WT/REG387/1  
11 January 2019  
(19-0182) Page: 1/36 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN CHILE AND THAILAND  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement  between Chile 
and Thailand , has been drawn up by the WTO Secretariat on its own responsibility and 
in full consultation with the Parties. The factual presentation reproduces as closely as 
possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement or accept ance by the Secretariat of such 
terminology. The report has been drawn up in accordance with the rules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade Agreements 
(WT/L/671) and thus does not imply any value judgemen t by the Secretariat regarding 
the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Jo-Ann Crawford  
(tel: +41 22 739 5422). Any statistical questions arising from this report may be 
addressed to Thakur Parajul i (tel: +41 22 739 5473). 
 
 
  WT/REG387/1  
 
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  TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMEN T ................................ ................................ ................................  4 
1.1   Merchandise trade  ................................ ................................ ................................ ...... 4 
1.2   Trade in services and investment  ................................ ................................ .................  6 
2   CHARACTERISTIC E LEMENTS OF THE AGREE MENT  ................................ .....................  8 
2.1   Background Information  ................................ ................................ ..............................  8 
3   PROVISIONS ON TR ADE IN GOODS  ................................ ................................ ............  9 
3.1   Import duties and charges, and quantitative restrictions ................................ ..................  9 
3.1.1    General provisions  ................................ ................................ ................................ . 10 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ....... 10 
3.1.3    Liberalization schedule by product  ................................ ................................ ...........  11 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ ... 13 
3.2   Rules of origin  ................................ ................................ ................................ ..........  13 
3.3   Export duties and charges, and quantitative restrictions  ................................ ................  13 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ...... 14 
3.4.1    Standards  ................................ ................................ ................................ .............  14 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ .... 14 
3.4.1.2    Technical barriers to trade  ................................ ................................ ...................  14 
3.4.2    Safeguard mechanisms  ................................ ................................ ..........................  14 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  14 
3.4.2.2    Bilateral safeguards  ................................ ................................ .............................  15 
3.4.3    Anti-dumping and countervailing measures  ................................ ...............................  15 
3.4.4    Subsidies and State -aid ................................ ................................ ..........................  15 
3.4.5    Customs-related procedures ................................ ................................ ....................  15 
4   PROVISIONS ON TR ADE IN SERVICES  ................................ ................................ ...... 16 
4.1   Scope and definitions  ................................ ................................ ................................  16 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 16 
4.3   General provisions on trade in services  ................................ ................................ ....... 16 
4.3.1    Market access  ................................ ................................ ................................ ....... 16 
4.3.2    National treatment and  MFN ................................ ................................ ....................  16 
4.3.3    Commercial presence  ................................ ................................ .............................  17 
4.3.4    Movement of natural persons  ................................ ................................ ..................  17 
4.4   Liberalization commitments  ................................ ................................ .......................  17 
4.4.1    Chile ................................ ................................ ................................ ....................  17 
4.4.1.1    Horizontal Commitments  ................................ ................................ ......................  17 
4.4.1.2    Sector -specific Commitments  ................................ ................................ ...............  17 
4.4.2    Thailand  ................................ ................................ ................................ ...............  20 
4.4.2.1    Horizontal commitments  ................................ ................................ ......................  20 
4.4.2.2    Sector -specific commitments  ................................ ................................ ................  20 
4.5   Regulatory provisions  ................................ ................................ ................................  23 WT/REG387/1  
 
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  4.5.1    Domestic regulation  ................................ ................................ ...............................  23 
4.5.2    Recognition  ................................ ................................ ................................ ...........  23 
4.5.3    Subsidies  ................................ ................................ ................................ ..............  23 
4.5.4    Safeguards  ................................ ................................ ................................ ...........  23 
4.5.5    Investment  ................................ ................................ ................................ ...........  23 
4.6   Sector specific provisions on trade in services  ................................ ..............................  24 
4.6.1    Financial Services  ................................ ................................ ................................ .. 24 
5   GENERAL PROVISIO NS OF THE AGREEMENT  ................................ ............................  24 
5.1   Transparency  ................................ ................................ ................................ ...........  24 
5.2   Current payments and capital movements  ................................ ................................ ... 25 
5.3   Exceptions  ................................ ................................ ................................ ...............  25 
5.3.1    General exceptions  ................................ ................................ ................................  25 
5.3.2    Security exceptions  ................................ ................................ ................................  25 
5.3.3    Taxation  ................................ ................................ ................................ ...............  25 
5.3.4    Confidentiality and Disclosure of Information ................................ .............................  25 
5.4   Accession and Withdrawal ................................ ................................ ..........................  25 
5.5   Institutional framework  ................................ ................................ .............................  25 
5.6   Dispute settlement  ................................ ................................ ................................ ... 26 
5.7   Relationship with other agreements concluded by the Parties  ................................ .........  26 
5.8   Government procurement  ................................ ................................ ..........................  28 
5.9   Intellectual property rights  ................................ ................................ ........................  28 
5.10   Labour  ................................ ................................ ................................ ..................  28 
5.11   Environment  ................................ ................................ ................................ ..........  28 
5.12   Electronic Commerce  ................................ ................................ ...............................  29 
5.13   Economic Cooperation  ................................ ................................ .............................  29 
ANNEX 1  ................................ ................................ ................................ .......................  30 
ANNEX 2  ................................ ................................ ................................ .......................  36 
 
  WT/REG387/1  
 
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  Key Facts  
 
Parties to the Agreement:  Chile and Thailand  
 
Date of Signature:    4 October 2013 
 
Date of Entry into Force:  5 November  2015  
 
Date of Notification:   12 September  2017 
 
Full implementation:   1 January 2023  
 
 
 
1  TRADE ENVIRONMENT  
1.1.  As of January 2018 Chile has notified its membership in a total of 27 RTAs to the WTO, while 
Thailand has notified a total of 13.  
1.2.  In 2016, Chile's GDP was estimated at US$247 billion , while that of Thailand was 
US$407 billion . Averaged over the period 2014 -2016, the Parties' trade (goods and services) to GDP 
ratios were 30.1 for Chile and 63.6  for Thailand.1 
1.1  Merchandise trade  
1.3.  In 201 6, Chile's merchandise exports amounted to US$ 60 billion ( 0.38% of global exports) and 
imports to US$59 billion ( 0.36% of global imports). In the same year, Thailand 's merchandise 
exports amounted to US$ 215 billion ( 1.35% of global exports) and imports to US$ 195 billion ( 1.2% 
of global imports). For Chile, fuels and agricultural products are the main commodity groups 
exported (54% and 31.1% of total exports) while manufactures accou nt for 74.7% of its total 
imports. For Thailand, manufactures and agricultural products are the main commodity groups 
exported (74.6% and 17% of its total exports), while manufactured products account for 69.6% of 
its total imports.  
1.4.  Chart 1.1  summarizes th e trends in global and bilateral trade of the Parties.  For most of the 
period the trade of Chile and Thailand with global partners has been more or less in balance . Trade 
increased significantly over the period until the 2008 -2009 financial and economic cr ises, but has 
since recovered. In bilateral trade , Thailand  has run a trade surplus with Chile in most years  
throughout the period (2000 -2016). Since 2010 Thailand's exports to Chile are more than double its 
imports  in most years . 
1.5.  Based on 201 6 trade data,  Thailand  was Chi le's 15th source of imports (representing 1.1% of 
Chile's total imports) and its 20th destination for exports (representing 0.5% of Chi le's total exports). 
Chile was Thailand's  33rd source of imports (representing 0.2% of Thailand's total imports ) and its 
34th destination for exports (representing 0.3% of Thailand's total  exports).  
                                                
1 Source: WTO Trade Profiles, September 2016.  WT/REG387/1  
 
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  Chart 1.1 Chile - Thailand:  Merchandise bilateral trade and with world (2000 -2016)  
 
Source:  UNSD Comtrade database . 
 
1.6.  The commodity structure of trade between C hile and Thailand , as well as of their glob al trade 
in the period 2014 -2016, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. 
Animal products and base metals  accounted for more than  half of Thailand's  imports from C hile 
(respective ly corresponding to 30% and 23 % of Thailand's  imports from C hile). Thailand's  largest 
import categories globally are machinery and minerals (respectively 32% and 17 %), while base 
metals account for 12% . The two commodities most imported by C hile from Thailand  were vehicles 
and machinery  (representing respectively 68% and 13 % of C hile's imports from Thailand ). Chile's 
largest imports globally  were machinery and minerals  (respectively 23% and 18%). 
0.00.10.20.30.40.50.60.70.80.91.0
050100150200250300
2000 2002 2004 2006 2008 2010 2012 2014 2016B. Thailand 2000 -2016
(US$ Billions)
Imports from Chile (Right Axis)
Export to Chile (Right Axis)
Total Imports
Total Exports
0.00.10.20.30.40.50.60.70.80.91.0
050100150200250300
2000 2002 2004 2006 2008 2010 2012 2014 2016A. Chile 2000 -2016 
(US$ Billions)
Imports from Thailand (Right Axis)
Export to Thailand (Right Axis)
Total Imports
Total ExportsWT/REG387/1  
 
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  Chart 1.2 Chile -Thailand:  Product composition of merchandise trade, annual average 
(2014 -2016)  
 
 
1.2  Trade in services and investment  
1.7.  In 201 6, Chile's shares of global  commercial services exports and imports were 0.2% an d 
0.28% respectively, while  Thailand's  share was 1.38% of world exports and 0.89% of world imports 
of services. With total commercial services exports of US$ 9.6 billion, and imports o f US$ 13.1 billion, 
Chile was the world's 38th largest exporter and 32nd largest importer of commercial servi ces. Thailand  
was the 11th largest exporter (US$ 66 billion) and 18th largest importer (US$ 41.9 billion).2 
1.8.  Charts 1.3 and 1.4 show global trade in commercial services for  Chile and Thailand  (based on 
the period 2005 -2016). For Chile, the available data show an overall deficit in trade in commercial 
services with the world , while for Thailand its trade deficit turned to a surplus in 2012 and has 
remained so since . In the case of Chi le, transport , travel  and other business services represent the 
three mainly traded services, in terms of both exports and imports. These three categories also 
represent the three mainly traded services for Thailand . 
                                                
2 WTO Trade Profiles, (September 2016).  
6913742
6Chile's imports from Thailand (%)
23
18
1496664222225Chile's Global Imports (%)
29
26 1096544225Chile's Global Exports (%)
30
23151284422Thailand's imports from Chile (%)
32
17
128654322224Thailand's Global Imports (%)
31
13
12855554336Thailand's Global Exports (%)Total: US$ 732 million Total: US$ 64,718 million
Total: US$ 208,555 million Total: US$ 217,350 millionTotal:  US$ 65,963 million
Total: US$ 318 million
WT/REG387/1  
 
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  Chart 1.3 Chile: Trade in commerc ial services with world, 2005 -2016  
 
Note:  No data recorded under the services category - Manufacturing services on physical inputs owned by 
others; Maintenance and repair services n.i.e.; and Construction.  
 Data for the year 2016 is WTO's estimate.  
Source:  WTO Statistics database based on BPM6.  
Chart 1.4 Thailand:  Trade in commercial services with world, 2005 -2016  
 
Note: No data recorded under the services category - Manufacturing services on physical in puts owned by 
others; Maintenance and repair services n.i.e.; and Construction.  
 Data for the year 2016 is WTO's estimate.  
Source:  WTO Statistics database based on BPM6.  
 
