.  In addition to aspects specifically related to the implementation of rules of origin disciplines, 
Chapter 5 of the Agreement covers customs procedures  at large, related to both import and export 
procedures. Obligations related to imports and exports are contained in Articles 5.03 and 5.04. Disciplines and commitments on the simplification of certain customs procedures (Article 5.05), 
confidentiality rules (Article 5.07), advance ru ling (Article 5.09), review and appeal of 
administrative decisions (Article 5.10), sanctions (Article 5.11), uniform application (Article 5.12), and co-operation in customs-related matters, including through notification of relevant laws, 
regulations, and decisions (Article 5.13) establis h a set of common rules on customs procedures.  WT/REG312/1 
 
- 20 - 
 
  4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definition 
4.1.  Rules governing cross-border trade in services38 are found in Chapter 11. Specific disciplines 
on temporary entry of business personal are contained in Chapter 14. Investment, encompassing GATS mode 3 (covered investment) but not limited to services-related investments, is dealt with in 
Chapter 10. To complement the more general disciplines on services, Chapter 12, on air transport, 
and Chapter 13, on telecommunications, establis h rules and enhance the regulatory disciplines 
specific to these two services sectors, as compared with the general provisions on services. Certain 
provisions of Chapter 9 (on standardization, metrological measures, and procedures of 
authorization
39), and of Chapter 16 (on government procur ement) refer to certain services only. In 
addition, Chapters 1, 2, and 17-21 of the Agreem ent, as well as the related Annexes, contain 
provisions of general application which may also be applicable to trade in services.  
4.2.  The measures covered by Chapter 11 include: (i) the production, distribution, marketing, sale 
and delivery of cross-border services; (ii) the purc hase, payment or use of a cross-border service; 
(iii) the access to and use of distribution and transportation systems related to cross-border 
service provision; (iv) the presence in its territory  of a service provider of the other Party; and (v) 
the provision of a bond or other form of financial security as a condition for the provision of a cross-border service. Chapter 11 however does not cover the provision of services in the territory 
of one Party, through investment in such territory. Moreover, (i) governmental subsidies; (ii) most 
air transport services
40, including traffic rights and some auxiliary services; (iii) governmental 
service or functions41, (iv) cross-border financial services; and (v) government procurement 
(Article 11.02) are excluded from the coverage of Chapter 11. 
4.3.  Non-conforming measures are listed in Annexes I and II, which contain the Parties' 
reservations on national and MFN treatments, and local presence, while Annex III lists their non-discriminatory quantitative restrictions, in relation to market access. 
4.4.  The Parties agreed to deepen the liberalization of bilateral trade in services through future 
negotiations to be initiated under the auspices of the Free Trade Commission, with a view to eliminate the remaining non-conforming measures listed in Annexes I and II (Article 11.11). 
4.2  Denial of benefits 
4.5.  Under Article 11.10, a Party may deny the benefits of the relevant chapters to a service 
supplier or investor of the other Party if that person is an enterprise owned or controlled by persons of a third party and if the service supp lier or investor has no substantive business 
activities in the territory of the other Party.  
4.3  General provisions on trade in services 4.3.1  Market access  
4.6.  No provision of the type under GATS Arti cle XVI exists in the Agreement. Article 11.09 on 
non-discriminatory quantitative restrictions
42 does not specifically prevent the Parties from taking 
quantitative restrictions, and thus does not guaran tee preferential access to each other's markets. 
                                               
38 The term "cross-border services" covers services (i ) from the territory of one Party to the territory of 
another party (mode 1); (ii) in the te rritory of a Party to a consumer of another Party (mode 2), and (iii) by a 
service provider through the presence of natural person s of a Party in the territo ry from elsewhere (mode 4). 
39 Applicable to computer and computer-related services. 
40 The following air transport services are howeve r covered by the Agreement: (i) maintenance and 
repair services; (ii) specialized air transport services; and (iii) co mputerized reservation systems. 
41 Such as: law enforcement, correctional services, pension or unemployment insurance or social 
security services, social welfare, publ ic education, public health and child attention or protection of children 
42 The term "quantitative restrictions" means measures that imposes limitations on (i) the number of 
service providers, whether in the form of numerical qu otas, monopolies, the requirement of an economic needs 
test, or through any other quantitative form; or (ii) th e number of service operations, whether in the form of 
numerical quotas, the requirement of an economic  needs test, or any other quantitative form. WT/REG312/1 
 
- 21 - 
 
  It however requests each Party to list, in Annex III of the Agreement, existing43 measures that 
constitute non-discriminatory quantitative restrictions. Moreover, non-discriminatory quantitative 
restrictions that have been or will be adopted af ter the entry into force of the Agreement shall be 
notified by one Party to the other and added to Annex III. 
4.7.  Periodically, but at least once every two ye ars, the Parties shall endeavour to negotiate the 
liberalization or the elimination of existing quantitative restrictions or restrictions that have been 
adopted by a Party after the entry into force of the Agreement.  
4.3.2  National and MFN treatments 
4.8.  Under Article 11.03 on National Treatment, each Party shall accord to (cross-border) service 
suppliers of the other Party treatment no less favourable than that it accords, in like circumstances, to its own service suppliers.  
4.9.  Under Articles 11.04 on MFN treatment, each  Party shall accord to service suppliers of the 
other Party treatment no less favourable than that it accords, in like circumstances, to service 
suppliers of non-parties to the Agreement.  
4.10.  The Parties' reservations on non-conf orming measures related to national and MFN 
treatments are contained in Annexes I and II of the Agreement. 
4.3.3  Local Presence 4.11.  Under Article 11.06, a Party shall not requir e that a service provider from the other Party 
establishes or maintain a representative office or is a resident in the Party where it provides 
services.  
4.12.  The Parties' non-conforming measures related to local presence requirements are contained 
in Annexes I and II of the Agreement. 
4.3.4  Temporary movement of business persons
44 
4.13.  Chapter 14 of the Agreement reflects th e preferential trading relationship between the 
Parties existing at the time of the conclusion of the Agreement, their mutual objective to facilitate 
temporary entry of business people of both Parties, according to the principle of reciprocity, and 
the need to establish transparent criteria and procedures for temporary entry.45 I t als o re fle c ts  
their need to ensure border security and to protect the domestic labour force and permanent 
employment in their respective territories (Article 14.02).  
4.14.  Each Party commits to grant temporary entry to business persons for the categories of 
personnel identified in Annexes 14.04 and 14.04(1), which comply with the national regulations related to health and public security, as well as for the protection of national security 
(Article 14.04). The categories of personnel covered are: (i) business visitors involved in specific 
activities; (ii) traders and investors; and (iii) personnel transferred within an enterprise. Business persons in these categories shall be considered, both by Chile and Guatemala, as performing 
activities useful and beneficiary for the respecti ve countries. They shall be granted a temporary 
resident visa, possibly extendable (Annex 14.04(1)). 
4.15.  In the case of business visitors seekin g to engage in a business activity listed in 
Appendix 14.04(A)(1)
46, a Party may require proof of nationality of the applicant, details of the 
                                               
43 The term "existing" refers to the date of entry into force of the Bilateral Protocol/Agreement between 
Chile and Guatemala (23 March 2010). 
44 "Business persons" are nationals from a Party pa rticipating in trade of goods or services, or 
investment activities. "Temporary movement" refers to the entry of a business person from a Party in the 
territory of the other Party without the intention to establish permanent residence.  
45 The existing immigration measures applicable by  the Parties are listed in Appendix 14.04(A)(3). 
46 The business activities covered by Appendix 14.04(A)(1) are the fo llowing: research and Design; 
agriculture, manufacture and production; marketing; sale s; distribution; after-sales services; general services WT/REG312/1 
 
