WT/REG164/R/I  
 
6 November 2014  
(14-6468)  Page: 1/8  
Committee on Regional Trade Agreements 
 Original: English  
 
EU-CHILE IMPLEMENTATION REPORT  
JOINT SUBMISSION BY THE PARTIES ON THE TRADE PILLAR OF THE EU-CHILE ASSOCIATION 
AGREEMENT  
 This Implementation Report has been draf ted in accordance with Article 15 of the 
Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 
issued in January 2013. 
 
 This report does not prejudge the Parties' po sition on the concept and the duration of the 
implementation periods in FTAs and their relationship to the "reasonable length of time" within the 
meaning of Art. XXIV:5(c) of the GATT 1994 or "the reasonable time-frame" within Art. V:1(b) of 
the GATS.  
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1  BACKGROUND INFORMATION ON THE AGREEMENT 
1.1.  The Association Agreement (AA) was signed on 18 November 2002 and most provisions of its 
Trade Part entered into force on 1 February 2003. The provisions related to trade in services and 
establishment entered into force on 1 March 2005. After the last three EU enlargements, the 
10+2+1 new EU Member States became contracting parties in 2004, 2007 and 20131 respectively. 
1.2.  Statistical data on trade in goods and on trade in services between the Parties as well as 
some indications on Parties' import coverage after full implementation of the AA can be found in 
Annexes 1 and 2 of this report.  
2  PROVISIONS ON TRADE IN GOODS 2.1  Import duties and charges,  and quantitative restrictions 
2.1.  The Tariff Elimination Schedules between Chil e and EU have been completed over a period of 
ten years for agricultural and processed agricultural imports and for fish and fishery imports originating in Chile. Industrial goods were subject to a shorter liberalization period of three years, 
in accordance with Annex I (the Community's Tariff Elimination Schedule) and with Annex II 
(Chile's Tariff Elimination Schedule) of the Agreement. In addition, some goods as explained further below were subject to Tariff Rate Quotas and some of them excluded of any tariff 
preferences. These goods were subject to a further negotiation commitment. 
2.2.  During this implementation period, no change was made to the original liberalization 
schedules. The evolution clause on Trade in Goods (Article 74) triggered some discussions but no formal negotiations have started for the moment. 
                                               
1 Croatia's accession to the EU (01.07.13). The Protoc ol on accession of Croatia to the EU has not been 
signed yet although Chile has unilaterally extended tariff preferences to Croatia. WT/REG164/R/I 
 
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  2.1.1  Tariffs 
2.3.  Please refer to Annex I of the Agreement: 
 EU's tariff elimination schedule: 
http://eur-lex.europa.eu/legal-content/EN/TX T/?uri=uriserv:OJ.L_ .2002.352.01.0001.01.ENG  
 