1.9.  Charts 1.5 and 1.6 depict the Parties'  foreign direct investment stocks and flows with the world 
during 200 5-2016. Inward FDI stocks have grown steadily for both Parties. Both countries have been 
net recipient s of FDI stock throughout the period . Chile is a net recipient of FDI inward flows. In the 
case of  Thailand both inward and outward FDI flows have fluctuated over the period. In 2016 
Thailand's FDI flows turned sharply negative.  
05101520
2005 2007 2009 2011 2013 2015A. Chile imports from world
2005 -2016
(US$ Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Maintenance and repair services n.i.e.
Manufacturing services on physical inputs owned by others02468101214161820
2005 2007 2009 2011 2013 2015B. Chile exports to world
2005 -2016
(US$ Billion)
010203040506070
2005 2007 2009 2011 2013 2015A. Thailand imports from world
2005 -2016
(US$ Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Maintenance and repair services n.i.e.
Manufacturing services on physical inputs owned by others010203040506070
2005 2007 2009 2011 2013 2015B. Thailand exports to world
2005 -2016
(US$ Billion)WT/REG387/1  
 
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  Chart 1.5 Chile: FDI stock and flow with world, 2005 -2016
 
Sourc e: UNCTAD . 
 
Chart 1.6 Thailand: FDI stock and flow with world, 2005 -2016  
 
 
Source:  UNCTAD . 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Free Trade Agreement (hereinafter "the Agreement") between Chile and Thailand was 
signed on 4 October 2013  and entered into force on 5 November  2015. The Parties notified the 
goods and services aspects of the Agreement to the WTO on 1 2 September  2017, in document 
050100150200250300
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Chile FDI stock with world
2005 -2016
(US$ Billion ) 
Inward Outward
051015202530
2005 2007 2009 2011 2013 2015Chile FDI flow with world
2005 -2016
(US$ Billion) 
Inward Outward
050100150200250
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Thailand FDI stock with world
2005 -2016
(US$ Billion ) 
Inward Outward
024681012141618
2005 2007 2009 2011 2013 2015Thailand FDI flow with world
2005 -2016
(US$ Billion) 
Inward OutwardWT/REG387/1  
 
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  WT/REG3 87/N/1 - S/C/N/8 95. The notification was made pursuant to Article XXIV:7(a) of GATT  1994 
for goods, and to Article V:7(a) of GATS for services. The text of the Agreement, together with its 
Annexes, is available on the Parties' official w ebsites:  
Chile:   http://www.direcon.gob.cl/detalle -de-acuerdos/?idacuerdo=22640  
Thailand:   http://www.dft.go.th/th -th/DFT -Service/ServiceData -Information/dft -service -data-
 privilege/Deta il-dft-service -data-privilege/ArticleId/5082/5082  
 
2.2.  The Agreement is composed of 16 Chapters and a number of annexes.  
Box 2.1 Structure of the Agreement  
Preamble   
Chapter 1  Initial Provisions  
Chapter  2 General Definitions  
Chapter 3  Trade in Goods  
Chapter 4  Rules of Origin  
Chapter 5  Customs Procedures  
Chapter 6  Sanitary and Phytosanitary Measures  
Chapter 7  Technical Barriers to Trade  
Chapter 8  Trade Remedies  
Chapter 9  Trade in  Services  
Chapter 10  Trade in Financial Services  
Chapter 11  Economic Cooperation  
Chapter 12  Transparency  
Chapter 13  Administration and Institutional Provisions  
Chapter 14  Dispute Settlement  
Chapter 15  Exceptions  
Chapter 16  Final Provisions  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.  Chapter 3 of the Agreement covers trade in goods. The Parties agree to accord national 
treatment to each other's  goods in accordance with Article III of GATT 1994 and its interpretative 
notes which are incorporated into the Agreement, mutatis mutandis (Article 3.3). 
3.2.  The Parties shall ensure that all fees, charges, formalities and requirements imposed in 
connection w ith imports or exports are consistent with their obligations under GATT 1994. They 
agree to make available a current list of fees and charges on the internet (Article  3.5). 
3.3.  Chile may maintain its price band system provided it is applied consistent with its  rights and 
obligations under the WTO  and shall not incorporate any new products in it (Article 3.6) .3  
3.4.  The Parties may not adopt or maintain any prohibition or restriction on the import of any good 
destined for the other Party except in in accordance with  its WTO rights and obligations or the 
Agreement. Article XI of the GATT and its interpretative notes are incorporated into the Agreement, 
                                                
3 The products covered by the price band system are HS (2007) 1001.9000, 1101.0000, 1701.1100, 
1701.1200, 1701.9100, 1701.9910, 1701.9920 and 1701.9990. Once tariff liberalization on these products is 
complete the price band mechanism no longer applies.  WT/REG387/1  
 
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  mutatis mutandis. The Parties shall ensure the transparency of its non -tariff measures and ensure 
that any such measu res are not prepared, adopted or applied with a view to creating unnecessary 
obstacles to trade (Article 3.8).  
3.1.1   General provisions  
3.1.2   Liberalization of trade and tariff lines  
3.5.  The Parties shall eliminate all customs duties on originating goods of the other Party except as 
otherwise provided in the Agreement and subject to a Party's Schedule as set out in Annex 3.4 
(Article 3.4). Neither Party shall increase any existing customs duty or introduce a new customs duty 
on originating goods covered by the Agreemen t. If a Party reduces its applied MFN rate on any 
product after the Agreement's entry into force and before the end of the tariff reduction or 
elimination period, the Parties shall consult to consider adjusting such customs duties to be 
consistent with the  MFN rate reduction. The Parties shall consult upon request to consider 
accelerating the elimination of customs duties. A Party may at any time unilaterally accelerate the 
elimination of customs duties (Article 3.4).  
3.6.  Table 3.1 shows tariff and trade libera lization offered by Chi le under the Agreement.4 In 2015, 
0.4% of Chi le's tariff lines were duty free on an MFN basis, corresponding to zero % of its total 
imports from Thailand  in 2012 -2014. Following the Agreement's entry into force, it liberalized 90.6% 
of lines, representing 94.8% of its imports from Thailand  between 2012 and 2014. Liberalization 
continues until 20 23 at which time all imports from Thailand  will be duty free.  
Table 3.1 Chile  
Tariff eliminati on commitments under the Agreement and corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Chile's tariff 
schedule  Value of Chile 's 
imports from 
Thailand   
(201 2-2014)a 
US$ million  % of Chile 's total 
imports from  
Thailand  
(2012-2014) 
2015 (MFN)  35 0.4 0.0 0.0 
2015 7,055  90.6 720.0  94.8 
2018 275 3.5 36.4 4.8 
2020 273 3.5 3.3 0.4 
2023 147 1.9 0.0 0.0 
Remain dutiable  - - - - 
TOTAL  7,785  100.0  759.8  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Chile.  
 
3.7.  As shown in Table 3.2, 31% of Thailand's  tariff lines were duty free  on an MFN basis in 201 5, 
corresponding to 60.2% of its total imports from Chile in 201 2-2014.5 Following the Agreement's 
entry into force, it  liberalized an additional 57.1% of lines, representing 30.7% of its imports from 
Chile between 201 2 and 201 4. Liberalization continues until 20 23 at which point 98.9% of tariff 
lines, corresponding to 100% of imports from Chile will be duty free. A total of 105 lines will remain 
subject to duties.  
                                                
4 All 7,785 tariff lines in Chile's schedule are subject to ad valorem  duties.  
5 Of the 9,558  tariff lines in Thailand's  schedule, 92.5%  are subject to ad valorem  duties, 28 to specific 
duties, and 694 to mixed duties.  WT/REG387/1  
 
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  Table 3.2 Thailand  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Thailand's 
tariff 
schedule  Value of Thailand's 
imports from Chile  
(2012 -2014)a 
US$ million  % of Thailand's total 
imports from Chile  
(2012 -2014)  
2015 (MFN)  2,960  31.0 188.4  60.2 
2015 5,454  57.1 96.1 30.7 
2017 11 0.1 3.9 1.3 
2018 191 2.0 17.8 5.7 
2020 695 7.3 1.9 0.6 
2023 142 1.5 4.7 1.5 
Remain dutiable  105 1.1 0.0 0.0 
TOTAL  9,558  100.0  312.8  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based  on data provided by Thailand.  
 
3.1.3   Liberalization schedule  by product  
3.8.  Table 3.3 shows Chi le's tariff liberalization by HS Section. Most lines liberalized upon the 
Agreement's entry into force in 2015. Liberalization takes place at regular intervals until 20 23 when 
all lines are liberalized under the Agreement for imports from Thailand.  
Table 3.3 Chile: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the  
MFN 2015  Number of duty -free lines under the 
Agreement  Remain 
dutiable  
2015  2018  2020  2023  
I 6.0 742  709   33  
II 6.0 704  663  4 37  
III 6.0 68  68     
IV 6.0 464  433   31  
V 6.0 195  190 3 2   
VI 6.0 1,219   1,184  5 29 1  
VII 6.0 295  254 29 6 6  
VIII 6.0 74  74     
IX 6.0 137  137     
X 5.9 200 4 196     
XI 6.0 949  650 146 151 2  
XII 6.0 60  60     
XIII 6.0 166  132 23 11   
XIV 6.0 56  56     
XV 6.0 613  505 18 53 37  
XVI 6.0 1,042  2 998 31 11   
XVII 5.5 326 29 289 4 4   
XVIII 6.0 247  247     
XIX 6.0 21  21     
XX 6.0 200  182 16 2   
XXI 6.0 7  7     
Total  6.0 7,785  35 7,055  275 273 147 - 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Chile.  
 