- 22 - 
 
  activity to be conducted in the other Party, and its international character. Proof that the main 
source of revenue and the registered place of such an activity are located outside the Party 
concerned, and that the principal place of business and the place where most of the profit is made 
is located outside the territory of the Party granting temporary entry are also required. Neither Party may require, as a condition for temporary entry, prior approval procedures or petitions. 
4.16.  In the case of traders and investors, each Party shall authorize temporary entry of business 
persons with supervisory, executive or specialized  knowledge, provided that the person seeks to 
conduct a substantial trade in goods or services, principally between the territory of the two 
Parties, or to establish, develop, administer or provide technical advice in order to manage a key 
investment in which the person or enterprise is committing a substantial amount of capital.  
4.17.  In the case of personnel transferred within an enterprise, each Party shall grant temporary 
entry to a business person that seeks to carry out managerial or executive functions or that 
possess specialized knowledge. Each Party may require that the person has been employed by the 
company, continuously, during one year, within three years immediately preceding the date of filing of the application.  
4.18.  For all these categories of personnel, neither Party may require labour certification tests as 
a condition for temporary entry of traders and investors, or impose any numerical restriction relating to temporary entry.  
4.19.  The Parties agree to jointly develop criteria, definitions, and interpretations for the proper 
implementation of Chapter 14. More over, in addition to the provisions on transparency in Chapter 
17, each Party shall provide the other Party such materials that will enable it to be aware of 
measures relating to Chapter 14. Furthermore, no later than one year after the date of entry into 
force of this Agreement, the Parties shall prepare, publish and make available to interested parties 
a consolidated document with explanatory mate rial regarding the requirements for temporary 
entry (Article 14.05).  
4.20.  In case temporary entry to the territory of a Party is denied, the Dispute Settlement 
Mechanism in Chapter 19 may be used by a Party only if there is a recurrent pattern of practice, and if the affected business person has exhausted all internal administrative recourse available to 
him/her (Article 14.06). 
4.3.5  Performance requirements 4.21.  Article 11.07 establishes general principles th at the Parties shall endeavour to apply if they 
adopt measures relating to the requirements and procedures for granting permits, authorizations, 
licenses or certifications to nationals of the other Party. In particular, such measures shall be 
based on objective and transparent criteria, be not more burdensome than necessary to ensure the quality of the service, and not constitute a disguised restriction on trade in services. 
4.22.  Annex 11.13 of the Agreement contains the ru les to be followed in the professional services 
sector in the context of the harmonization of the requirements and procedures for granting 
licences.. 
4.3.6  Senior managers and board of directors 
4.23.  The Agreement does not have specific provisions concerning the nationality of senior 
managers and of the Board of Directors. Howeve r, some non-conforming measures listed in 
Annex I have nationality and/or residence requirements for senior managers and/or board of 
directors.  
4.3.7  Provisions on investment 4.24.  Chapter 10 covers investment. It states that the agreement between Chile and Guatemala 
for the promotion and reciprocal protection of investments signed on 11 November 1996 
                                                                                                                                               
(consultants, managers, supervisors, financial services pers onnel, public relations staff,  advertising staff, travel 
agents, tour guides, tour operators, translators, and interpreters). WT/REG312/1 
 
- 23 - 
 
  (hereinafter referred to as the Investment Agreement47) constitutes an integral part of the 
Agreement. However, in case of conflict betw een the Agreement and the Investment Agreement, 
the Agreement shall prevail except for matters related to initial provisions (Chapter 1), 
administration of the Agreement (Chapter 18) , dispute settlement (Chapter 19), and final 
provisions (Chapter 21). The Investment Agreement states, inter alia , that " if a Party grants 
special advantages to investors of any third party under an agreement establishing a free trade 
area, a customs union, a common market, an economic union or any other form of regional economic organization, or under an agreement partly or wholly related to taxation, a Party shall 
not be obliged to accord such advantages to the investors of the other Party" (Article IV of the 
Investment Agreement). 
4.25.  Within two years from the entry into forc e of the Agreement, the Parties shall examine the 
possibility to develop and expand the rules and disciplines in the Investment Agreement, which 
would then become part of the Agreement (Article 10.02). 
4.26.  The Agreement establishes a Committee on investment and cross-border services. 4.4  Liberalization commitments 
4.27.  Liberalization modalities for Chapter 11 follow a "negative list" approach which assumes that 
all sectors or sub-sectors covered by the chapter are liberalized, in terms of national and MFN treatment, and local presence, unless otherwise provided in the Parties' non-conforming measures 
in Annexes I and II. A phasing out calendar is foreseen for some non-conforming measures that 
were applied prior to the entry into force of the Agreement (Annex I). The phasing out takes the form of a gradual reduction of the aspects of the measures that are not in conformity with the general commitments contained in Articles 11. 03 (national treatment), 11.04 (MFN treatment), 
and/or 11.06 (local presence).  
4.28.  The Agreement does not guarantee pr eferential access to each Party's market. 
Nevertheless, the obligation to list the measures that constitute non-discriminatory quantitative 
restrictions, in Annex III to the Agreement, give s an indication of the types of market access 
restrictions that may be applied for bilateral trade in services.  
4.4.1  Chile's liberalization commitments 
4.29.  In its GATS schedule, Chile has made commitments in 42 out of 155 services sectors, 
essentially on mode 3, with some commitments  on modes 1 and 2 in telecom and tourism.  
4.30.  Chile's GATS MFN exemptions cover measures establishing dispute settlement procedures in 
bilateral treaties on the protection of investment; reciprocal measures related to maritime 
transport - in particular freight; national treatment for suppliers from signatories of the 1977 
International Land Transport Convention
48; and national treatment for certain co-produced 
cinematographic works. Under the Agreement, Chile takes MFN reservations on existing measures 
related to printing, publishing and associated industries, as well as certain communication services 
(telecommunication, press agencies, television and radio broadcasting). MFN reservations are also made in fisheries-related services, legal services and transport services (by air, road, and 
maritime), also subject to authorizations and licences. Moreover, MFN-related general reservations 
are registered for future measures in application of treaties granting preferential treatment on aviation, fishing and maritime services, including salvage. A general reservation is also registered for preferences granted to economically or social ly disadvantaged minorities as well as to the 
original ethnic groups. Chile also registered MFN reservations for certain communication services, 
education, fishing related services, social services, environmental services; and cultural industries (linked to products, publishing and distribution of books; periodicals; movies; videos; music; as 
well as activities related to radio, television, cable, and satellite transmissions). 
                                               
47 The Investment Agreement contains provisions on  the following matters: promotion, admission and 
protection of investments; treatment of investme nts; free transfer; expropriation and compensation; 
subrogation; dispute settlement between a Party and an investor of the other Party; dispute settlement between the Parties; and consultations. 
48 Argentina, Bolivia, Brazil, Paraguay, Peru, and Uruguay. WT/REG312/1 
 
- 24 - 
 
  4.31.  Under the GATS, Chile's horizontal limitations cover essentially mode 3 (the other modes 
not being covered in most cases) with limitations on the form and modalities applicable to 
commercial presence and foreign investment, including on the repatriation of capital by foreign 
companies established in Chile. An economic needs test is applicable and residency required for foreign managers. Specialists are also subject to residency requirements. National treatment 
limitations are also contained in Chile's GATS specific commitments in relation with land ownership 
in border zones. Under the Agreement, Chile re corded some horizontal limitations, covering 
national treatment and/or local presence in addition to some of the above-mentioned MFN 
reservations. In particular, a general reservation, applicable for all sectors, requires of companies 
established in Chile and employing over 25 person s that at least 85% of their staff are Chilean
49 
(the competent authorities may however determine that this 85% does not apply for certain technicians). Horizontal reservations related to th e adoption of existing and/or future measures 
establishing rights or preferences to original ethn ic groups, and the protecti on of minority groups 
are also made for national treatment and local presence . 
4.4.2  Guatemala liberalization commitments 
4.32.  In its GATS schedule, Guatemala has made commitments in 18 out of 155 services sectors.  
4.33.  Guatemala's GATS MFN exemptions cover progressive integration of services stemming 
from the Treaty of Central American Economic Integration (for all sectors)
50; the convention on 
investment guarantees with the US (related to promotion of investment); the Agreement on Trade 
and Investment between Central American countries and Colombia and Venezuela (concluded in 1993); and the Tuxtla Gutierrez Agreements
51 (concluded in 1991). Under the Agreement, 
Guatemala registers MFN reservations on existing measures related to some specialized air 
transport services). MFN-related reservations are made for future measures in relation with air 
transport; fisheries; maritime transport, including salvage; the protection of indigenous populations and of matters related to minorities and disadvantaged populations, some professional 
services as well as in matters related to social services; construction, road transport, and maritime 
transport.  
4.34.  Under the GATS, Guatemala's horizontal limi tations cover mode 4, which is unbound, except 
for measures affecting the entry and temporary stay of specific personnel. Under the Agreement, 
Guatemala registers a horizontal limitation for all sectors, covering national treatment and/or local presence in addition to the above-mentioned MFN reservations for existing or future measures taken in the context of the protection of indi genous populations and of matters related to 
minorities and disadvantaged populations. 
4.4.3  Sector specific commitments on trade in services 4.35.  Structural differences between the GATS and the trade in services provisions of the 
Agreement have to be taken into account when considering this section.  
4.36.  Tables 4.1 and 4.2 below summarize the specific commitments made by the Parties under 
the Agreement, by main sectors and subsectors, and compare them with their GATS Schedules. 
The Tables also indicate in which sector or subsector Parties have made reservations. 
Improvements in existing GATS commitments are either a reduction in the limitations applicable to national treatment, additional sub-sectors in which commitments are made, and/or new commitments. In that context, the approach ch osen by the Parties to address market access 
commitments (through the listing of discriminatory quantitative restrictions) and investments, 
including for the establishment of commercial presence by a Party in the other Party have also to be taken into account when examining each Party's commitments. Moreover, horizontal limitations 
in the GATS Schedules of Specific Commitments and reservations covering all sectors in Annexes 
I-III of the Agreement, as well as MFN reservations or exemptions, are not captured in the 
                                               