 for Chile's tariff elimination schedule:  
http://www.direcon.gob.cl 
 
2.1.2  Tariff quotas 
2.4.  The tariff rate quotas that are in place under  the Agreement have been applied as of its entry 
into force, in accordance with the conditions me ntioned in the relevant Annex of the Agreement. 
These quotas are managed on a fi rst-come first-served basis.  
2.5.  Since the entry into force of the Agreement, there were no particular issues to report on and 
no changes were made to the Agreement in this area.  
2.1.3  Products excluded from liberalization  
2.6.  In the EU schedule of concessions, more than 500 tariff lines are excluded from EU tariff 
concessions, in particular in the meat, dairy, cereals and sugar sectors.  
2.7.  In the Chile schedule of concessions, 138 tariff lines are excluded from Chile tariff 
concessions, in particular dairy, wheat, sugar and vegetal oils for human consumption. 
2.1.4  Final tariff schedule applied by RTA parties 
2.8.  Final data to be found in the EC-IDB submission 2013, provided to the WTO Secretariat in 
March 2013. 
2.2  Export duties and charges,  and quantitative restrictions 
2.9.  No export prohibitions or restrictions have been applied as potentially allowed under Art. 76 
of the Agreement. 
2.3  Regulatory provisions on trade in goods 
2.3.1  Rules of origin  
2.10.  In 2003 the Parties agreed on explanator y notes to Annex III (published in the OJ C 321, 
31.12.2003, p. 22) as revised in 2005 (OJ C 56, 5.03.2005, p. 36) that clarifies the definition of 
the concept of originating products and methods of administrative cooperation.  
2.11.  In addition, in 2011 Parties agreed on an explanatory note on the territorial application of 
the Agreement stating that the terms "customs territory of the Community" covers the customs territory of the European Community (now the European Union) as defined in Article 3.1 of Council 
Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code, 
without prejudice to any future amendment or repealing of the existing legislation. This 
modification was adopted by Decision No 1/2012 of the EU-CHILE Committee on customs 
cooperation and rules of origin.  
2.3.2  Non-tariff barriers 2.12.  The Agreement established a Special Committee on Standard, Technical Regulation and 
Conformity Assessment that has allowed the Parties to monitor the implementation of the 
Agreement and constitutes a forum to solve potential trade issues.  WT/REG164/R/I 
 
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  2.13.  Since the entry into force of the Agreement, the Committee on Standard, Technical 
Regulation and Conformity Assessment has met on a yearly basis to develop a work programme that includes regulatory issues for a better und erstanding and implementation of the standards 
and technical regulations.  
2.3.3  Sanitary and phytosanitary measures 
2.14.  Since the entry into force of the Agreement, the Joint Management Committee (JMC) on 
Sanitary and Phytosanitary Measures has met on a yearly basis to develop a work programme that 
includes issues related to market access and impl ementation of the SPS standards. Additionally 
this Committee establish a working group related to Animal Welfare that met also on a yearly basis and develop their own work programme and inform their activities to the JMC. 
2.15.  Some of the issues discussed in the JMC, has been related to the implementation of the 
chapter and the commitments of it.  
2.16.  Among those was the modification of Anne x I on the Decision 2006/766/EC which indicates 
that the conditions applicable in Chile (Third country) to live bivalve molluscs echinoderms, 
tunicates and marine gastropods intended for export to the EU are equivalent to those laid down in 
the relevant EU legislation.  
2.3.4  Trade in wines and spirit  drinks and aromatized drinks 
2.17.  Since the entry into force of the Agreemen t, the Parties have established a Joint Committee 
to work in this area. This Committee has met on a yearly basis to develop a work programme that includes regulatory issues that facilitate trade and eliminate some regulatory procedures.  
2.3.5  Trade defence instruments 
2.18.  The Parties have not applied any measure using the mechanisms established under the 
Agreement. 
3  PROVISIONS ON TRADE IN SERVICES 
3.1  Commitments 
3.1.  The provisions related to trade in services  (Title III of the Trade Part of the Agreement) 
entered into force on 1 March 2005 and cover all the four modes of supply. This notably includes 
commercial presence and therefore direct investment in services sectors, through a combination of 
horizontal commitments applying across the board to all sectors, with sector-specific commitments.  
3.2.  The only excluded sectors are: audio-visu al services, maritime cabotage and air transport 
services (except repair and aircraft maintenance, computer reservation systems and sales and 
marketing of air transport services). 
3.3.  The Agreement adopts a GATS-like approach wi th positive listing of commitments on national 
treatment and MFN and, as there was no implementation (transitional/ progressive) period 
foreseen by the Agreement, there is little to repo rt on in term of implementation. The evolution 
clause on Trade in Services (Article 100 & 101) triggered some discussions between 2006-2007 
and early 2010; but the Parties eventually decided not to start formal negotiations for the 
moment.  
3.2  Regulatory provisions  3.4.  Regarding movement of people, the Agreement goes beyond the GATS by providing a specific 
review of rules in this area. 
3.5.  Since the entry into force of the Agreement, however, there have been no particular issues to 
report on and no changes were made to the Agreement in this area. WT/REG164/R/I 
 