3.9.  Table 3.4 shows Thailand's  tariff liberalization by HS section. Liberalization takes place at 
regular intervals until 20 23 with the bulk of lines upon the Agreement's entry into force in 2015 . The WT/REG387/1  
 
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  105 products remaining dutiable are agricultural products f alling in HS Sections I -IV (except for one 
line in HS Section XI) . The average final tariff on dutiable products ranges from 77.6% to 226. 
Table 3.4 Thailand: Tariff elimination under the Agreement, by HS Sect ion 
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2015  Number of duty -free lines under 
the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  
2015  2017  2018  2020  2023  
I 15.5 521 175 234  23 16 60 13 94.8 
II 31.8 474 50 323  41 9  51 77.6 
III 39.8 156 2 122  4 4  24 132.0  
IV 30.8 443 4 240 11 76 27 69 16 79.6 
V 2.2 204 151 53       
VI 3.7 1,157  713 417  13 14    
VII 7.7 480 60 376  4 40    
VIII 14.6 100 20 51  2 27    
IX 8.4 157 51 86  7 13    
X 4.5 269 105 146  3 15    
XI 14.6 1,079  36 823  9 210  1 226.0  
XII 23.6 74  41   33    
XIII 10.8 215 39 156   20    
XIV 7.9 81 49 32       
XV 6.3 909 261 600   48    
XVI 5.0 2,067  996 976  6 89    
XVII 35.6 565 70 412   70 13   
XVIII 4.1 329 174 152  1 2    
XIX 26.7 27 3 24       
XX 16.1 239  186  2 51    
XXI 18.3 12 1 4   7    
Total  12.4 9,558  2,960  5,454  11 191 695 142 105 93.9 
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of averages, 
specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Thailand.  
 
3.10.   The average remaining dutiable rates by HS Chapter applied by Thailand  to imports from Chi le 
at the end of the implementation period are shown in Chart 3 .1. In all HS Chapters the MFN duties 
match preferential duties , indicat ing that no preferential liberalization of these lines has occurred .  
Chart 3.1 Thailand: Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Thailand.  
050100150200250
04
07
08
09
10
12
15
17
21
22
23
50Average Duty Rate
HS Chapters Preferential
MFNHS 01 -24 HS 25 -97WT/REG387/1  
 
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  3.1.4   Tariff rate quotas  
3.11.   Tariff rate quotas offered by Thailand to Chile under the Agreement are described in Annex  2. 
3.2  Rules of origin  
3.12.   Chapter 4 contains provisions on rules of origin and origin implementation p rocedures and is 
supplemented by Annexes 4.2 (Product Specific Rules of Origin ) and 4.13 (Form of Certificate of 
Origin).  
3.13.   Except as otherwise provided in Chapter 4, a good qualifies as originating  in a Party  if it is:  
• wholly obtained or produced entirely  in a Party as specified in Article 4.3; 
• produced entirely in a Party, exclusively from originating materials  of the Parties ; or 
• produced entirely in a Party using non -originating materials and conforms to Annex 4.2; 
and meets the other applicable provisions of Chapter 4. 
3.14.   Annex 4.2 contains product specific rules of origin and the conditions that need to be fulfilled 
for products to qualify as originating. For most agricultural goods in HS Chapters 1 -14 a change in 
chapter  is required in the case of non -originating goods . For processed agricultural products, a 
change in chapter or heading is required; for a number of products there is the option of using a 
qualifying value content ( QVC) rule of 40% . In the case of industria l goods, a change in tariff 
classification (CTC) at the chapter, heading or subheading is the main criterion used to determine 
origin . For many products this is supplemented with the option of a QVC of 40% . In the case of 
chemicals, a change in tariff head ing, or QVC of 40% or a chemical reaction is the norm.  
3.15.   A de minimis  rule states that i f the value of all non -originating materials used in the production 
of a good that does not undergo a change in tariff classification do not exceed 10% of the FOB value 
of the good it shall be considered as originating  (Art 4.8) .  
3.16.   Chapter 4 also contains provisions on minimal operations and processes  that do not confer 
origin ; fungible goods and materials; accessories, spare parts, tools and instructional or information 
materials; treatment of packages, packing materials and containers; and direct consignment.  
3.17.   Cumulation of origin is governed by the provisions of Article 4.7. Originating goods or 
materials of a Party, incorporated into a good in the other Party, shall be c onsidered to be originating 
in the other Party.  
3.18.   Section 2 of Chapter 4, complemented by Annex 4.13 (Form of Certificate of Origin), contains 
disciplines on origin procedures, covering in particular: certificate of origin; application for  certificate 
of origin; obligations of the competent authority; treatment of erroneous declaration in the certificate 
of origin; issuance of the certificate of origin; loss of the certificate of origin; exceptions; treatment 
of minor discrepancies; claims f or preferential tariff treatment; verification of origin; verification 
visit; determination of origin and preferential tariff treatment; records and confidentiality; 
exhibition; sanctions against false declaration; obligations of importers and exporters; c ustoms duty 
refund; and non -party invoices.  
3.3  Export duties and charges, and quantitative restrictions  
3.19.   The Parties may not adopt or maintain any prohibition or restriction on the export of any good 
destined for the other Party except in in accordance with i ts WTO rights and obligations or the 
Agreement  (Article 3.8) . WT/REG387/1  
 
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  3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.20.   Chapter 6 of the Agreement governs SPS matters. Each Party reaffirms its rights and 
obligations under the SPS Agreement (Article 6.4). The Parties recognise the application of 
equivalence as an important tool for trade facilitation for their mutual benefit  (Article 6.6) . They also 
recognize the principle of risk assessment as provided for under the SPS Agreement  (Article 6.7) . 
The initiation of a risk assessment process should not interrupt the bilateral trade of that product, 
except in case of a justified emergency situation.  
3.21.   At the request of a Party for consultations on any SPS matter, the Parties shall enter into 
consultations within 30 days of receiving the notification unless otherwise agreed. If the 
consultations fail to achieve resolution the Parties  may make use of the Agreement's dispute 
settlement procedure in Chapter 14 of the Agreement (Article 6.8).  
3.22.   In the event of any inconsistency between a provision of Chapter 6 and a provision of the 
Agreement on Technical Cooperation on Sanitary and Phytosa nitary Measures between the Chile and 
Thailand of August 2012, Chapter 6 prevails.  
3.4.1.2   Technical barriers to trade  
3.23.   Chapter 7 covers TBT in accordance with the definitions of Annex 1 of the TBT Agreement. 
The objectives of the Chapter are to increase and facili tate trade through the improvement of the 
implementation of the TBT Agreement, the elimination of unnecessary technical barriers to trade 
and the enhancement of bilateral cooperation. The Chapter does not apply to purchasing 
specifications prepared by gove rnmental bodies for production or consumption requirements of such 
bodies (Article 7.3). The Parties affirm their rights and obligations under the TBT Agreement (Article 
7.4).  
3.24.   The Agreement establishes disciplines for the use of international standards (A rticle 7.6); 
provides that positive consideration be given to accepting as equivalent technical regulations of the 
other Party (Article 7.8); and recognize s that a broad range of mechanisms exist to facilitate the 
acceptance of the results of conformity as sessment procedures (Article 7.9). The Parties elaborate 
on transparency requirements (Article 7.10); and agree to strengthen technical cooperation on TBT 
(Article 7.11).  
3.25.   The Parties agree to give prompt and positive consideration to any request from the other 
Party for consultations on issues relating to the implementation of Chapter 7. If consultations are 
not successful, the Party concerned may refer the matter to the Committee on Technical Barriers to 
Trade.  Where the Parties have had recourse to consu ltations such consultations shall, on the 
agreement of the Parties, constitute consultations as under the Agreement's dispute settlement 
chapter (Article 7.13).  
3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.26.   Part I  of Chapter 8 covers general trade remedies includ ing the application of global 
safeguards.  
3.27.   Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards , or any amendment or provision that supplements or replaces them. No 
provision of the Agreement (exc ept that a bilateral safeguard may not be imposed on a product 
already subject to a WTO global safeguard), including its dispute settlement provisions shall be 
construed as imposing any rights and obligations on the Parties with respect to global safeguard  
measures  (Article 8.3) . WT/REG387/1  
 
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  3.4.2.2   Bilateral safeguards  
3.28.   Part II of Chapter 8 deals with bilateral safeguards. A  Party may apply a bilateral safeguard 
measure  consisting of either (i) a suspension of the further reduction of any rate of  customs duty 
on a good , or (ii ) an increase in the rate of customs duty on the good to a level not to exceed the 
lesser of the MFN applied rate of duty in effect on the day  the safeguard measure is taken , and the 
MFN rate  of duty in effect on the day immediately preceding the date of entry into force of the 
Agreement  (Article 8.5) . 
3.29.   A Party shall apply a safeguard measure only following an investigation by the Party's 
competent authorities in accordance with Articles 3 and 4.2(c) of the Safeguards Agreement. A 
bilateral safeguard measur e may be applied for such period of time as may be necessary to prevent 
or remedy serious injury and facilitate adjustment . A measure can be applied for up to two years 
with an extension of one year. Regardless of its duration or whether it has been subjec t to extension, 
a safeguard measure on a good shall terminate at the end of the transition period for such good. No 
new safeguard measure may be applied to a good after that date.  No safeguard measure shall be 
applied again t o a good previously subject to  a safeguard measure for a period of time equal to the 
duration of the previous safeguard measure , or one year, whichever is longer (Article 8.6).   
3.30.   A safeguard or provisional measure may not be applied to a good that is subject to a global 
safeguard measure  (Article 8.6) . 
3.31.   A provisional safeguard measure can be applied in critical circumstances with the duration of 
such a measure not exceeding 150 days (Article 8.8). Notification and consultation procedures are 
outlined in Article 8.9.  
3.32.   No later than 30 days after it applies a bilateral safeguard measure, a Party shall afford an 
opportunity for the other Party to consult with it regarding appropriate trade liberalizing 
compensation in the form of substantially equivalent concessions. If t he Parties are unable to agree 
on compensation, the exporting Party shall be free to suspend the application of substantially 
equivalent concessions to the trade of the Party applying the safeguard measure . The right of 
suspension shall not be exercised fo r the first two years that a safeguard measure is in effect, 
provided that the safeguard measure has been taken as a result of an absolute increase in imports 
and that such a measure conforms to Chapter 8  (Article 8.10) . 
3.4.3   Anti-dumping and countervailing mea sures  
3.33.   Part I of Chapter 8 covers general trade remedies including antidumping and countervailing 
measures.  
3.34.   Each Party retains its rights and obligations under the WTO Agreement (or any amendment 
or provision that supplements it) with regard to the applicat ion of antidumping and countervailing 
measures.  
3.4.4   Subsidies and State -aid 
3.35.   The Parties share the objective of the multilateral elimination of all forms of export subsidies 
for agricultural goods and agree to cooperate in an effort to achieve such an agreemen t and prevent 
their reintroduction in any form. Neither Party shall introduce or maintain all forms of export subsidy 
on any agricultural good destined for the territory of the other Party (Article 3.7).  
3.4.5   Customs -related procedures  
3.36.   Chapter 5 covers customs procedures  and facilitation. It aims at: (i) simplification and 
harmonization of customs procedures of the Parties; (ii) ensuring consistency, predictability and 
transparency in the application of customs law s and regulations; (iii) ensuring the efficient and 
expeditious release of goods; (iv) facilitating trade between the Parties; and (v) promoting  
cooperation between the customs authorities . 
3.37.   The Agreement makes provision for advance rulings (within 120 days after a request), and 
penalties and possibl e criminal sanctions in case of violations of customs laws (Article 5.16). Other WT/REG387/1  
 