49 A similar reservation may also be applicable to local presence. 
50 According to Guatemala's List of GATS Article II MFN exemptions, the Central American exemption 
clause does not allow the extension to third countries of the bilateral or multilateral concessions made among the Central American countries themselves. 
51 With Costa Rica, El Salvador, Honduras, Mexico, and Nicaragua. WT/REG312/1 
 
- 25 - 
 
  following Tables but have been summarized in the previous section. Mode 4 commitments are also 
excluded from the Tables. 
4.37.  A more detailed examination of the Parties' sector-specific non-conforming measures that 
are different from their GATS commitments follows the Tables, which should also be read in conjunction with the Parties' Schedules in  Annexes I, II, and III of the Agreement. 
Table 4.1 Chile: comparison between the GATS  and Agreement specific commitments in 
trade in services
 
Sectors (CPC Classification) GATS  FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
1. Business services     
A. Professional Services Partial  Improved   (*)  
B. Compute r and Related Services  --- New   
C. Research and Development  Services  --- New   
D. Real Estate Services  --- New   
E. Rental/Leasing Services without Operators  Partial  Improved    
F. Othe r Business Services --- New  (*)  
2. Communication services      
A. Postal services --- New (*)  
B. Courie r services --- New   
C. Telecommunication services  Partial  Simila r (*)  
D. Audiovisual services --- New   
3. Construction and related engineering 
services      
A. General construction work  for buildings --- New   
B. General construction work  for civil Engineering  --- New (*)  
C. Installation and assembly  work  --- New   
D. Building completion and finishing work  --- New   
E. Othe r --- New   
4. Distribution services     
A. Commission agents' services --- New   
B. Wholesale trade services --- New   
C. Retailing services --- New   
D. Franchising --- New   
5. Education services     
A. Primary education services  --- New   
B. Secondary education services  --- New   
C. Higher education services  --- New   
D. Adult education --- New   
E. Other education services  --- New   
6. Environmental services      
A. Sewage services --- New (*)  
B. Refuse disposal services --- New   
C. Sanitation and similar services  --- New   
D. Othe r --- New   
7. Financial services     
A. All insurance and insurance-related services  Partial  Improved    
B. Banking and othe r financial  services Partial  Improved    
8. Health related an d social services     
A. Hospital services --- New   
B. Other Human Health Services --- New   
C. Social Services --- New   
D. Othe r --- New   
9. Tourism and travel related services      
A. Hotels and restaurants (including catering) Partial  Improved    
B. Travel agencies and tou r operators services Partial  Improved    
C. Tourist guides services Partial  Improved    
10. Recreational and cultural and sporting 
services     
A. Entertainment services --- New   
B. News agency services --- New   
C. Libraries, archives, museums and other cultural 
services --- New   
D. Sporting and other recreational services  --- New   
11. Transport services      
A. Maritime Transport Services --- New   
B. Internal Waterways Transport --- New   
C. Air Transport Services Partial  Simila r   
D. Space Transport  --- New   
E. Rail Transport Services --- New   
F. Road Transport Services --- New   
G. Pipeline Transport  --- New   WT/REG312/1 
 
- 26 - 
 
  Sectors (CPC Classification) GATS  FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
H. Services auxiliary to all modes of transport  --- New   
I. Othe r Transport Services  --- New   
 
Note:   
Partial: GATS commitments subject to some limitation(s ) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can always be seen as "improved". 
Improved:Overall improved commitments  made under the Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
: Reservation listed in Annexes I or II of a FTA Party's Schedule (existing or future non-conforming 
measures). 
(*): Reservation listed in Annex III of a Party's Schedule (existing non- discriminatory quantitative 
restriction). 
 Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W /CHL), prepared by the 
Secretariat (in 2003) and Chile Schedules annexed to the Agreement.  
Table 4.2 Guatemala: comparison between  the GATS and the Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS  FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
1. Business services     
A. Professional Services --- New   
B. Compute r and Related Services  Partial  Improved    
C. Research and Development  Services  --- New   
D. Real Estate Services  ---  New   
E. Rental/Leasing Services without Operators  --- New   
F. Othe r Business Services ---  New   
2. Communication services      
A. Postal services --- New (*)  
B. Courie r services --- New   
C. Telecommunication services  Partial  Improved    
D. Audiovisual services --- New   
3. Construction and related engineering 
services      
A. General construction work  for buildings --- New   
B. General construction work  for civil Engineering  --- New   
C. Installation and assembly  work  --- New   
D. Building completion and finishing work  --- New   
E. Othe r --- New   
4. Distribution services     
A. Commission agents' services --- New   
B. Wholesale trade services --- New   
C. Retailing services --- New   
D. Franchising --- New   
5. Education services     
A. Primary education services  --- New   
B. Secondary education services  --- New   
C. Higher education services  --- New   
D. Adult education --- New   
E. Other education services  --- New   
6. Environmental services      
A. Sewage services --- New   
B. Refuse disposal services --- New   
C. Sanitation and similar services  --- New   
D. Othe r --- New   
7. Financial services     
A. All insurance and insurance-related services  Partial  Improved    
B. Banking and othe r financial  services Partial  Improved    
8. Health related an d social services     
A. Hospital services --- New   
B. Other Human Health Services --- New   
C. Social Services --- New   
D. Othe r --- New   WT/REG312/1 
 
- 27 - 
 
  Sectors (CPC Classification) GATS  FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-conforming 
measure(s) Reservation(s) 
for future 
measures 
9. Tourism and travel related services      
A. Hotels and restaurants (including catering) Partial  Improved    
B. Travel agencies and tou r operators services Partial  Improved    
C. Tourist guides services --- New   
10. Recreational and cultural and sporting 
services     
A. Entertainment services --- New   
B. News agency services --- New   
C. Libraries, archives, museums and other cultural 
services --- New   
D. Sporting and other recreational services  --- New   
11. Transport services      
A. Maritime Transport Services --- New   
B. Internal Waterways Transport --- New   
C. Air Transport Services Partial  Improved    
D. Space Transport  --- New   
E. Rail Transport Services --- New   
F. Road Transport Services --- New (*)  
G. Pipeline Transport  --- New   
H. Services auxiliary to all modes of transport  --- New   
I. Othe r Transport Services  --- New   
 
Note: Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, 
 under any of the three modes. 
Full:  GATS commitments not subject to limitation(s) under market access or national treatment, 
 under any of the three modes. 
---:  No commitments under GATS. New:  New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
 can always be seen as "improved". 
Improved: Overall improved commit ments made under the Agreement as compared to those under the 
 GATS. 
Similar:  Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
 limited additional reservations. 
:  Reservation listed in Annexes I or II of a FTA Party's Schedule (existing or future non-conforming 
 measures). 
(*):  Reservation listed in Anne x III of a Party's Schedule (existin g non-discriminatory quantitative 
 restriction). 
 Source:   Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/GTM), prepared by 
 the Secretariat (in 2003) and Guatemala Schedules annexed to the Agreement.  
 