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  4  OTHER PROVISIONS IN THE AGREEMENT  
4.1  Investment 4.1.  The Agreement contains a number of WTO-plus features e.g. the chapter on investment in 
goods provides commitments at the pre-establishm ent phase, based on the principle of national 
treatment, together with an undertaking to review the legal framework for investment in both 
Parties. In addition, the Agreement refers to exis ting Bilateral Investment Treaties between Chile 
and EU Member States and confirms their validity.  
4.2.  Since the entry into force of the Agreement, there have been no particular issues to report on 
and no changes were made to the Agreement in this area. 
4.2  Government procurement  4.3.  The Agreement is broadly based on the Government Procurement Agreement (GPA) 
framework but simplifies certain procurement rules.  Since the entry into force of the Agreement, 
there have been no particular issues to report on and no changes were made to the Agreement in this area.  
4.3  Trade and competition 
4.4.  The Parties apply their respective competition laws to avoid that the benefits of the 
liberalization process in goods and services be diminished or eliminated by anti-competitive 
business conduct. Additionally, the Agreement establishes disciplines regarding notification, 
consultation, exchange of non-confidential information and technical assistance.  
4.4  Intellectual property rights 4.5.  The Parties have agreed to cooperate, according to capabilities, in matters relating to the 
practice, promotion, dissemination, streamlining, management, harmonization, protection and 
effective application of intellectual property righ ts. They also cooperate on the prevention of 
abuses of such rights, the fight against counterfeiting and piracy, and the establishment and 
strengthening of national organizations for control and protection of such rights. In relation to 
geographical indications (GIs) the Agreement is ba sed on adherence to international agreements.  
4.5  Economic cooperation and capacity building 
4.6.  Cooperation between customs administrati ons and economic operators is often strongly 
emphasized in EU positions on trade facilitation and this is also dealt with in the Association Agreement. In Article 79.4 (a), the Parties agree to establish appropriate consultation mechanisms 
between their administrations and economic operators so as to ensure timely consultation with the 
operators on substantial matters concerning legislative proposals and general procedures relating 
to customs.  
4.6  Sustainable development 
4.6.1  Social cooperation (Article 44 of the AA) 
4.7.  The EU and Chile cooperate to promote ILO conventions dealing with labour standards. In 
particular, on labour related issues, there have been five employment dialogues that were 
successful and Parties show strong interest to cont inue with these dialogues. In relation to civil 
society (Art. 11), Chile has held two meetings , (2006 and 2011) while the EU one (2011). 
4.6.2  Cooperation on the environment (Article 28 of the AA) 4.8.  Under the framework of the Cooperation Work Programme 2007-2013, the Parties developed 
some activities and the "Social Cohesion Program", and "Competitiveness and Innovation 
Programme" were one of the most important. Some areas like: Diagnosis and Financing for Sustainable Energy, Regional Protected Areas and Extended Producer Responsibility were WT/REG164/R/I 
 
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  incorporated in this program. Finally is significant to mention the implementation of the Strategic 
Environmental Assessment (SEA) project in Chile.  
4.7  Dispute settlement  4.9.  The Agreement includes a dispute settlement mechanism based on the model of the WTO 
Dispute Settlement Understanding. The Parties have not made use of this mechanism. WT/REG164/R/I 
 
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  ANNEX 1 
STATISTICS ON TRADE IN GOODS 
Table A1.1 EU(27): Import s from Chile (million €) 
Year Total Agricultural products* Non-agricultural products* 
2003 5,001 1,105 3,896 
2004 7,354 1,277 6,077 
2005 8,155 1,398 6,757 
2006 12,477 1,555 10,922 
2007 12,570 1,701 10,869 
2008 11,305 1,958 9,347 
2009 7,520 1,962 5,559 
2010 9,468 1,872 7,597 
2011 11,093 2,038 9,055 
2012 9,687 2,058 7,629 
2013 8,994 2,252 6,742 
*WTO definition. 
 Source: EUROSTAT (Comext).  
 