- 16 - 
 
  provisions of Chapter 5 address risk management; temporary admission; use of automated system  
and paperless trading; review and appeal; publication and enquiry points; confidentia lity; penalties 
and sanctions; and customs cooperation and mutual assistance . 
3.38.   The determination of the value of goods by the Parties shall be made in accordance with the 
provisions of the WTO Customs Valuation Agreement  (Article 5.5) . 
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Chapter 9 contains disciplines on trade in services  and Chapter 10 cover s trade in  financial 
services .  
4.1  Scope and definitions  
4.2.  Trade in services covers GATS modes of supply 1 (cross -border), 2 (consumption abroad), 
3 (commercial presence) and 4 ( natural persons) (Article 9.1). Commercial presence means any 
type of business or professional establishment, including through  inter alia  the constitution, 
acquisition or maintenance of a juridical person6, as well as branch es or representative office s, within 
the territory of a Party for the purpose of supplying a service (Article  9.1). 
4.3.  The Agreement does not apply to: government procurement; subsidies or grants provided by 
a Party or a state enterprise, including government -supported loans, guarantees, a nd insurance; air 
services, including domestic and international air transportation services, whether scheduled or non -
schedules and related services, other than aircraft repair and maintenance services, the selling and 
marketing or air transport services,  computer reservation system services, specialty air services, 
airport operation services and ground handling services . Measures affecting natural persons seeking 
access to the employment market of a Party, or measures regarding citizenship, residence or 
employment on a permanent basis are not covered by the Agreement.  
4.4.  The Parties agree to review Chapter 9 three years after the entry into force of the Agreement 
or upon request of a Party (Article 9.12).  
4.2  Denial of benefits  
4.5.  A Party may deny the benefits of C hapter 9 to service suppliers of the other Party where the 
service is being supplied by a juridical person if it is : i) being supplied by a juridical person owned 
or controlled by persons of a non -Party and has no substantial business activities in the ter ritory of 
the other Party ; or ii) where the service is being supplied by a juridical person that is owned or 
controlled by persons of the denying Party and has no substantial business activities in the territory 
of the other Party  (Article 8.11). 
4.3  General p rovisions on trade in services  
4.3.1   Market access  
4.6.  A market access provision along the lines of Article XVI of the GATS provides that, where 
market access commitments are undertaken, six types of limitations cannot be maintained or 
adopted by the Parties, unless otherwise specified in their schedules (Arti cle 9.3). 
4.3.2   National treatment and MFN  
4.7.  In the sectors inscribed in its Schedule of Specific Commitments under the Agreement, a  Party 
shall accord to services and service suppliers of the other Party treatment no less favourable than it 
accords to its own lik e services and service suppliers. The Article mirrors Article XVII of the GATS  
(Article 9.4) . Chapter 9 does not contain provisions on MFN treatment  applicable to trade in services . 
                                                
6 A juridical person means any legal entity duly constituted or otherwise organised under applicable law, 
whether for profit, including governmentally -owned, including any corporation, trust, partnership, joint venture, 
sole proprietorship or association.  WT/REG387/1  
 
- 17 - 
 
  4.8.  Any modification or withdrawal of specific commitments on trade in service s shall be made in 
accordance with Article 16.2 of the Agreement. In negotiations for such modification or withdrawal, 
the Parties shall enter into negotiations with a view to reaching an agreement on any necessary 
compensatory adjustment.  
4.3.3   Commercial prese nce 
4.9.  Chapter 9 has no specific provision on commercial presence, per se . The limitations on 
commercial presence on the services sectors listed in the Parties' schedules of commitments are 
summarized in the section on liberalization commitments in this repor t. 
4.3.4   Movement of natural persons  
4.10.   There is no separate chapter on the movement of natural persons. Commitments on mode 4 
are included in the Parties' schedules of commitments.  
4.4  Liberalization commitments  
4.11.    The Parties' schedules of commitments are laid out in A nnex 9.6. The Annex follows a positive 
list approach whereby the obligations of market access (Article 9.3) and national treatment 
(Article  9.4) apply only to the sectors listed therein, subject to the limitations and conditions 
inscribed. Any additional c ommitments agreed between the Parties shall be inscribed in their 
Schedules (Article 9.5).  
4.4.1    Chile  
4.4.1.1   Horizontal Commitments  
4.12.   The "encaje" legislation (ley 18.840) and decreto ley 600 of 1974 which Chile has  scheduled 
as restrictions under  the Agreement are not listed in its GATS commitments.  The Agreement includes 
a restriction that does not appear in Chile's GATS schedule on the right to adopt measures 
establishing rights or preferences to original ethnic groups .  
4.13.   Chile has improved its c ommitments regarding the movement of natural persons by 
liberalizing  the requirement that companies established in Chile employ at least 85% of Chilean staff 
for companies employing over 15 persons in the GATS to 25 under the Agreement.  There is no 
similar  threshold for professional services.  Finally Chile has added two new categories to its mode 4 
commitments: natural persons seeking temporary entry for the purpose of participating in business 
meetings, performing market or investment studies, generating b usiness contacts or participating 
in negotiations related to the supply of services in the future, including the setting up of a business 
or enter prise in the territory of Chile; and persons responsible for the setting up of the commercial 
presence of a se rvice provider in Chile.   
4.4.1.2   Sector -specific Commitments  
4.14.   In professional services Chile has improved its commitments compared to its  GATS 
commitments: the scope of advisory legal services that can be delivered by foreigners has been 
extended and full commitme nts are made in modes 1 and 2 which are unbound under GATS. A new 
commitment has been made in arbitration and mediation/conciliation services but subject to certain 
restrictions. Commitments for advisory and pre -design architectural services and architectu ral 
design services have been liberalized for modes 1 and 2 unlike the GATS where they are unbound. 
In engineering services two new subsectors – advisory and consultative engineering and integrated 
engineering services  - have been added in the Agreement an d the commitments in other engineering 
subsectors are improved through the liberalization of modes 1 and 2.  Likewise commitments in 
several subsectors of management consulting services are improved through the liberalization of 
modes 1 and 2. Chile has mad e new commitments in computer and related services, research and 
development services, real estate services, other business services, and services incidental to 
manufactures. In leasing services (without operator), Chile has liberalized mode 3 for those 
subsectors already present in its GATS schedule with the exception of leasing or rental services 
concerning private cars which is in its GATS schedule but not in the Agreement.  WT/REG387/1  
 
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  4.15.   In communications services Chile has added new commitments in value added service s: voice 
mail, electronic data interchange and code and p rotocol conversion . Other communications services 
remain unchanged. Chile has made no commitments in courier or audiovisual services.  
4.16.   In contrast to the GATS in which it has made no commitments in di stribution services, Chile 
has made full commitments in modes 1 -3 of wholesale trade services, retailing services of products 
manufactured under its own brand , and franchising.  
4.17.   In construction and related engineering services, education services, environm ental services, 
and health -related and social services Chile has made no commitments either in the GATS or under 
the Agreement.  
4.18.   In financial services, under core banking services Chile has added new subsectors such as the 
issuance and operation of debit ca rds, travellers' cheques, bank drafts, exchange market operations 
and operations with derivatives authorized by the Central Bank, and acceptance and execution of 
fiduciary operations. Under complimentary banking services Chile has added commitments in 
factoring, management of funds of third parties and intermediation of publicly offered securities. In 
insurance services, Chile has added new commitments for the administration of voluntary pension 
savings plans, claim settlement services and auxiliary insuran ce services. In securities services Chile 
has added new commitments in operations in stock exchange derivatives, trading in metals on the 
stock exchange (gold and silver only), management of funds of third parties, management of 
voluntary pension savings p lans and service of clearing houses for derivatives.  
4.19.   In tourism and travel -related services Chile has liberalized mode 1 for a number of subsectors 
which were unbound for mode 1 under GATS. In sporting and other recreational services, a sector 
for which Ch ile has no GATS commitments, it has made a commitment for sporting and other 
recreational services including kick boxing.  
4.20.   In air transport services commitments have been improved in four subsectors: selling and 
marketing of air transport services; aircraft repair and maintenance; computer reservation services; 
and ground handling. A new subsector – specialty air services – has been added. A new commitment 
in road transport services – maintenance and repair of road transport equipment – has been added.  
Table 4.1 Chile: Sector -specific liberalization under the Agreement at national level, 
excluding mode 4 and horizontal limitations  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA 
Compared to the GATS, 
sectoral commitments 
in the FTA are:  
1. Business se rvices  partial  improved  
A. Professional  Services  partial  improved  
B. Computer  and Related  Services  - improved  
C. Research  and Development  Services  - improved  
D. Real  Estate  Services  - improved  
E. Rental/Leasing  Services  without  Operators  partial  improved  
F. Other  Business  Services  partial  improved  
2. Communication services  partial  improved  
A. Postal  services  - - 
B. Courier  services  - - 
C. Telecommunication  services  partial  improved  
D. Audiovisual  services  - - 
E. Other  - - 
3. Construction and related engineering services  - - 
A. General  construction  work for buildings  - - 
B. General  construction  work for civil Engineering  - - 
C. Installation  and assembly  work  - - 
D. Building  completion  and finishing  work  - - 
E. Other  - - WT/REG387/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA 
Compared to the GATS, 
sectoral commitments 
in the FTA are:  
4. Distribution services  - improved  
A. Commission  agents'  services  - - 
B. Wholesale  trade services  - improved  
C. Retailing  services  - improved  
D. Franchising  - improved  
E. Other  - - 
5. Education services  - - 
A. Primary education services  - - 
B. Secondary education services  - - 
C. Higher education services  - - 
D. Adult education  - - 
E. Other education services  - - 
6. Environmental services  - - 
A. Sewage services  - - 
B. Refuse disposal services  - - 
C. Sanitation and similar services  - - 
D. Other  - - 
7. Financial services  partial  improved  
A. All insurance  and insurance -related  services  partial  improved  
B. Banking  and other  financial  services  partial  improved  
C. Other  partial  improved  
8. Health related and social services  - - 
A. Hospital services  - - 
B. Other Human Health Services  - - 
C. Social Services  - - 
D. Other  - - 
9. Tourism and travel related services  partial  improved  
A. Hotels  and restaurants (including catering)  partial  improved  
B. Travel  agencies  and tour operators  services  partial  improved  
C. Tourist  guides  services  partial  same  
D. Other  - - 
10. Recreational and cultural and sporting services  - improved  
A. Entertainment  services  - - 
B. News agency services  - - 
C. Libraries, archives, museums and other cultural services  - - 
D. Sporting and other recreational services  - improved  
E. Other  - - 
11. Transport services  partial  improved  
A. Maritime Transport Services  - - 
B. Internal Waterways Transport  - - 
C. Air Transport  Services  partial  improved  
D. Space  Transport  - - 
E. Rail  Transport  Services  - - 
F. Road  Transport  Services  - improved  
G. Pipeline  Transport  - - 
H. Services  auxiliary  to all modes  of transport  - - 
I. Other  Transport  Services  - - 
12. Other services  - - 
Note:  "-" indicate s no commitments . 
Source:  WTO Secretariat.  WT/REG387/1  
 