4.4.3.1  Business services 
4.38.  Chile builds on its GATS Schedule by expanding the coverage of its commitments to 
Guatemala, though registering a number of limitations for existing measures as well as 
reservations for possible future measures in: (i) some professional services, such as accounting and auditing, engineering services, integrated engi neering services, and legal services; (ii) some 
research and development services; and (iii) some other business services, such as printing and 
publishing, services incidental to fishing, and investigation and security. It also lists some market 
access (MA) restrictions in certain professional services and some services incidental to energy distribution. 
4.39.  Guatemala, which not bound professional se rvices under GATS, covers the sector under the 
Agreement, though with limitations for existing and future measures in this sector. Computer and related services, partially bound under the GATS, are covered under the Agreement without any 
limitation. Reservations covering existing and fu ture measures on services related to fisheries 
(unbound under GATS) are registered by Guatemala under the Agreement. 
4.40.  In addition, and as indicated, Annex 11.13 establishes rules for the harmonization of 
measures regulating the recognition of qualifications by and the practice in the other Party.  WT/REG312/1 
 
- 28 - 
 
  4.4.3.2  Communication services 
4.41.  Under the Agreement, postal services (unbound under the GATS) are covered, though both 
Parties have market access restrictions. Telecommunication services (partly committed by both 
Parties in the GATS) are subject to reservations by  Chile, including in market access (though not 
introducing a substantially preferential treatment in bilateral trade). Courier services are fully 
liberalized for both Parties without reservations. Chile's reservation in the Agreement with a view 
to maintaining its rights to take future measures on basic telecommunications does not always match with, and potentially goes further than, its limitations in the GATS. The Parties also make 
commitments in audiovisual services (not covered under the GATS for both Parties), though Chile 
has certain limitations on existing and future measures.  
4.42.  Additionally, Chapter 13 of the Agreement contains rules and disciplines specific to 
telecommunications (see below). 
4.4.3.3  Construction and related engineering services 
4.43.  No commitments were made by the Part ies under the GATS. Under the Agreement, Chile 
and Guatemala cover the sector although Chile list s an existing market access restriction (related 
to general construction work for some civil engineering) as well as a reservation for future 
measures, and Guatemala registers a general reservation for this sector for possible future measures.  
4.4.3.4  Distribution services 
4.44.  Neither Party has commitments under the GATS. Under the Agreement, they both cover the 
entire sector but with reservations, in the case of Chile, for future measures related to the distribution of films and music.  
4.4.3.5  Educational services 
4.45.  This sector which is not included by the Parties' GATS commitments is covered under the 
Agreement, with Chile making a general re servation for possible future measures.  
4.4.3.6  Environmental services 
4.46.  Neither Party has commitments under the GATS. Under the Agreement, Chile registers 
non-conforming measures limited to sewage services-related possible future measures.  
4.4.3.7  Financial services 
4.47.  The financial services sector (bound by both Parties under the GATS with some limitations) 
is included in the Agreement and not subject to any specific non-conforming measures.  
4.4.3.8  Health related and social services 
4.48.  Under the Agreement, this sector (for  which there are no GATS commitments by the 
Parties), is fully covered. Both Parties, neverthe less, registers a reservation for future measures 
for social services though their inclusion under this sector may be debatable. 
4.4.3.9  Tourism and travel related services 
4.49.  Under the GATS, Chile had fully covered th e sector, but only for mode 3, while Guatemala 
had not covered it. Under the Agreement, the Parties cover the entire sector, though with a 
limitation for existing measures related to tourist guides registered by Guatemala. 
4.4.3.10  Recreational, cultural and sporting services 4.50.  Under the Agreement, the whole sector (not covered under the GATS for both Parties) is 
covered through the negative list approach, but Chile reserve existing measures for some WT/REG312/1 
 
- 29 - 
 
  entertainment services, news agency services, and sporting and other recreational services. 
Guatemala also enters a reservation on existing measures covering some entertainment services.  
4.4.3.11  Transport services 
4.51.  Both Parties have included certain services  auxiliary to air transport under the GATS. Under 
the Agreement, the whole sector is covered, thou gh only to a limited extent for air transport, 
though it remains debateable that the non-conformi ng measures registered by both Parties are at 
all covered under the GATS. Chile lists existing no n-conforming measures for maritime and internal 
waterways transport services with new measures that could also be introduced (also in the case of 
Guatemala). Chile's GATS limitations are essentially replicated under the Agreement. Existing non-
conforming measures are also listed by both Parties for some road transport services (including an existing market access limitation in the case of Guatemala) and, by Chile only, for certain services auxiliary to all modes of transport.  
4.52.  Chapter 12 of the Agreement also contains certain disciplines specific to air transport 
services (see below). 
4.5  Sector specific provisions in trade in services 
4.53.  In addition to the provisions in Chapte r 11 of the Agreement on cross-border trade in 
services, the Agreement establishes specific discipl ines for air transport services (Chapter 12) and 
telecommunication services (Chapter 13). 
4.5.1  Air Transport 
4.54.  Chapter 12 of the Agreement contains rules an d disciplines specific to air transport services. 
Accordingly, bilateral agreements on air transpor t between Chile and a Central American State are 
incorporated into and shall form part of the Agreem ent. In case of conflict between such a bilateral 
agreement and the Agreement, the Agreement shal l prevail. Moreover, disputes related to air-
transport matters, including in relation with provisions contained in bilateral agreements, shall be settled according to the dispute settlement mechanism established under Chapter 19 of the 
Agreement. 
4.55.  A Committee on Air Transport is establishe d to monitor the implementation of Chapter 12.  
4.5.2  Telecommunication services  
4.56.  Chapter 13 of the Agreement contains disciplines applicable to measures (i) adopted or 
maintained by a Party relating to the provision of public telecommunications; (ii) adopted or maintained by a Party relating to access to and use of networks or public telecommunications services by persons of another Party, including access and use by such persons operating private 
networks to carry out their internal communications business; (iii) adopted or maintained by a 
Party relating to the provision of value added serv ices by persons of another Party in the territory 
or across its borders; and (iv) relating to standardization regarding the attachment of terminal or 
other equipment to public telecommunications networks.
52  
4.57.  Chapter 13 covers topics such as acce ss and use of public telecommunications transport 
networks and services (Article 13.04), conditions for the provision of value added or improved 
services (Article 13.05), measures related to standardization53 (Article 13.06), monopolies and 
anti-competitive practices (Article 13.07), transpar ency (Article 13.08), relation to international 
organizations (Article 13.10), as well as technical cooperation and consultations (Article 13.11). The disciplines of Chapter 13 replicate some of the WTO rules contained in the Annex on 
telecommunications, and adapt to the telecommunications sector some of the disciplines on 
domestic regulations, on monopolies and exclus ive service suppliers, and on business practices 
                                               
52 Chapter 13 of the Chile - Central America Treaty is not applicable to bilateral relations between Chile 
and Costa Rica. 
53 Chile's and Guatemala's existing conformity assess ment procedures are listed in Annex 13.02 of the 
Agreement. WT/REG312/1 
 
- 30 - 
 
  contained in the GATS. In the event of any inco nsistency between Chapter 13 and other chapters 
of the Agreement, Chapter 13 shall prevail to the extent of the inconsistency.  
4.6  Regulatory provisions  
4.6.1  Domestic regulation 4.58.  The Agreement does not contain any specific disciplines on domestic regulations, as such. 
However, certain telecommunications provisions relate to domestic regulations and are covered in 
Chapter 13. 
4.6.2  Recognition 
4.59.  Annex 11.13, on professional services, contains provisions on the recognition of 
qualifications. Where a Party recognizes, autonomously or by agreement or arrangement, the qualification obtained in the territory of a non-party, which Party is not required to accord such recognition to the qualification obtained in the territory of the other Party. A Party shall however 
afford the other Party adequate opportunity to demonstrate that qualifications obtained in that 
other Party’s territory should also be recognized, or to negotiate or enter into an agreement or arrangement of comparable effect. Annex 11.13 also establishes the basis for the recognition of 
qualifications and authorization to practice. Besides these, the Agreement does not contain any 
specific disciplines in relation to recognition. 
4.6.3  Subsidies 
4.60.  The Agreement does not contain any specific disciplines on subsidies in trade in services. 
4.6.4  Transparency  4.61.  In addition to the general provisions contained in Chapter 17, the Parties shall establish 
procedures to ensure the notification of change s to non-conforming measures listed in Annexes I 
and II, the future quantitative restrictions to market access to be listed in Annex III, as well as the 
commitments to liberalize quantitative restrictions, licensing requirements, and other non-discriminatory measures, as well as consultations on reservations, quantitative restrictions or 
commitments, aimed at achieving furt her liberalization (Article 11.12). 
4.6.5  Safeguards 4.62.  The Agreement does not contain any specific disciplines on safeguards in trade in services. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 5.1.  Chapter 17 of the Agreement refers to  transparency. The provisions include: the 
establishment by each Party of an information centre (Article 17.02); the publication of laws, 
regulations, and procedures and administrative rulings of general application relating to matters 
covered by the Agreement (Article 17.03); notification and provision of information to the other Party (Article 17.04); due process obligations regarding administrative proceedings 
(Article 17.05); administrative procedures for the adoption of measures of general application 
(Article 17.06), and review and appeals (Article 17.07). The Agreement also contains provisions 
protecting confidentiality (Articles 5.07, 6.04, and 20.05). 
5.2.  All notification obligations in the Agreement shall be met through the national sections of the 
Secretariat of the Free Trade Commission (see below). Communications related to dispute settlement shall also be copied for information to the Secretariat of the Central American Economic 
Integration (SIECA). 
5.3.  Moreover, provisions in the Agreement dealing specifically with customs procedures 
(Chapter 5), safeguards (Chapter 6), SPS measures (Chapter 8), standards and metrology WT/REG312/1 
 