Table A1.2 Chile: Imports from  the EU(27) (million US$ CIF) 
Year Total Agricultural products* Non-agricultural products* 
2003 3,280 125 3,155 
2004 3,646 129 3,517 
2005 5,199 144 5,054 
2006 5,584 158 5,426 
2007 6,295 238 6,057 
2008 7,769 249 7,520 
2009 6,855 210 6,644 
2010 8,018 301 7,717 
2011 10,344 420 9,924 
2012 10,635 457 10,178 
*WTO definition. 
 Source: DIRECON Studies Department, with  data from Banco Central de Chile. 
 Chile's imports: UNSD , Comtrade database. 
 
Table A1.3 – EU(27) import coverage afte r full implementation of the Agreement  
Coverage 2007 2008 2009 2010 2011 2012 2013 
% of tariff lines 86 87 86 88 87 87 90 
% of imports 93 90 86 92 92 96 95 
 
Note:  
 Line coverage (% tariff lines)  is calculated as duty-free quota- free EU(27) tariff lines on imports 
from Chile divided by total EU(27) ta riff lines on imports from Chile. 
 Trade coverage (% imports ) is calculated as duty -free quota-free EU(27) im ports from Chile divided 
by total EU(27) imports from Chile, equal to EU 's "substantially all trade" (SAT) definition. 
 For calculation of the coverage ra tes the preferential tariffs in fo rce on 1 January of the indicated 
years has been used.   
   Source: EUROSTAT (Comext). 
 WT/REG164/R/I 
 
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  ANNEX 2 
STATISTICS ON TRADE IN SERVICES 
Table A2.1 - Foreign direct investme nts EU(27) - Chile (as from 2004)  
Year Million Euro Year-on-year growth % 
Stocks  Flows  Stocks  Flows  
Inward  Outward  Inward  Outward  Inward  Outward  Inward  Outward  
2004 1,723 16,332 23 1,987     
2005 774 18,227 -26 889 -55% 12%  -55% 
2006 548 13,764 200 997 -29% -24%  12% 
2007 1,953 14,412 1,122 733 256% 5% 461% -26% 
2008 3,956 15,325 608 1,258 103% 6% -46% 72% 
2009 3,575 19,484 -699 308 -10% 27%  -76% 
2010 1,375 25,680 676 1,941 -62% 32%  530% 
2011 2,194 25,506 982 1,207 60% -1% 45% -38% 
2012 2,561 28,503 371 3,127 17% 12% -62% 159% 
 
Source:  Eurostat (BOP_FDI_MAIN) 16 December 2013.  
             Prepared by DG Trade - Chief Economist Unit - Statistics sector.  
 
Chart A2.1 - EU(27): Foreign di rect investments with Chile  
-1,000-50005001,0001,5002,0002,5003,0003,500
05,00010,00015,00020,00025,00030,000
2004 2005 2006 2007 2008 2009 2010 2011 2012FDI flows (million €)FDI Stocks (million €)
Stocks Inward Stocks Outward Flows Inward Flows Outward
 
 
Source:  Eurostat (BOP_FDI_MAIN) 16 December 2013.                Prepared by DG Trad e - Chief Economist Unit  - Statistics sector. 
  