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  4.4.2   Thailand  
4.4.2.1   Horizontal commitments  
4.21.   In its horizontal commitments under the Agreement Thailand has raised the foreign equity 
ceiling from 49% of registered capital to 70% with an obligation to operate through a joint venture 
with a juridical person of Thai nationality. The requirement in Tha iland's GATS schedule that the 
number of foreign shareholders be less than half of the total number of shareholders of the company 
has been removed in the Agreement. Horizontal restrictions on national treatment under the 
Agreement (unbound under the GATS)  include meeting requirements stipulated on regulations 
regarding foreign investment and obtaining a licence or certificate. Measures pertaining to subsidies 
or privileges, minimum capital requirements, acquisition and usage of land, taxation measures and 
nationality requirements are unbound under the Agreement.  
4.22.   Under the Agreement, the board of directors including administrative and executive positions 
or alike in the legal entity must be of Thai nationality and have permanent domicile in Thailand. The 
person or the representative of the juridical person who applies for a licence must be of Thai 
nationality.  
4.23.   Thailand has made commitments on mode 4 for business visitors (extending the initial period 
of 90 days for a further year compared to GATS); and intra -corporate transferees (where temporary 
stay is limited to a one year period that may be extended for a further three terms – compared to 
two in GATS – of no more than one year each.  
4.4.2.2   Sector -specific commitments  
4.24.   Thailand has scheduled its sector -specific co mmitments using CPC 1.1 version.7 In its GATS 
schedule under professional services Thailand has scheduled commitments in modes 2 and 3 in legal 
services; accounting, auditing and bookkeeping services; architectural services; engineering 
services; and urban  planning and landscape architectural services, whereas under the Agreement 
its commitments are in modes 1 -3 of legal advisory for drafting of documents concerning only 
international commercial law excluding local laws and regulations; engineering advisory  and pre -
design services for traffic control systems; integrated engineering services; urban planning services; 
and weather forecasting and meteorological services.  
4.25.   In computer and related services, Thailand has made full commitments in modes 1 -3 
compared to the GATS where mode 1 is unbound and mode 3 is subject to an equity ceiling of 49%. 
Thailand has made full commitments in modes 1 -3 of research and development services, a sector 
not subject to commitments in its GATS schedule.   
4.26.   In rental and leasing se rvices without operator, Thailand has made commitments under the 
Agreement in modes 1 -3 in leasing or rental services concerning non -Thai flag vessels without 
operator; leasing or rental services concerning space transport; computer services; and rental or  
leasing services concerning furniture, whereas in the GATS its commitments are in rental and leasing 
services concerning agricultural machinery, construction machinery, office machinery, and other 
machinery and equipment without operator.  
4.27.   Thailand's comm itments in other business services differ from those in its GATS schedule. 
New commitments in the Agreement include human resource management consulting services; 
services incidental to energy distribution; related scientific and technical consulting servi ces; repair 
services of medical, precision and optical instruments; photographic series; and convention services. 
On the other hand some sectors subject to commitments in GATS are not included in the Agreement. 
These are services incidental to agriculture;  services incidental to forestry; services incidental to 
mining at oil and gas fields; publishing and printing services excluding publishing newspapers; and 
translation and interpretation services.  
4.28.   In telecommunications services Thailand has added new sub sectors not present in its GATS 
schedule. These are mobile telephone services, paging services, electronic mail, voicemail, 
                                                
7 This complicates the comparison with Thailand's GATS schedule which uses the Services Sectoral 
Classification List in MTN.GNS/W/120.  WT/REG387/1  
 
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  telecommunications terminal equipment leasing services and dedicated network services.  In 
audiovisual services Thailand's commitment s under the Agreement (on video tape production 
services for scientific education, production of sound recording for higher education in university 
only, and communication equipment maintenance services on a fee or contract basis) differ from 
those in the GATS (on film/video production and distribution services excluding promotion or 
advertising services and radio/television services only for production of radio/TV programmes).  
4.29.   In construction services Thailand has added commitments in modes 2 -3 in glazing services 
and two subsectors of other construction services.  In distribution services Thailand has added partial 
commitments in wholesale trade and retailing services, subsectors which are not subject to 
commitments under GATS, whereas in commission agents'  services the scope of the commitment 
under the Agreement is less than under GATS.  In education services Thailand has made 
commitments in science and technology faculty of higher education services under the Agreement, 
whereas its commitments in the GATS a re broader and cover primary and secondary education (for 
international and national school education services), and technical and vocational education 
services.  
4.30.   In environmental services Thailand has scheduled a number of services in GATS that do not 
appear in the Agreement. These include environmental consultancy on sewage system, refuse 
disposal, hazardous waste management, air pollution and noise management, sanitation and other 
environmental management services; cleaning services of exhaust gases; nois e abatement services; 
nature and landscape protection services; and other environmental protection services. One new 
subsector – marine environmental protection services – is added under the Agreement.  
4.31.   In financial services  Thailand's commitments in insura nce and insurance -related services 
mirror those in the GATS. In banking and other financial services Thailand's commitments in the 
Agreement are similar to those in the GATS. Differences arise in the treatment of securities 
companies where Thailand has add ed commitments under the Agreement in derivatives brokerage 
and dealing, securities borrowing and lending, and trading for own account or for account for 
customers in derivative products and transferable securities. In addition the scope of commitments 
made for asset management companies has increased.  
4.32.   In health related and social services, a sector where Thailand has no GATS commitments, 
Thailand has added a number of new commitments including in private hospital services, other 
human health services, soci al and other services. In tourism and travel -related services, a 
commitment in Thailand's GATS schedule for travel agency and tour operator services is not 
scheduled under the Agreement. In recreational, cultural and sporting services, Thailand has added 
new commitments in entertainment services, private library services and marina facilities. A 
commitment on sporting services, present in its GATS schedule, is not in the Agreement.  
4.33.   In maritime transport services Thailand has removed certain restrictions fou nd in its GATS 
schedule in passenger and freight transportation and added new commitments on maintenance and 
repair of vessels and supporting services for maritime transport. Commitments in its GATS schedule 
on international towing, shore reception facilit ies, port captain's services, marine surveys and freight 
forwarding services are not replicated in the Agreement. Thailand has added new commitments in 
space transport and removed the equity ceiling in rail transport services. Commitments on air 
transport,  road transport and auxiliary transport services that are scheduled in GATS are not in the 
Agreement.  
Table 4.2 Thailand: Sector -specific liberalization under the Agreement at national level, 
excluding mode 4  and horizontal limitations  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA 
Compared to the 
GATS, sectoral 
commitments in the 
FTA are:  
1. Business services  partial  improved  
A. Professional  Services  partial  improved  
B. Computer  and Related  Services  partial  improved  
C. Research  and Development  Services  - improved  
D. Real  Estate  Services  - - WT/REG387/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA 
Compared to the 
GATS, sectoral 
commitments in the 
FTA are:  
E. Rental/Leasing  Services  without  Operators  partial  partial  
F. Other  Business  Services  partial  partial  
2. Communication services  partial  improved  
A. Postal  services  - - 
B. Courier  services  - - 
C. Telecommunication  services  partial  improved  
D. Audiovisual  services  partial  partial  
E. Other  - improved  
3. Construction and related engineering services  partial  improved  
A. General  construction  work for buildings  partial  Improved  
B. General  construction  work for civil Engineering  partial  improved  
C. Installation  and assembly  work  partial  improved  
D. Building  completion  and finishing  work  - improved  
E. Other  - improved  
4. Distribution services  partial  improved  
A. Commission  agents'  services  partial  less 
B. Wholesale  trade services  - improved  
C. Retailing  services  - improved  
D. Franchising  - - 
E. Other  - - 
5. Education services  partial  less 
A. Primary education services  partial  - 
B. Secondary education services  partial  - 
C. Higher education services  - improved  
D. Adult education  - - 
E. Other education services  - - 
6. Environmental services  partial  less 
A. Sewage services  Partial  less 
B. Refuse disposal services  partial  less 
C. Sanitation and similar services  partial  less 
D. Other  partial  less 
7. Financial services    
A. All insurance  and insurance -related  services  partial  same  
B. Banking  and other  financial  services  partial  improved  
C. Other  - - 
8. Health related and social services  - improved  
A. Hospital services  - improved  
B. Other Human Health Services  - improved  
C. Social Services  - improved  
D. Other  - improved  
9. Tourism and travel related services  partial  improved  
A. Hotels  and restaurants (including catering)  partial  improved  
B. Travel  agencies  and tour operators  services  partial  less 
C. Tourist  guides  services  - - 
D. Other  partial  improved  
10. Recreational and cultural and sporting services  partial  improved  
A. Entertainment  services  - improved  
B. News agency services  - - 
C. Libraries, archives, museums and other cultural services  - improved  
D. Sporting and other recreational services  partial  less 
E. Other  - improved  WT/REG387/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA 
Compared to the 
GATS, sectoral 
commitments in the 
FTA are:  
11. Transport services  partial  partial  
A. Maritime Transport Services  partial  partial  
B. Internal Waterways Transport  - - 
C. Air  Transport  Services  partial  less 
D. Space  Transport  - improved  
E. Rail  Transport  Services  partial  improved  
F. Road  Transport  Services  partial  less 
G. Pipeline  Transport  - - 
H. Services  auxiliary  to all modes  of transport  partial  less 
I. Other  Transport  Services  - - 
12. Other services  - - 
Note:  "-" indicates no commitments .  
 Where commitments differ and it is unclear if access has improved the right hand column indicates 
"partial".  
Source:  WTO Secretariat.  
 