- 31 - 
 
  (Chapter 9), cross border trade in services, including telecommunications, and temporary 
movement of persons (Chapters 11, 13, and 14), and government procurement (Chapter 16) also 
contain transparency obligations. 
5.2  Exceptions 5.4.  Chapter 20 of the Agreement states the exceptions applicable when measures are taken in 
relation with the Agreement. The Agreement incorporates, through Article 20.02, the Parties' 
rights and obligations in respect of general exceptions which are governed by Article XX of the GATT 1994 for trade in goods; technical barriers to trade, including SPS measures; competition 
policies; and government procurement. Moreover, prior to adopting a measure that would comply 
with obligations under an intergovernmental commo dity agreement, of the kind referred to in 
paragraph h) of Article XX of GATT 1994, a Party sh all consult the other Party to avoid nullification 
or impairment of a tariff concession granted in  the context of the tariff elimination programme 
(Article 3.15). 
5.5.  The Agreement also incorporates the Parties' rights and obligations contained in Article XIV of 
the GATS for trade in services; including services-related aspects covered under Parts 2 and 3 of 
the Agreement, covering essentially trade in goods as well as technical barriers to trade. 
Article XIV of GATS also applies to services-relat ed aspects of Chapters 15 and 16 (competition 
policies and government procurement). 
5.6.  Through the incorporation, in Article 20.03, of a text similar to that of Articles XXI of the 
GATT 1994 and XIVbis of the GATS, the Agreement al so reserves the application by the Parties of 
measures related to national security.  
5.7.  According to Article 20.06, measures related to taxation are excluded from the coverage of 
the Agreement, except when taxation-related me asures may conflict with the commitment made, 
in the Agreement, by the Parties on national treatment (Article 3.03) in the same manner as 
foreseen in Article III of GATT 1994, and on expo rt duties in the context of the programme of 
liberalization (Article 3.14). The Parties commit to conclude, within a reasonable time, a bilateral 
treaty to avoid double taxation (Annex 20.06) pending which time such tax avoidance will be 
regulated through an exchange of letters.  
5.3  Accession and Withdrawal 
5.8.  There are no specific provisions on third party accession to the Agreement. However, the 
Agreement is part of the Treaty on Free Trade between Chile and Central America and includes 
six parties.  
5.9.  The disciplines governing termination are contained in Article 21.05 and foresee that the 
rights and obligations contracted by a Party notifying its intention to denounce the Agreement will cease to exist within 180 days. In case Chile deno unces the Agreement, the Treaty shall cease to 
exist between the other Parties also. 
5.4  Government procurement 5.10.  Government procurement is covered by Chapter 16 of the Agreement
54, which applies to 
goods and cross-border services.55 However, a number of government entities56 listed in 
                                               
54 None of the Parties are Parties to the plurilateral Government Procurement Agreement (GPA) 
negotiated under the auspices of the WTO, though Chile has been granted the observer status. 
55 For services, subject to the reservations contained in Annexes I and II of the Agreement (containing 
the lists of non-conforming measures). 
56 For Chile: Comptroller General of the Republic; Central bank: Ar med forces; Law enforcement and 
public safety forces; Municipalities; National Television Council; State enterprises; Judiciary power (Tribunal of justice); Legislative power (National Congress); Constitutional court; El ectoral Court; Regional Electoral 
Courts; Higher Education Co uncil; and Public ministry. For Guatemala:  National Defence Ministry; National 
Electrification Institute; Auditor General; Bank of Guatem ala; Ministry of Interior; Judicial organism; Congress; 
Constitutional Court; Supreme Electoral Tribunal; Public Ministry; Attorney General of the Nation; State and local public companies; Municipalities; Public entities, decentralized and autonomous, that are excluded from WT/REG312/1 
 
- 32 - 
 
  Annex 16.01, are excluded from its coverage. Also excluded are: government procurement related 
to (i) defence and of other strategic nature or national security; (ii) recruitment of personnel 
aimed at fulfilling the functions of the entities; and (iii) projects funded from States, multilateral or 
regional institutions or individuals that impose conditions inconsistent with the provisions of this Chapter (Annex 16.02). Neither does Chapter 16 ap ply to (i) service-related subsidies; (ii) 
governmental services or functions
57; and (iii) cross-border financial services. 
5.11.  For government procurement that is included in Chapter 16, the Parties guarantee that the 
goods and services providers of the other Party shall participate on an equal footing in public 
procurement, that the principles of national treatment and non-discrimination will apply 
(Article 16.04), that transparency shall be guaran teed (Article 16.05), and that mechanisms of 
co-operation and technical assistance shall be developed (Article 16.13). 
5.12.  Modifications to the coverage of Chapter 16 may be requested by a Party, in particular to 
examine the possibility to incorporate entities list ed in Annex 16.01. Consultations shall take place 
between the Parties to determine if and how such coverage may be expanded (Article 16.09).  
5.13.  Denial of benefits may take place for a service provider of a Party controlled by persons of a 
non-party or not having substantial business activities in the Area of the other Party 
(Article 16.07).  
5.14.  The Agreement defines standards and modalities applicable to matters such as technical 
specifications (Article 16.06), procedures to challenge decisions (Article 16.08), privatization 
(Article 16.10), and the use of information technology (Article 16.11).  
5.15.  A Committee on Government Procurement is established for the monitoring and effective 
implementation and operation of Chapter 9 (Article 16.12). 
5.5  Intellectual property rights 
5.16.  The Agreement does not contain a specific section on intellectual property rights, per se. 5.17.  However, geographical indications (GIs) of  goods from one Party shall be recognized and 
protected by the other Party in conformity with the provisions of Article 3.12 of the Agreement
58, 
and of Article 22, paragraph 1, of the TRIPS Agr eement. In order to be granted protection, GIs 
shall be notified to the other Party. The Parties may however authorize homonymous GIs and 
origin designations, which may rightfully belong to a third party. 
5.6  Others 5.6.1  Competition 5.18.  Chapter 15 of the Agreement contains specific provisions with regard to competition 
policies, monopolies and State enterprises.  
5.19.  In relation with competition, the Parties sh all ensure that the benefits of the Agreement are 
not undermined by anticompetitive business practice s. Similarly, they shall endeavour to move 
towards the adoption of common measures to avoid them, and seek to establish mechanisms to 
facilitate and promote the development of compet ition policies and ensure implementation of 
regulations on free competition, in order to avoid negative effects of anti-competitive business 
practices in the Free Trade Area. 
5.20.  Nothing in the Agreement prevents the Part ies from maintaining or establishing monopolies 
or State enterprises. They shall nevertheless ensure that such monopolies or enterprises act in a manner compatible with the provisions of th e Agreement, and ensure non-discriminatory 
                                                                                                                                               
the application of procurement proced ures contained in the Government Procurement Act and its Regulations 
(Decree No. 57-92 of the Congress and its regulations). 
57 Such as: execution of the laws, correctional servic es, pension or unemployment insurance or social 
security services, social welfare, public education, public training, health and child care and child protection. 
58 Article 3.12 forms part of Chapter 3 covering nati onal treatment and market access (trade in goods). WT/REG312/1 
 
- 33 - 
 
  treatment to investment and investors, goods,  and service providers from the other Party 
(Article 15.02). This provision does not apply in cases of acquisition of goods or services by 
government entities for their own use. 
5.7  Institutional framework 5.21.  Chapter 18 of the Agreement
59 covers institutional arrangements and establishes a Free 
Trade Commission to ensure the proper operat ion of the Agreement and to supervise its 
implementation and application (Article 18.01). It  also supervises the work of all the Committees 
established by the Agreement. To assist the Commission in its technical work, the Agreement 
establishes a Free Trade Sub-Commission (Article 18.02). A Secretariat, organized by national 
sections, is established to assist the Commission and the Sub-Commission, to administratively support the Panels established in conformity with the Agreement-specific dispute settlement 
mechanism, and to circulate the Parties' communications and notifications (Article 18.03).  
5.22.  A Committee on trade in goods is established by Article 3.16 to, inter alia , consider matters 
related to the implementation of Chapters 3 (National Treatment and Market Access), 4 (Rules of origin), and 5 (Customs Procedures) of th e Agreement. The Committee may also examine 
adjustments related to the Parties' Tariff concessions, as required, including the possible 
acceleration of the tariff elimination programme. 
5.23.  The establishment of Committees, Sub-Committees, and Groups of Experts is also foreseen 
by Chapter 18.  
5.24.  The institutional framework established und er the Agreement is summarized in Chart 5.1.  
Chart 5.1 Institutional Framework establis hed by the Treaty on Free Trade between 
Chile and Central America 
 
 
          
 
        
 
 
 
   
 
  
 
                                               
59 Annexes 18.01(1) and 18.02 identify the Parties' representatives in the Free Trade Commission and in 
the Free Trade Sub-Commission.  Free Trade Commission i 
(Art. 18.01) 
i  Possibility to create other Committees. 
* Possibility to establish Sub-committees as  well as ad hoc Groups of Experts. 
 