 WT/REG164/R/I 
 
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  Table A2.2 - EU(27) trade in se rvices with Chile (million €)  
 2004  2005  2006  2007  2008  2009  2010  2011  2012  
Debits (Imports) 
Current account, Services  844  1,074  1,219  1,430  1,836  1,600  1,617  1,525  1,635  
Branding, Quasi-transit adjustment          
Transportation  429  611  746  800  785  672  799  836  893  
Sea transport  310  398  483  463  496  462  537  533  567  
Air transport  99  155  141  201  170  121  180  207  229  
Other transport  21  56  121  137  117  90  82  97  95  
Travel  210  248  209  295  273  191  189  198  250  
Other services  205  211  258  331  775  733  625  490  496  
Communications services  21  24  26  26  25  32  63  54  68  
Construction services  27  12  17  9  20  6  10  17  45  
Insurance services  9  8  20  21  14  15  22  29  37  
Financial services  4  16  21  47  48  49  62  71  59  
Computer and information services  1  21  5  6  4  7  20  18  18  
Royalties and license fees  14  6  3  6  5  5  4  7  6  
Other business services  109  82  122  164  609  573  419  270  244  
Personal, cultural and recreational 
services  2  5  5  8  8  3  6  7  3  
Government services, n.i.e.  19  38  40  44  41  44  20  17  15  
Services not allocated  -0  4  5  1  4  3  2  2  -2  
Commercial services a)  824  1,036  1,178  1,386  1,796  1,556  1,598  1,509  1,621  
Credits (Exports) 
Current account, Services  1,350  2,237  2,526  2,875  2,677  2,300  2,343  3,117  3,213  
Branding, Quasi-transit adjustment          
Transportation  604  1,321  1,351  1,224  1,402  1,153  1,441  1,644  1,340  
Sea transport  429  1,121  1,155  1,009  1,169  961  1,173  1,348  1,034  
Air transport  159  183  180  191  211  174  250  255  266  
Other transport  15  19  16  25  23  19  19  44  39  
Travel  112  192  261  684  314  130  154  262  287  
Other services  630  720  912  959  961  1,013  749  1,208  1,587  
Communications services  23  26  31  30  55  53  62  73  75  
Construction services  93  68  59  88  48  52  46  65  107  
Insurance services  86  60  105  105  73  120  -377  8  187  
Financial services  28  40  53  81  83  119  218  187  167  
Computer and information services  15  26  33  81  78  79  135  137  135  
Royalties and license fees  23  50  41  46  54  77  88  114  140  
Other business services  353  441  574  504  549  480  555  603  759  
Personal, cultural and recreational 
services  1  1  5  3  4  22  4  5  6  
Government services, n.i.e.  8  8  11  20  16  12  16  15  11  
Services not allocated  4  3  2  4  -1  -0  -2  -0  -2  
Commercial services a)  1,342  2,229  2,515  2,855  2,662  2,289  2,327  3,101  3,202  
Net (Balance) 
Current account, Services  507  1,163  1,307  1,445  841  701  726  1,591  1,577  
Branding, Quasi-transit adjustment          
Transportation  175  710  606  424  617  481  642  808  447  
Sea transport  119  723  671  546  673  498  636  815  467  
Air transport  59  28  39  -10  40  53  69  48  37  
Other transport  -5  -37  -105  -112  -94  -71  -63  -53  -57  
Travel  -97  -56  51  388  41  -62  -36  63  36  
Other services  425  510  654  628  186  280  124  718  1,091  
Communications services  2  2  6  4  30  21  -0  19  7  
Construction services  66  57  42  80  28  46  37  48  62  
Insurance services  76  52  85  84  58  106  -399  -21  150  
Financial services  25  24  32  35  35  71  155  116  108  
Computer and information services  14  4  28  75  74  72  116  119  118  
Royalties and license fees  9  44  38  39  50  72  83  107  134  
Other business services  244  359  452  340  -60  -93  136  333  514  
Personal, cultural and recreational 
services  -1  -3  0  -5  -4  19  -1  -2  3  
Government services, n.i.e.  -12  -30  -30  -24  -25  -32  -4  -1  -4  
Services not allocated  4  -1  -2  3  -5  -3  -4  -2  -0  
Commercial services a)  518  1,193  1,337  1,469  866  733  729  1,593  1,581  
a) Services excluding Gove rnment servic es, n.i.e.  
 Source:  Eurostat (BOP_ITS_DET) 14 February 2014.   Prepared by DG Trade (EU Commission) - Chief Economist Unit – Statistics sector. 
 
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