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.34.   Article 9.8 which governs  domestic regulation is modelled on Article VI of the GATS. The 
Parties agree to ensure that all measures of general application affecting trade in services are 
administered in a reasonable, objective and impartial manner. The Parties agree  to consult following 
the entry into force of  the results of the negotiations under Article VI.4 of the GATS and aim to 
incorporat e these into the Agreement (Article 9.8). 
4.5.2   Recognition  
4.35.   The Agreement's provisions on recognition echo those of Article VII of the GATS. In addition 
where a Party recognizes, autonomously or by agreement or arrangement, the education or 
experience obtained, requirements met, or licences or certifications granted in the territory of a non -
party, the Party is not obliged to accord such recognition to the other Party (Article 9.9). 
4.5.3   Subsidies  
4.36.   The Agreement contains no provisions on subsidies in trade in services.  
4.5.4   Safeguards  
4.37.   The Parties agree that upon the conclusion of multilateral negotiations pursuant to Article X 
of the GATS they shall conduct a review for the purpose of discussing appropriate amendments to 
the Agreement to incorporate the results of such negotiations (Article 9.10).  
4.5.5   Investment  
4.38.   No later than two years after the entry into force of the Agreement the Parties agree to initiate 
negotiations on investment (Article 16.4).8  
                                                
8 The Parties have indicated that contact points have been set up to facilitate a discussion on investment 
issues.  WT/REG387/1  
 
- 24 - 
 
  4.6  Sector specific provisions on trade in services  
4.6.1   Financial  Services  
4.39.    Chapter 10 applies to measures affecting trade in  financial services  in any of the four modes 
of supply . Chapter 10 does not apply to measures affecting: (i) activities conducted by a central 
bank or monetary authority or by any other public ent ity in pursuit of monetary or exchange rate 
policies; (ii) activities forming part of a statutory system of social security or public retirement plans; 
and (iii) other activities conducted by a public entity for the account of with the guarantee or using 
the financial resources of the Government. Nothing in Chapter 10 imposes any obligation with 
respect to government procurement or subsidies or grants.  
4.40.   A market access provision along the lines of Article XVI of the GATS provides that, where 
market access c ommitments are undertaken, six types of limitations cannot be maintained or 
adopted by the Parties with regard to financial services suppliers, unless otherwise specified in their 
schedules (Article 10.3). The Parties agree to accord national treatment in the sectors inscribed in 
its schedule of commitments contained in Annex II (Article  10.4).  
4.41.   The Parties commit to promoting regulatory transparency in financial services, including 
ensuring that measures of general application adopted or maintained by a Pa rty are promptly 
published or otherwise made publicly available . Any measure of general application that a Party 
proposes to adopt shall be provided to interested persons to the extent practicable to allow an 
opportunity for such persons to comment on the measure. Each Party's financial regulatory authority 
shall make available to interested persons its requirements for completing applications relating to 
the supply of financial services and shall inform applicants of the status of its applications. The 
Parties shall endeavour to implement and apply internationally agreed standards for regulation and 
supervision in the financial services sector (Article 10.6).  
4.42.   In sectors where specific commitments are undertaken, each Party shall permit a financial 
service s upplier of the other Party to transfer information in electronic or other forms, into and out 
of its territory, for data processing where such processing is required in the ordinary course of 
business (Article 10.7).  
4.43.   The Parties agree that nothing in Chapt er 10 requires a Party to disclose information relating 
to the financial affairs and accounts of individual customers or any confidential or proprietary 
information in the possession of public entities (Article 10.8). Article 10.9 contains a prudential carve 
out. 
4.44.   The Parties agree to recognize prudential measures of the other Party in determining how the 
Party's measures relating to financial services shall be applied (Article 10.10 ). Such recognition, 
achieved through harmonizatio n or otherwise, may be based upon an agreement or arrangement or 
may be accorded autonomously.  A Party that is party to such an agreement or arrangement with a 
third party shall afford adequate opportunity for the other Party to negotiate its accession to such 
agreement or arrangement or to negotiate comparable ones with it.  
4.45.   Consultations are foreseen between the Parties on any matter arising under the Agreement 
that affects financial services (Article 10.12 ). Panels for disputes on prudential issues and ot her 
financial matters shall have the necessary expertise in financial service s law or practice  
(Article  10.13 ). Any disputes under the Chapter on Financial Services shall be settled in accordance 
with the Agreement's provisions on dispute settlement (Artic le 10.13).  
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  Chapter 1 2 contains general transparency disciplines. Articles  12.2 through 12.6 list 
requirements on contact points; publication; notification and provision of information; administrative 
proceedings; and review and appeal.  WT/REG387/1  
 
- 25 - 
 
  5.2  Current payments and capital movements  
5.2.  Nothing in the Agreement shall prevent a Party from adopting or maintaining temporary 
safeguard measures with regard to trade in goods and services and with regard to payments and 
capital movements in the event of serious balance of payments or external financial difficulties or 
thereat thereof; or where, in exceptional circumstances, payments and capital movements cause or 
threaten to cause serious difficulties for the operation of monetary policy or exchange rate policy in 
either Party ( Article 15.4 ).  
5.3  Exceptions  
5.3.  Chapter 15 deals with exceptions.  
5.3.1   General exceptions  
5.4.  With respect to trade in goods (Chapters 3-7 of the Agreement), Article XX of GATT 1994, 
including its interpretive not es, is incorporated into and made part of the Agreement, 
mutatis  mutandis  (Article 15.1). With respect to the trade in services chapter, Article XIV of GATS, 
including its footnotes, is incorporated into and made part of the Agreement, mutatis mutandis  
(Article 15.1).  
5.3.2   Security exceptions  
5.5.  Security exceptions (Article 15.2) establish that nothing in the Agreement shall be interpreted 
as requiring a Party to disclose information contrary to its essential security interests, nor to prevent 
the adoption of measures necessary to protect a Party's essential security interests or to fulfil its 
obligations in accordance with the United Nations Charter on the maintenance of international peace 
and security . 
5.3.3   Taxation  
5.6.  Except as set out in Article 15.3, nothing in t he Agreement shall apply to taxation measures. 
Nothing in the Agreement shall affect the rights and obligations of either Party under any tax 
convention. In the event of any inconsistency relating to a taxation measure, the tax convention 
shall prevail to the extent of the inconsistency. A Party may adopt BOP measures with regard to 
both goods and services  in the event of serious balance of payments or external financial difficulties, 
or threat thereof (Article 15.4).  
5.3.4   Confidentiality and Disclosure of Infor mation  
5.7.  Exceptions relating to confidentiality and the disclosure of information (Article 1 5.5) provide 
that nothing under the Agreement requires a Party to furnish or allow access to confidential 
information whose disclosure could impede law enforcement, o r be contrary to the public interest or 
which would prejudice the legitimate commercial interests of public or private enterprises.  
5.4   Accession and Withdrawal  
5.8.  There are no provisions in the Agreement on accession. The Agreement may be terminated by 
either P arty by written notification to the other Party and shall expire 180  days after the date of 
notification (Article 16.5). 
5.5  Institutional framework  
5.9.  Chapter 13 contains administration and institutional provisions. The Parties establish a Free 
Trade Commission to oversee the implementation and further elaboration of the Agreement.  
5.10.   The Parties establish a Committee on Trade in Goods (Article 3.9); a Committee on Rules of 
Origin (Article 4.14); a Committee on Customs Procedures (Article 5.18); a Committee on Sanitary 
and Phytosanitary Measures  (Article 6.11) ; a Committee on Trade in Services (9.13); a Committee 
on Financial Services (Article 10.11); and a Committee on Cooperation (11.10) .  WT/REG387/1  
 
- 26 - 
 
  5.6  Dispute settlement  
5.11.   Chapter 14 governs dispute settlement for matters covered under the Agreement  and applied 
with respect to the settlement of all disputes regarding the implementation, interpretation or 
application of the Agreement or wherever a Party considers that: a measure of the other Party is 
inconsistent with its ob ligations under the Agreement; or the other Party has otherwise failed to 
carry out its obligations under the Agreement .  
5.12.   The Agreement provides for a choice of forum in cases where a dispute arises under the 
Agreement and under the WTO Agreement or any ot her agreement to which both Parties are party. 
Once the forum has been selected it shall be used to the exclusion of other fora (Article  14.2). The 
Parties agree to try to solve disputes through consultations. Should consultations fail to resolve a 
matter within 40 days of the delivery of the request (20 days in cases of urgency) , the complaining 
Party may refer the matter to the Commission by deliver ing a written request to the other Party  and 
request the establishment of a panel. The panel is comprised of  three panellists : each Party appoints 
one panellist and the Parties shall agree on a third.  
5.13.   Unless the Parties otherwise agree, a panel shall follow the rules of procedure set out in Annex 
14.10  of the Agreement, and may adopt additional rules of procedu res not inconsistent with that 
Annex (Article 14.10 ). The rules of procedure in Annex 14.10 address the operation of arbitral 
panels, hearings, confidentiality, role of experts and amicus curiae submissions.  
5.14.   An interim panel report will normally be issued within 120 days (60 days in cases of urgency 
(Article 14.12) . Each Party may provide  written comments on the interim report and the final report 
is expected to be presented within 30 days of the interim report, unless agreed otherwise. The 
Parties shall ma ke the final report available to the public within 15 days after the issuance of the 
final report, subject to the protection of confidential information, unless the Parties decide otherwise 
(Article 14.12 ). 
5.15.   If the panel determines that a Party is not in co nformity  with its obligations under the 
Agreement, it shall eliminate the non -conformity as determined in the report of the arbitral panel, 
immediately or within a reasonable period of time (Article 14.13) . In the event of non -compliance 
with the recommend ations of the panel within the reasonable period of time established, and no 
agreement is reached on compensation, the complaining Party may suspend the application of 
concessions or other obligations to the Party complained against (Article 14.14 ).  
5.7  Relat ionship with other agreements concluded by the Parties  
5.16.   The Parties confirm their existing rights and obligations with respect to each other under the 
WTO Agreement and other agreements to which they are party (Article 1. 3). 
5.17.   Other regional trade agreements to which Chile and Thailand are parties are listed in 
Table  5.1. 
Table 5.1 Chile  – Thailand:  Participation in other RTAs (notified and non -notified in 
force), as of 12 January  2018 
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
CHILE  
Southern Common Market 
(MERCOSUR) - Chile 10-Mar-17 Goods  2017 Enabling Clause  
Pacific Alliance  01-May-16 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Hong Kong, China - Chile 09-Oct-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Chile - Viet Nam  01-Jan-14 Goods  2015 GATT Art. XXIV  
Chile - Nicaragua (Chile - Central 
America)  19-Oct-12 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Chile - Malaysia  25-Feb-12 Goods  2013 GATT Art. XXIV  
Turkey - Chile 01-Mar-11 Goods  2011 GATT Art. XXIV  
Chile - Guatemala (Chile - Central 
America)  23-Mar-10 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  WT/REG387/1  
 