Source: WTO Secretariat based on the Agreement. Panel(s) (Art. 19.11) 
Committee on Trade in Goods (Article 3.16 )* 
Committee on SPS measures (Article 8.11 )* 
Committee on Standardization, Metrology and 
Authorization Procedures (Article 9.12) * 
Committee on Air Transport (Article 12.04) * 
Committee on Government Procurement  
(Article 16.13) * National Sections 
 
- Chile 
- Costa Rica 
- El Salvador - Guatemala 
- Honduras 
- Nicaragua Free Trade Sub-Commission 
(Art. 18.02) 
Secretariat (Art. 18.03) 
Committee on Investment and Cross-border Services 
(Article 11.14 )* WT/REG312/1 
 
- 34 - 
 
  5.8  Dispute settlement 
5.25.  Chapter 19 sets out the procedures and institutional arrangements that apply in cases of 
disputes between the Parties regarding questions of interpretation or application of the Agreement. 
The dispute settlement mechanism is also applicable in case an action by a Party is considered to be inconsistent with its obligations under the Agreement or in case of nullification or impairment of 
benefits accruing to a Party under the Agreement.
60 
5.26.  Article 19.04 provides for "forum shopping" as well as "forum exclusion" clauses for matters 
falling under the Agreement and the WTO Agreements. Accordingly, a Party shall be considered to 
have selected a forum when it has requested the establishment of a panel either under the WTO or 
under the Agreement. 
5.27.  Chapter 19 provides for detailed steps in the process for dispute resolution, the salient 
features of which are described in Chart 5.2 below. If the Parties fail to resolve a dispute through 
consultations, they may refer the case to the Free Trade Commission with a view to finding a 
mutually satisfactory solution.61 The Commission may call upon technical experts, establish groups 
of experts, solicit good offices, conciliation or me diation by other persons or groups of persons, or 
formulate recommendations (Article 19.07). Subsequently, the case may be referred, upon 
request by a Party, to a Panel composed of thr ee independent arbitrators chosen by the Parties 
among a list to be established by consensus by the Parties (Article 19.09). The Panel may decide 
to request scientific information and technical ad vice from experts, as necessary (Article 19.14). 
Majority voting and publication of dissenting opinions are foreseen in cases where the Tribunal cannot reach consensus. 
5.28.  An Interim report (Article 19.15) shall be issued to the Parties, in principle within 90 days, 
followed by a final ruling within 30 days. The fina l report (Article 19.16), which is binding on the 
Parties, shall be made public within 15 days after being transmitted to them. 
5.29.  Unless the Parties agree otherwise, the arbitration ruling shall be complied with within 
six months at the most. Where there is a disagreement between the Parties on the consistency of 
the compliance measures the original Panel shall rule on the compliance or lack of.  
5.30.  In case of non-compliance, the complaining Party is entitled to temporarily suspend 
concessions either in the same sector as that affected, or, if this is not feasible, in a different 
sector. If the Party complained against considers that the level of suspension is not equivalent to the nullification or impairment caused by the violation, it may request the original Panel to rule on the matter. A review of measures taken to co mply after the suspension of obligations, is 
undertaken by the original Panel, upon request by the Party complained against when it considers 
that it has brought its measures into conformity and that the suspension of obligations must be terminated.  
5.31.  None of the Parties may, in their national  legislation, authorize a private party to take a 
legal action alleging that a measure taken by the other Party is incompatible with the Agreement (Article 19.20). 
                                               
60 Annex 19.03 clarifies the coverage of the Agreement for which a Party may initiate a nullification or 
impairment case. 
61 The Commission may also, when requested, provid e for an interpretation of the Agreement, which 
may be used before national judicial an d administrative instances (Article 19.19). WT/REG312/1 
 
- 35 - 
 
  Chart 5.2 Specific Dispute Settlement Mech anism established by the Treaty on Free 
Trade between Chile and Central America 
 
 
 
 5.32.  In relation to international commercial disputes between private parties within the Free Trade Area, the Parties shall promote and facilitate arbitration through alternative means 
(Article 19.21). They will also make available ap propriate procedures to ensure observance of 
international arbitration conventions they have ratified, as well as the recognition and enforcement of arbitral awards in such disputes. The Commissi on may also establish an Advisory Committee on 
Private Commercial Disputes. 
5.9  Relationship with other agreements concluded by the Parties 5.33.  The Parties confirm the rights and obligations between them in conformity with the WTO 
Agreement, as well as other international agreements they are party to. In case of conflict 
between the Agreement and the other agreements, th e provisions of the Agreement prevail to the 
extent of the conflict (Article 1.04, paragraph 2) . However, the Convention on International Trade 
in Endangered Species of Wild Fauna and Flor a (CITES) of 1973, the Montreal Protocol on 
Substances that Deplete the Ozone Layer of 1990 , and the Basel Convention on the Control of 
Trans boundary Movements of Hazardous Wastes and Their Disposal of 1989 prevail over the 
Agreement in case of conflict with it (Article 1.04). 
5.34.  The Parties' regional trade agreements in force (both notified and non-notified) are listed in 
Table 5.1.  Request for consultations and 
consultations (Art. 19.06) 
Request for the establishment  
of a Panel (Art. 19.08) 
Proceedings (Art. 19.12)  
Issuance of Final Report of 
the Panel (Art. 19.16) Preliminary Report to the Parties 
(Art. 19.15) 
Implementation 
Suspension of 
benefits  Determination of compliance 
by the Panel (Art. 19.18) Non-Implementation WT/REG312/1 
 
- 36 - 
 
  Table 5.1 Chile and Guatemala: Participation in  other RTAs (notified and non-notified in 
force), as of 18 March 2013*  
Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
CHILE  
Malaysia 25.02.12 
(Malaysia) 
18.04.12 
(Chile) Goods 2013 GATT Art. XXIV 
Turkey 01.03.11 Goods 2011 GATT Art. XXIV 
Colombia 08.05.09 Goods & 
Services 2009 GATT Art. XXIV & GATS Art. V 
Australia 06.03.09 Goods & 
Services 2009 GATT Art. XXIV & GATS Art. V 
Peru 01.03.09 Goods & 
Services 2011 GATT Art. XXIV & GATS Art. V 
Honduras (Chile-Central 
America) 19.07.08 Goods & 
Services 2011 GATT Art. XXIV & GATS Art. V 
Panama 07.03.08 Goods & 
Services 2008 GATT Art. XXIV & GATS Art. V 
Japan 03.09.07 Goods & 
Services 2007 GATT Art. XXIV & GATS Art. V 
India 17.08.07 Goods 2009 Enabling Clause 
China 01.10.06 
01.08.10 Goods 
Services 2007 
2010 GATT Art. XXIV 
GATS Art. V 
Brunei, New Zealand, 
Singapore (Trans-Pacific 
SEP) 28.05.06 Goods & 
Services 2007 GATT Art. XXIV & GATS Art. V 
European Union 01.03.05 
01.02.03 Services 
Goods 2005 
2004 GATS Art. V 
GATT Art. XXIV 
EFTA 01.12.04 Goods & 
Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & 
Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & 
Services 2003 GATT Art. XXIV & GATS Art. V 
El Salvador (Chile-Central 
America) 01.06.02 Goods & 
Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica (Chile-Central 
America) 15.02.02 Goods & 
Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & 
Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & 
Services 1997 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Nicaragua (Chile-Central 
America) 19.10.12 Goods & 
Services Not 
notified  
Ecuador (AAP.CE N°65) 25.01.10 Goods Not 
notified  WT/REG312/1 
 