- 27 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Chile - Colombia  08-May-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Australia - Chile 06-Mar-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Peru - Chile 01-Mar-09 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Chile - Honduras (Chile - Central 
America)  19-Jul-08 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Panama - Chile 07-Mar-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
Chile - Japan  03-Sep-07 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
Chile - India 17-Aug-07 Goods  2009 Enabling Clause  
Chile - China  01-Oct-06 
01-Aug-10 Goods  
Services  2007 
2010 GATT Art. XXIV  
GATS Art. V 
Trans -Pacific Strategic Economic 
Partnership  28-May-06 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
EFTA - Chile 01-Dec-04 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
United States - Chile 01-Jan-04 Goods & Services  2003 GATT Art. XXIV & GATS Art. V  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV & GATS Art. V  
Chile - El Salvador (Chile - Central 
America)  01-Jun-02 Goods & Services  1905 GATT Art. XXIV & GATS Art. V  
Chile - Costa Rica (Chile - Central 
America)  15-Feb-02 Goods & Services  2002 GATT Art. XXIV & GATS Art. V  
Latin American Integration 
Association (LAIA) - Accession of 
Cuba 26-Aug-99 Goods  1999 Enabling Clause  
Chile - Mexico  01-Aug-99 Goods & Services  2001 GATT Art. XXIV & GATS Art. V  
Canada - Chile 05-Jul-97 Goods & Services  1997 GATT Art. XXIV & GATS Art. V  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Latin American Integration 
Association (LAIA)  - Accession of 
Panama  03-May-12 Goods  Not notified  
Chile - Ecuador [LAIA, AAP.CE 
N°65]  25-Jan-10 Goods & Services  Not notified  
Chile - Cuba [LAIA,AAP.CE N°42]  27-Jun-08 Goods  Not notified  
Chile - Venezuela [LAIA, AAP.CE 
N°23]  02-Apr-93 Goods & Services  Not notified  
Chile - Bolivia [LAIA, AAP.CE N°22]  06-Apr-93 Goods  Not notified  
Chile - Argentina [LAIA, AAP.CE 
N°16]  02-Aug-91 Goods  Not notified  
LAIA - Seeds [AAP.AG N°2]  Not 
provided  Goods  Not notified  
LAIA - Cultural Goods [LAIA 
AR.CEYC N°7]  Not 
provided  Goods  Not notified  
LAIA - Preferences in favour of 
Ecuador [LAIA, AR.AM N°2]  Not 
provided  Goods  Not notified  
LAIA- Preferences in favour of 
Paraguay [LAIA, AR.AM N°3]  Not 
provided  Goods  Not notified  
LAIA - Preferences in favour of 
Bolivia [LAIA, AR.AM N°1]  Not 
provided  Goods  Not notified  
THAILAND  
ASEAN - Australia - New Zealand  01-Jan-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
14-Oct-10 Goods  
Services  2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V  
ASEAN - Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
Japan - Thailand  01-Nov-07 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
Thailand - New Zealand  01-Jul-05 Goods & Services  2005 GATT Art. XXIV & GATS Art. V  WT/REG387/1  
 
- 28 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
Thailand - Australia  01-Jan-05 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
India - Thailand  01-Sep-04 Goods  2017 Enabling Clause  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1992 Enabling Clause  
Lao People's Democratic Republic - 
Thailand  20-Jun-91 Goods  1991 Enabling Clause  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Peru - Thailand  31-Dec-11 Goods  Not notified  
ASEAN Framework Agreement on 
Services (AFAS)  12-Aug-98 Services  Not notified  
Source:  WTO Secretariat.  
 
5.8  Government procurement  
5.18.   Chapter 11 on economic cooperation contains an Article on government procurement . The 
Parties recognize the importance of government procurement to their economies and shall 
endeavour to promote transparency, value for money, open and effective competition, fair dealing, 
accountability and due process and non -discrimination  in their government procurement procedures 
(Article 11.8). The Parties establish a Working Group on Government Procurement that shall report 
to the Commission on the outcomes of its discussions. Chile and Thailand are observers to the WTO 
Agreement on Gov ernment Procurement.  
5.19.   The provisions on government procurement are not subject to the Agreement's dispute 
settlement procedure.  
5.9  Intellectual property rights  
5.20.   Chapter 11 on economic cooperation contains an Article on geographical indications (GIs) . 
The Partie s agree to ensure protection of GIs with regard to any goods in accordance with their laws 
and regulations and in accordance with the WTO TRIPS Agreement (Article 11.9). Annex 11.9 
contains a list of GIs of Chile and Thailand within the meaning of Article 22.1 of the TRIPS Agreement. 
For Chile this list contains wines, spirits, agricultural and marine goods. For Thailand it contains rice, 
vegetables and fruit, food, wine, silk and fabric and handicrafts. At the request of a Party the 
Commission may decide t o add or remove GIs from Annex 11.9.  
5.21.   The Agreement's dispute settlement procedure applies to the  provisions on geographical 
indications.  
5.10  Labour  
5.22.   Chapter 11 on economic cooperation contains an Article on labour  issues.  The Parties agree 
to cooperate on labour and employment -related matters in the areas of mutual interest and benefit 
and recognise that it is inappropriate to encourage trade or investment by weakening or reducing 
the protections afforded in domestic labour laws (Article 11.6). Each Party w ill designate a contact 
point for labour issues no later than six months from the Agreement's entry into force.  
5.23.   The provisions on labour are not subject to the Agreement's dispute settlement pro cedure . 
5.11  Environment  
5.24.   Chapter 11 on economic cooperation contain s an Article  on environmental issues. The Parties 
agree it is inappropriate to set or use their environmental laws, regulations, policies and practices 
for trade protectionist purposes and inappropriate to relax or fail to enforce or administer their 
environmental laws and regulations to encourage trade and investment (Article 11.5). They agree 
to cooperate with the aim of preventing and/or reducing pollution and the degradation of natural 
resources and ecosystems, and through the development of projects de aling inter alia  with the WT/REG387/1  
 
- 29 - 
 
  transfer of knowledge and technology. Article 11.5 contains a list of areas in the environmental field 
on which the Parties may cooperat e. Each Party will designate a contact point for environmental 
issues no later than six months  from the date of entry into force of the Agreement.   
5.25.   The provisions on environment are not subject to the Agreement's dispute settlement 
procedure . 
5.12  Electronic Commerce  
5.26.   Chapter 11 on economic cooperation contains an Article on electronic commerce . The Parties 
agree to work tougher to assist small and medium enterprises to overcome obstacles and exchange 
information and share experiences of regulations, policies, enforcement and compliance regarding 
electronic commerce in a number of areas (Article 11.7). Other co -operat ion activities include 
encouraging interoperability of electronic authentication and digital certificates in the business and 
government sectors; facilitating cross -border electronic transactions and paperless trading; 
encouraging dev elopment by the private sector of methods of self -regulation that foster electronic 
commerce; and encouraging cooperation in research and training to enhance the development of 
electronic commerce including by sharing best practices on electronic commerce development.  Each 
Party will designate a contact point for electronic commerce no later than six months from the date 
of entry into force of the Agreement.  
5.27.   The provisions on electronic commerce are not subject to the Agreement's dispute settlement 
procedu re. 
5.13  Economic Cooperation  
5.28.   Chapter 11 deals with economic cooperation. The chapter covers a number of fields  of 
cooperation  including : trade and investment promotion; agriculture, aquaculture and fishery, food 
industry and forestry; mining; energy; small and  medium -sized enterprises; tourism; education; 
logistics and international transportation; and information and communication technology .  
5.29.   With the exception of GIs, t he provisions of Chapter 1 1 are not subject to the Agreement's 
dispute settlement mechanis m. WT/REG387/1  
 
- 30 - 
 
  ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Tables A1.1 and A1.2, by 
agricultural (WTO definition), non -agricultural and total products. Applied MFN duty rates in 201 5 
serve as a comparison.  
2. Chile's overall average applied MFN tariff rate in 2015 was 6% (Table A1.1 ). Likewise its 
applied tariff on agricultural and non-agricultural products  was 6% . Duty -free tariff lines accounted 
for 0.4% of all tariff lines. Upon entry into force of the Agreement, the share of duty -free tariff lines 
in agricultural products rose from 0% to 92.6%, while the share of duty -free tariff lines in non -
agricultural products rose from 0.5% to 90.7%. The average applied tariff for imports from Thailand 
fell to 0.4%. At the end of the transition period  in 202 3, all products imported from Thailand will be 
duty-free. 
Table A1. 1 Chile: Indicators of MFN tariff rates and preferential rates for imports from 
Thailand  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2015 6.0 6.0 0.4 6.0 6.0 0.0 6.0 6.0 0.5 
Thailand  2015 0.4 4.8 91.1 0.4 5.3 92.6 0.4 4.7 90.7 
2016 0.3 3.7 91.1 0.3 4.7 92.6 0.3 3.5 90.7 
2017 0.2 2.6 91.1 0.3 3.9 92.6 0.2 2.3 90.7 
2018 0.1 2.4 94.6 0.2 3.3 92.6 0.1 2.1 95.1 
2019 0.1 1.5 94.6 0.2 2.5 92.6 0.1 1.2 95.1 
2020 0.0 2.0 98.1 0.1 2.0 92.9 0.0 2.0 99.3 
2021 0.0 1.3 98.1 0.1 1.3 92.9 0.0 1.3 99.3 
2022 0.0 0.7 98.1 0.0 0.7 92.9 0.0 0.7 99.3 
2023 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
a WTO Definition.  
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Chile.  
 
3. Thailand's  overall average applied MFN tariff rate in 2015 was 12.4% (Table  A1.2). The 
average applied tariff on agricultural goods was 30.8%, compared to an average applied tariff of 
9.5% on non -agricultural products. Duty -free tariff lines accounted for 31% of all tariff lines. Upon 
entry into force of the Agreement, the share of duty -free tariff lines in agricultural products rose 
from 10.5% to 75.1%, while the share of duty -free tariff  lines in non -agricultural products rose from 
34.2% to 90.1%. The average applied tariff for imports from Chile fell to 3.4% overall, and 13.6% 
and 1.8% respectively for agricultural and non -agricultural products. By the end of the transition 
period in 20 23, 91.9% of agricultural products and 100% of non -agricultural products will be duty -
free.  WT/REG387/1  
 
- 31 - 
 
  Table A1. 2 Thailand: Indicators of MFN tariff rates and preferential rates for imports 
from Chile  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2015 12.4 17.9 31.0 30.8 34.5 10.5 9.5 14.4 34.2 
Chile 2015 3.4 28.0 88.0 13.6 54.5 75.1 1.8 17.6 90.1 
2016 3.0 24.7 88.0 12.6 50.7 75.1 1.4 14.5 90.1 
2017 2.5 21.4 88.1 11.6 48.4 76.0 1.1 11.2 90.1 
2018 2.1 21.8 90.1 10.8 65.8 83.5 0.8 8.8 91.2 
2019 1.6 16.3 90.1 9.2 55.9 83.5 0.4 4.6 91.2 
2020 1.3 50.7 97.4 9.1 67.0 86.4 0.1 10.4 99.1 
2021 1.3 50.7 97.4 9.1 67.0 86.4 0.1 10.4 99.1 
2022 1.3 50.7 97.4 9.1 67.0 86.4 0.1 10.4 99.1 
2023 1.0 93.9 98.9 7.6 93.9 91.9 0.0 0.0 100.0  
a WTO Definition.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of averages, 
specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Thailand.  
4. Table A1.3 shows the market access opportunities in Chi le for Thailand's  top 25 exports, which 
in 2012 -2014 accounted for  an average of 36% of Thailand's  global exports. The table shows in 
which year all HS 8 -digit tariff lines corresponding to the product definition will become duty free 
under the Agreement.  
5. Thailand's top 25 exports cover a total of 93 HS lines none of wh ich were duty free on an  MFN 
basis in Chi le's market in 2015. 86 lines are liberalized in 2015 and the remainder by the end of the 
transition period . 
Table A1. 3 Chile: Market access opportunities under the agreement for Thailand 's top 25 
exports to the world  
Thailand's top export products  
in 2012 - 2014  Access Conditions to Chile's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free 
lines under the 
agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. of 
duty 
free 
lines  
2015  
2018  
2020  
2023  
847170  Storage units for 
automatic data -processing 
machines  5.4 6 5  5     
271019  Medium oils and 
preparations, of petroleum 
or bituminous minerals, 
not containing biodiesel  3.5 6 12  12     WT/REG387/1  
 