- 37 - 
 
  Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Cuba (AAP.CE N°42) 27.06.08 Goods Not 
notified  
MERCOSUR (AAP.CE N°35) 01.10.96 Goods Not 
notified  
Bolivia (AAP.CE N°22) 06.04.93 Goods Not 
notified  
Venezuela (AAP.CE N°23) 02.04.93 Goods Not 
notified  
Argentina (AAP.CE N°16) 02.08.91 Goods Not 
notified  
LAIA - Accession of 
Panama 10.05.12 Goods Not 
notified  
LAIA (except Mexico) - 
Seeds 
(AAP.AG N° 2) 07.06.93 Goods Not 
notified  
LAIA - Cultural Goods  
(AR.CEYC N°7) 28.07.01 Goods Not 
notified  
LAIA - Unilateral 
preferences in favour of 
Bolivia (AR.AM N°1) 27.01.84 Goods Not 
notified  
LAIA - Unilateral 
preferences in favour of Ecuador (AR.AM N°2) 27.01.84 Goods Not 
notified  
LAIA - Unilateral 
preferences in favour of 
Paraguay (AR.AM N°3) 27.01.84 Goods Not 
notified  
GUATEMALA 
European Union-Central 
America a Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
Colombia (Colombia-
Northern Triangle) 12.11.09 Goods & 
Services 2012 GATT Art. XXIV & GATS Art. V 
TPKM 01.07.06 Goods & 
Services 2011 GATT Art. XXIV & GATS Art. V 
DR-CAFTA 01.07.06 Goods & 
Services 2006 GATT Art. XXIV & GATS Art. V 
Dominican Republic-Central 
America 15.10.01 Goods & 
Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico (Mexico-Northern 
Triangle) 15.03.01 Goods & 
Services 2006 GATT Art. XXIV & GATS Art. V 
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
Panama (Panama-Central 
America) 20.06.09 Goods & 
Services Not notified 
Cuba (AAP.A25TM N°36) 18.05.01 Goods Not notified 
Venezuela (AAP.CE N°23) 10.04.86 Goods Not notified 
a Provisional application of the Agreement by all signatory parties is expected in the course of the 
second quarter 2013. 
Source: WTO Secretariat.  LAIA:  Latin American Integration Association 
EFTA:  European Free Trade Association GSTP:  Global System of Trade Pref erences among developing countries 
PTN:  Protocol on Trade Negotiations DR-CAFTA  Dominican Republic - Central America - United States Free Trade Agreement CACM  Central American Common Market 
TPKM  the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu WT/REG312/1 
 
- 38 - 
 
  ACE:  Economic Complementarity Agreements 
AAP.AG:  Agreements under Article 12 of the Montevideo Treaty on Agricultural Goods. 
AR.CEYC:  Agreements on Co-operation  and Exchange of Cultural Goods. 
AAP.A25TM: Agreements signed under Article 25 of the "1980 Treaty of Montevideo" – Agreements concluded 
 with non-LAIA Latin American Countries 
 
* For those agreements negotiated under the LAIA frame work, the LAIA reference is  i n c l u d e d  i n  b r a c k e t s .  
Details of these agreements can be found at: http://www.aladi.org .  
"Partial scope" agreements are those RTAs not providin g for the establishment of a free-trade area and/or 
providing for a limited coverage. WT/REG312/1 
 
- 39 - 
 
  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
The Guatemalan Market 
1. Annex Table A1.1 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs applied to Guatemala's imports from Chile and its 
MFN rates at the entry into force of the Agreemen t. Guatemala's average applied MFN rate in 2010 
was 5.7% (10% for agricultural products and 5.1%  for non-agricultural products). MFN duty-free 
tariff lines accounted for 47.2% of all tariff lines.  At the date of entry into force of the Agreement 
(23 March 2010), Chilean exporters enjoyed an absolute margin of preference of 0.9% vis-à-vis  
the prevailing MFN tariff; 2.1% for agricultural goods and 0.8% for non-agricultural products. The share of duty free lines applicable to imports from Chile was 53%. Ten years after the entry into 
force of the Agreement (2020), the number of duty free lines for Chilean products will correspond 
to 78.4% of all tariff lines (62.7% for agricu ltural products, and 80.9% for non-agricultural 
products). At the end of the implementation period , in 2029, Chilean exporters will face zero duties 
on 92.6% tariff lines (74.5% for agricultural pr oducts and 95.6% for non-agricultural products). 
Table A1.1 Guatemala: Indicators of MFN tari ff rates and preferential rates for imports 
from Chile
 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 5.7 11.1 47.2 10.0 13.2 22.5 5.1 10.6 51.2 
Chile 2010 4.8 10.2 53.0 7.9 12.3 36.1 4.3 9.7 55.8 
 2011 4.3 9.1 53.0 7.3 11.4 36.1 3.8 8.6 55.8 
 2012 3.8 8.0 53.0 6.7 10.5 36.1 3.3 7.4 55.8 
 2013 3.3 6.9 53.0 6.1 9.6 36.1 2.8 6.3 55.8 
 2014 2.8 8.5 67.6 5.6 10.9 49.2 2.3 7.9 70.6 
 2015 2.5 7.8 67.6 5.3 10.4 49.2 2.1 7.0 70.6 
 2016 2.3 7.0 67.7 5.0 10.0 49.4 1.8 6.2 70.6 
 2017 2.0 6.3 67.7 4.8 9.4 49.4 1.6 5.4 70.6 
 2018 1.8 5.5 67.7 4.5 8.9 49.4 1.3 4.6 70.6 
 2019 1.6 7.2 78.4 4.3 11.4 62.7 1.1 5.8 80.9 
 2020 1.4 6.7 78.4 4.1 11.1 62.7 1.0 5.3 80.9 
 2021 1.3 6.1 78.4 4.0 10.8 62.9 0.9 4.7 80.9 
 2022 1.2 5.6 78.4 3.9 10.4 62.9 0.8 4.1 80.9 
 2023 1.1 5.1 78.4 3.7 10.1 62.9 0.7 3.5 80.9 
 2024 1.0 9.5 89.7 3.6 13.1 72.4 0.6 7.4 92.5 
 2025 1.0 9.3 89.7 3.6 13.0 72.4 0.5 7.1 92.5 
 2026 0.9 9.1 89.7 3.6 12.9 72.4 0.5 6.9 92.5 
 2027 0.9 9.0 89.7 3.5 12.8 72.4 0.5 6.7 92.5 
 2028 0.9 8.8 89.7 3.5 12.8 72.4 0.5 6.4 92.5 
 2029 0.9 12.1 92.6 3.5 13.7 74.5 0.5 10.6 95.6 
 
a WTO Definition.  Note: Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala.  
2. Annex Table A1.2 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Chile's top 25 global exports. During 2005-2007 Chile's top 
25 exports accounted for 74.8% of its global exports; these corresponded to 51 lines at the 
HS eight-digit level. Before the entry into force of the Agreement 27 of these tariff lines were duty free on an MFN basis. At the entry into force of the Agreement, in March 2010, 6 additional lines WT/REG312/1 
 
- 40 - 
 
  became duty free. At the end of the implementation period for Guatemala (in 2029), 1 tariff line1 
will remain dutiable. 
Table A1.2 Guatemala: Market access opport unities under the agreement for Chile's top 
25 exports  
Chile's top export products in 2007-2009  Access Conditions to Guatemala's import 
markets  
MFN (2010) Duty-free in 
Remain 
dutiable HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines  Duty-
free 
Dutiable 
2010 
2014 
2024 
2029 
740311 -- cathodes and sections of 
cathodes 29.3 0.0 1       
260300 Copper ores and concentrates. 18.2 0.0 1       
740200 Unrefined copper; copper anodes 
for electrolytic refining. 3.8 0.0 1       
261310 - roasted 2.4 0.0 1       
080610 - fresh 1.9 15.0  1 1     
470321 -- coniferous 1.8 0.0 1       
220421 -- in containers holding 2 l or less 1.8 20.0  1 1     
470329 -- non-coniferous 1.6 0.0 1       
710812 -- other unwrought forms 1.2 5.0  1  1    
261390 - other 1.1 0.0 1       
440710 - coniferous 1.0 5.0  1    1  
740319 -- other 1.0 0.0 1       
271019 -- other 1.0 3.5 8 5 1  4   
080810 - apples 0.9 25.0  1 1     
720270 - ferro-molybdenum 0.9 0.0 1       
030429 -- other 0.9 15.0  8  5  2 1 
230120 - flours, meals and pellets, of fish 
or of crustaceans, molluscs or other aquatic invertebrates 0.9 2.5 1 1  1    
740400 Copper waste and scrap. 0.8 0.0 1       
030419 -- other 0.8 0.0  1   1   
271011 -- light oils and preparations 0.7 2.1 5 2 2     
740811 -- of which the maximum cross-
sectional dimension exceeds 6 mm 0.7 0.0 1       
710691 -- unwrought 0.6 10.0  1  1    
290511 -- methanol (methyl alcohol) 0.6 0.0 1       
280120 - iodine 0.6 0.0 1       
030319 -- other 0.5 0.0  1  1    
Total of above 74.8  27 24 6 9 5 3 1 
 
Note: Based on HS 2007 nomenclature.  Source: WTO estimates based on data provided  by Guatemala and UNSD, Comtrade database. 
 