- 32 - 
 
  Thailand's top export products  
in 2012 - 2014  Access Conditions to Chile's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free 
lines under the 
agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. of 
duty 
free 
lines  
2015  
2018  
2020  
2023  
870421  Motor vehicles for the 
transport of goods, with 
compression -ignition 
internal combustion piston 
engine "diesel or semi -
diesel engine" of a gross 
vehicle weight <= 5 t  3.3 6 13  13     
100630  Semi-milled or wholly 
milled rice, whether or not 
polished or glazed  1.9 6 3    3   
710812  Gold, incl. gold plated with 
platinum, unwrought, for 
non-monetary purposes  1.7 6 1  1     
400122  Technically specified 
natural rubber "tsnr"  1.6 6 1  1     
847330  Parts and accessories of 
automatic data -processing 
machines or for other 
machines of heading 8471  1.6 6 1  1     
870431  Motor vehicles for the 
transport of goods, with 
spark -ignition internal 
combustion piston engine, 
of a gross vehicle weight 
<= 5 t  1.2 6 12  12     
870899  Parts and accessories, for 
tractors, motor vehicles for 
the transport of ten or 
more persons, motor  cars 
and other motor vehicles 
principally designed for the 
transport of persons, 
motor vehicles for the 
transport of goods and 
special purpose motor 
vehicles  1.2 6 3  3     
160414  Prepared or preserved 
tunas, skipjack and 
atlantic bonito, whole or in 
pieces  1.1 6 3  3     
271012  Light oils and 
preparations, of petroleum 
or bituminous minerals 
which >= 90% by volume 
"incl. losses" distil at 
210°c "astm d 86 method"  1.1 6 11  11     
870322  Motor cars and other 
motor vehicles principally 
designed for the transport 
of persons, incl. station 
wagons and racing cars, 
with spark -ignition internal 
combustion reciprocating 
piston engine of a cylinder 
capacity > 1.000 cm³ but 
<= 1.500 cm³  1.1 6 6  6     
841510  Window or wall air 
conditioning machines, 
self-contained or "split -
system"  1.1 6 1  1     WT/REG387/1  
 
- 33 - 
 
  Thailand's top export products  
in 2012 - 2014  Access Conditions to Chile's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free 
lines under the 
agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. of 
duty 
free 
lines  
2015  
2018  
2020  
2023  
854231  Electronic integrated 
circuits as processors and 
controllers, whether or not 
combined with memories, 
converters, logic circuits, 
amplifiers, clock and 
timing circuits, or other 
circuits  1.0 6 1  1     
711319  Articles of jewellery and 
parts thereof, of precious 
metal other than silver, 
whether or not plated or 
clad with precious metal  0.9 6 1  1     
854239  Electronic integrated 
circuits  0.9 6 1  1     
852580  Television cameras, digital 
cameras and video camera 
recorders  0.9 6 3  3     
854232  Electronic integrated 
circuits as memories  0.9 6 1  1     
400121  Smoked sheets of natural 
rubber  0.9 6 1  1     
160232  Meat or offal of fowls of 
the species "gallus 
domesticus", prepared or 
preserved  0.9 6 3     3  
870323  Motor cars and other 
motor vehicles principally 
designed for the transport 
of persons, incl. station 
wagons and racing cars, 
with spark -ignition internal 
combustion reciprocating 
piston engine of a cylinder 
capacity > 1.500 cm³ but 
<= 3.000 cm³  0.8 6 6  6     
401110  New pneumatic tyres, of 
rubber, of a kind used for 
motor cars, incl. station 
wagons and racing cars  0.8 6 1   1    
400110  Natural rubber latex, 
whether or not 
prevulcanised  0.8 6 1  1     
390120  Polyethylene with a 
specific gravity of >= 
0,94, in primary forms  0.8 6 1  1     
711311  Articles of jewellery and 
parts thereof, of silver, 
whether or not plated or 
clad with other precious 
metal  0.7 6 1  1     
TOTALS  36.0 6 93 - 86 1 3 3 - 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates 
are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Chile and UNSD, Comtrade database.  
 WT/REG387/1  
 
- 34 - 
 
  6. Table A1.4 shows the market access opportunities in Thailand  for Chi le's top 25  exports, which 
in 2012 -2014 accounted for an average of 72.7% of Chi le's global exports. The table shows in which 
year all HS 8 -digit tariff lines corresponding to the product definition will become duty free under 
the Agreement.  
7. Chile's top 25 exports cover a total of 47 HS lines of which 15 were already duty -free on an 
MFN basis in Thailand's  market in 2015. 18 lines are liberalized in 2015 and the remainder by the 
end of the  transition period . 
Table A1. 4 Thailand: Market access opportunities under the agreement for Chile's top 25 
exports to the world  
Chile's top export products  
in 2012 - 2014  Access Conditions to Thailand's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free lines 
under the agreement  
Remain 
Dutiable  Avg MFN 
applied 
rate (%)  
No. of 
dutiable 
lines  
No. of duty 
free lines  
2015  
2017  
2018  
2020  
2023  
740311  Copper, refined, in the form of 
cathodes and sections of 
cathodes  25.5 1.0 1  1      
260300  Copper ores and concentrates  21.0 0.0  1       
740200  Copper, unrefined; copper 
anodes for electrolytic refining  4.3 0.0  1       
080610  Fresh grapes  2.0 30.0 1    1    
220421  Wine of fresh grapes, incl. 
fortified wines, and grape must 
whose fermentation has been 
arrested by the addition of 
alcohol, in containers of <= 2 l  1.9 57.6 5   5     
710812  Gold, incl. gold plated with 
platinum, unwrought, for non -
monetary purposes  1.7 0.0  1       
470321  Semi-bleached or bleached 
coniferous chemical wood pulp, 
soda or sulphate  1.7 0.0  1       
470329  Semi-bleached or bleached non -
coniferous chemical wood pulp, 
soda or sulphate  1.5 0.0  1       
260111  Non-agglomerated iron ores and 
concentrates  1.4 0.0  1       
261310  Roasted molybdenum ores and 
concentrates  1.1 0.0  1       
440710  Coniferous wood sawn or 
chipped lengthwise, sliced or 
peeled, whether or not planed, 
sanded or end -jointed, of a 
thickness of > 6 mm  1.1 0.0  1       
280120  Iodine  1.0 0.0  1       
080810  Fresh apples  1.0 10.0 1    1    
030441  Fresh or chilled fillets of pacific 
salmon  0.9 5.0 1      1  
271019  Medium oils and preparations, of 
petroleum or bituminous 
minerals, not containing 
biodiesel, n.e.s.  0.7 8.2 14 2 14      
030312  Frozen pacific salmon  0.7 0.0  1       
030481  Frozen fillets of pacific salmon  0.6 5.0 1      1  
740811  Wire of refined copper, with a 
maximum cross -sectional 
dimension of > 6 mm  0.6 5.0 2  2      
081040  Fresh cranberries, bilberries and 
other fruits of the genus 
vaccinium  0.6 40.0 1    1    
310420  Potassium chloride for use as 
fertiliser  0.6 0.0  1       
080929  Fresh cherries  0.6 40.0 1    1    WT/REG387/1  
 
- 35 - 
 
  Chile's top export products  
in 2012 - 2014  Access Conditions to Thailand's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2015  No. of duty free lines 
under the agreement  
Remain 
Dutiable  Avg MFN 
applied 
rate (%)  
No. of 
dutiable 
lines  
No. of duty 
free lines  
2015  
2017  
2018  
2020  
2023  
230120  Flours, meals and pellets of fish 
or crustaceans, molluscs or 
other aquatic invertebrates, unfit 
for human consumption  0.6 11.7 3     3   
030214  Fresh or chilled atlantic salmon 
"salmo salar" and danube 
salmon "hucho hucho"  0.5 0.0  1       
030313  Frozen, atlantic salmon "salmo 
salar" and danube salmon 
"hucho hucho"  0.5 0.0  1       
020329  Frozen meat of swine  0.5 30.0 1  1      
TOTALS  72.7 9.7 32 15 18 5 4 3 2 - 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates 
are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Thailand and UNSD,  Comtrade database.   WT/REG387/1  
 
- 36 - 
 
  ANNEX 2  
1. Thailand grants Chile tariff rate quotas on a number of products within the quota quantities 
committed by  Thailand under the WTO. The in -quota rate is zero for all products, while the out of 
quota rate is the MFN rate. The TRQ quantity is not specified.  
Table A2. 1 Thailand: Tariff rate quotas for products originating in Chile  
Product Description  Tariff line(s)  Quota 
volume 
under WTO 
(tons/year)  MFN 
TRQ rate 
(%) Out of 
quota 
rate 
(MFN 
rate)  In  
Milk and related products  - In liquid 
form 0401.10.10  – 0401.50.90  
2,400  20 41 
Flavoured UHT milk  2202.90.10  20 84 
Soya milk drinks*  2202.90.20  20 84 
Other non -aerated beverages ready 
for immediate consumption without 
dilution * 2202.90.30  20 84 
Other*  2202.90.90  20 84 
Skimmed milk powder  0402.10.41 -0402.10.99  55,000  20 41 
Potatoes  0701.10.00 , 0701.90.00  302 27 125 
Onions  0703.10.11 , 0703.10.19 , 
0712.20.00  365 27 142 
Garlic  0703.20. 10, 0703.20.90, 
0712.90.10  65 27 57 
Coconut  0801.11.00  – 0801.19.00  2,427  20 54 
Longans  0813.40.10  8 30 53 
Coffee  0901.11.10  – 0901.90.20  5.25 30 90 
Tea 0902.10.10  – 0902.40.90  625 30 90 
Pepper  0904.11.10  – 0904.12.90  45 27 51 
Maize for feed  1005.90.90  54,700  20 73 
Rice 1006.10.10  – 1006.40.90  249,757  30 52 
Soya beans  1201.10.00 , 1201.90.00  10,922  20 80 
Copra.  1203.00.00  1,157  20 36 
Onion seeds  1209.9 0.10 3.15 30 218 
Soya bean oil  1507.10.00  – 1507.90.90  2,281  20 146 
Palm oil  1511.10.00  – 1511.90.99  
1513.21.10 – 1513.29.97  4,860  20 
 143 
Coconut oil 1513.11.00  – 1513.19.90  401 20 52 
Cane or beet  sugar  1701.12.00  – 1701.99.90  13,760  65 94 
Instant coffee  2101.11.10  – 2101.12.90  134 40 49 
Soya bean cake  2304.00.90  230,559  20 119 
Raw silk (not thrown).  5002.00.00  483 30 226 
* For beverages containing milk . 
Source:  WTO Secretariat . 
 
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