The Chilean Market 
3. Annex Table A1.3 provides a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs applied to Chile's imports from Guatemala and its MFN rates at the entry into force of the Agreement. Chile's average applied MFN rate in 2010 was 
6% overall, for agricultural products, as well as for non-agricultural products. MFN duty-free tariff 
lines accounted for 0.5% of all tariff lines. At the date of entry into force of the Agreement (23 March 2010), Guatemalan exporters enjoyed an  absolute margin of preference of 4.3% 
vis-à-vis  the prevailing MFN tariff; 3% for agricultural goods and 5.5% for non-agricultural 
products. The share of duty free lines applicable  to imports from Guatemala was 66.5%. At the 
end of the implementation period in 2024, Guatemalan  exporters will face zero duties on 92.5% of 
their exports to Chile (69.6% for agricultural products and 96.1% for non-agricultural products).
 
                                               
1 Some fish products. WT/REG312/1 
 
- 41 - 
 
  Table A1.3 Chile: Indicators of MFN tariff rates and preferential rates for imports from 
Guatemala  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 6.0 6.0 0.5 6.0 6.0 0.0 6.0 6.0 0.5 
Guatemala 2010 1.7 5.0 66.0 3.0 5.3 43.2 1.5 4.9 69.5 
 2011 1.5 4.3 66.0 2.7 4.8 43.5 1.3 4.2 69.5 
 2012 1.3 3.7 66.0 2.5 4.5 43.5 1.1 3.5 69.5 
 2013 1.0 3.0 66.0 2.3 4.0 43.5 0.8 2.8 69.5 
 2014 0.8 3.8 78.8 2.0 4.8 57.3 0.6 3.5 82.2 
 2015 0.7 3.5 78.8 2.0 4.6 57.3 0.6 3.1 82.2 
 2016 0.7 3.2 78.9 1.9 4.5 57.9 0.5 2.7 82.2 
 2017 0.6 2.8 78.9 1.8 4.3 57.9 0.4 2.3 82.2 
 2018 0.5 2.5 78.9 1.7 4.2 57.9 0.3 1.9 82.2 
 2019 0.5 4.4 89.6 1.7 5.2 67.6 0.3 3.9 93.1 
 2020 0.4 4.3 89.6 1.7 5.2 67.6 0.3 3.8 93.1 
 2021 0.4 4.2 89.6 1.6 5.1 67.6 0.2 3.6 93.1 
 2022 0.4 4.2 89.6 1.6 5.1 67.6 0.2 3.4 93.1 
 2023 0.4 4.1 89.6 1.6 5.1 67.6 0.2 3.3 93.1 
 2024 0.4 5.5 92.5 1.6 5.4 69.6 0.2 5.6 96.1 
 
a WTO Definition.  Note: For the calculation of averages, specific rates are excluded in the computation and the ad valorem  
parts of alternate rates are included. 
Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on  data provided by Chile and WTO-IDB. 
 
4. Annex Table A1.2 gives an indication of additional market access resulting from the entry 
into force of the Agreement for Guatemala's top 25 global exports. During 2007-2009 Guatemala's 
top 25 exports accounted for 53.5% of its global  exports and corresponding to 54 lines at the 
eight-digit level. Before the entry into force of the Agreement none of these tariff lines were duty 
free for Guatemalan exporters. However, at the entry into force of the Agreement, in March 2010, 
13 lines became duty free. 27 more lines will become duty free in 2014. At the end of the 
implementation period for Chile (in 2024), 14 tariff lines will remain dutiable. 
Table A1.4 Chile: Market access opportunities  under the agreement for Guatemala's top 
25 exports  
Guatemala's top export products in 2007-2009  Access Conditions to Chile's import markets  
MFN (2010) Duty-free in 
Remain 
dutiable  HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
tariff 
lines 2010 2014 
090111 -- not decaffeinated 8.3 6 1 1   
610610 - of cotton 6.1 6 1  1  
170111 -- cane sugar 5.7 6 1   1 
080300 Bananas, including plantains, 
fresh or dried. 5.1 
6 1 1   
270900 Petroleum oils and oils obtained 
from bituminous minerals, crude. 3.7 
6 2 2   
261610 - silver ores and concentrates 3.7 6 1 1   
090830 - cardamoms 3.0 6 1  1  
610510 - of cotton 2.0 6 4  4  
080719 -- other 1.5 6 1 1   
400122 -- technically specified natural 
rubber (tsnr)  
1.5 6 1 1   
620463 -- of synthetic fibres 1.3 6 8  8  
300490 - other 1.3 6 2 1  1 WT/REG312/1 
 
- 42 - 
 
  Guatemala's top export products in 2007-2009  Access Conditions to Chile's import markets  
MFN (2010) Duty-free in 
Remain 
dutiable  HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
tariff 
lines 2010 2014 
151110 - crude oil 1.3 6 1 1   
220710 - undenatured ethyl alcohol of an 
alcoholic strength by volume of 
80% vol or higher 0.9 
6 1   1 
220210 - waters, including mineral waters 
and aerated waters, containing added sugar or other sweetening matter or flavoured 0.9 
6 1   1 
210410 - soups and broths and 
preparations therefor 0.8 
6 3   3 
610620 - of man-made fibres 0.8 6 1  1  
481910 - cartons, boxes and cases, of 
corrugated paper or paperboard 0.8 
6 2  2  
300450 - other medicaments containing 
vitamins or other products of heading 29.36 0.8 
6 2 1  1 
271112 -- propane 0.7 6 1 1   
400110 - natural rubber latex, whether or 
not pre-vulcanised 0.7 
6 1 1   
611020 - of cotton 0.7 6 1  1  
030613 -- shrimps and prawns 0.7 6 9  9  
701090 - other 0.6 6 6   6 
600622 -- dyed 0.6 6 1 1   
Total of above 53.5  54 13 27 14 
 Note: For the calculation of averages, specific rates are excluded in the computation and the ad valorem  
parts of alternate rates are included. 
Based on the HS 2007 nomenclature.  Source: WTO estimates based on data provid ed by Chile and UNSD, Comtrade database. 
 WT/REG312/1 
 
- 43 - 
 
  ANNEX 2 
SUMMARY OF TRQ COMMITMENTS UNDERTAKEN BY THE PARTIES 
Table A2.1 Chile: Summary of Tariff Rate Quot as opened for products from Guatemala in 
quota Tariff Rates are to become duty fr ee at the end of the transitional period 
Goods (HS) 
ChileanTariff 
Classification  Annual quota 
quantity  
(metric tonnes) Annual increase of the quota 
quantity and duration of the 
transitional period 
Powdered milk 0402.10.00 
0402.21.11 0402.21.12 0402.21.13 0402.21.14 0402.21.15 0402.21.16 0402.21.17 
0402.21.18 200 3% annually during 5 years  
Powdered milk 0402.21.18 350 3% annually during 5 years 
Condensed milk 0402.99.10 500 5% annually during 5 years 
Concentrated milk, cream 0403.90.00 
0404.90.00 100 3% annually during 5 years 
Butter 0405.10.00 100 3% annually during 5 years 
Mature goat cheese, 
mature sheep cheese  0406.90.90 200 5% annually during 5 years 
Cow milk (Gouda) 0406.90.10 30 To progressively reach 80 metric 
tonnes by the end of 12 years 
Caramel, fudge 1901.90.11 40 3% annually during 5 years 
Tomato purees and juices 2002.90.11 
2002.90.12 2002.90.19 2002.90.90 40 -  
 
Note: Chile had not taken any TRQ commitment under the GATT.  Source: Article I of the 2007 Bilateral Protocol between Chile and Guatemala, Section A.  
Table A2.2 Guatemala: Summary of Tariff Rate  Quotas opened for products from Chile  
In quota Tariff Rates are to become duty free at the end of the transitional period  
Goods (HS) 
Guatemalan 
Tariff 
Classification  Annual quota 
quantity  
(metric tonnes) Annual increase of the quota 
quantity and duration of the 
transitional period 
Powdered milk 0402.10.00 
0402.21.12 0402.21.22 200 3% annually during 5 years  
Powdered milk 0402.21.21 350 3% annually during 5 years 
Condensed milk 0402.99.10 500 5% annually during 5 years 
Concentrated milk, cream 0403.90.10 
0403.90.90 
0404.90.00 100 3% annually during 5 years 
Butter 0405.10.00 100 3% annually during 5 years 
Mature goat cheese, 
mature sheep cheese  0406.90.90 200 5% annually during 5 years 
Cow milk (Gouda) 0406.90.90 30 To progressively reach 80 metric 
tonnes by the end of 12 years 
Caramel, fudge 1901.90.90 40 3% annually during 5 years 
Tomato purees and juices 2002.90.90 40 -  
 Note: Guatemala had not taken any TRQ commitment under the GATT.  Source: Article I of the 2007 Bilateral Protocol between Chile and Guatemala, Section A. 
__________